Most inheritance tax (IHT) mitigation strategies tend to focus on a familiar group of assets such as SME lending, property, or alternative energy.

As the IHT landscape continues to evolve, advisers are increasingly looking beyond traditional structures to ensure client portfolios are genuinely diversified, not just by provider, but by sector, asset behaviour, and risk drivers.

The Limits of Traditional IHT Strategies

SME lending, property-backed investments, and renewables all play a vital role in Business Relief planning, but they also share common challenges.

First, there is economic correlation. In periods of stress such as rising interest rates, tighter credit conditions, or economic slowdown, these asset classes can be affected simultaneously. What looks diversified on paper may be exposed to the same underlying risks.

Second, security and liquidity can be misunderstood. Property and SME-backed assets are often perceived as inherently safe, yet valuations can fluctuate and exits may be slow or complex, particularly when capital is required at a specific point for estate planning purposes.

Finally, valuation opacity is a recurring issue. Many traditional strategies rely on forward-looking assumptions, periodic revaluations, or market sentiment. For advisers, this can make it harder to clearly explain how an asset is valued and how that value might change over time.

A Different Approach: Film & TV Secured Lending

Film and television secured lending offers an alternative way to access Business Relief while addressing some of these challenges.

From a correlation perspective, returns are typically driven by production schedules and contracted revenues rather than broader economic cycles. This can make film and TV lending a useful diversifier alongside more conventional IHT solutions.

In terms of security, loans are commonly structured against clearly defined contractual cash flows, such as government back film and TV tax credits, reputable broadcaster licence fees, pre-sales and distribution agreements. These features provide a more predictable route to repayment than assets reliant on future market values.

Valuation clarity is another key differentiator. Film and TV loans are generally anchored to known production budgets and contracted income streams. This makes them easier to assess, monitor, and communicate, an important consideration when advising clients on long-term estate planning.

Gap Financing and Targeted Returns

Within film and TV lending, gap financing is used to cover the shortfall between a project’s total production budget and the funding already secured from sources such as equity, pre-sales or tax credits, allowing productions to proceed once the funding is in place.

Gap loans are typically secured against projected, unsold distribution rights, which are assessed conservatively by experts using comparable titles and market data. Because gap finance sits behind senior funding and relies on these unsold revenues, it carries a higher level of execution and market risk than fully contracted senior loans. As a result, it can target higher returns.

For advisers, gap financing offers access to enhanced return potential within a structured and disciplined lending framework, while retaining valuation transparency and rigorous underwriting, making it a differentiated component within Business Relief portfolios.

The Role of Rigorous Due Diligence

Perhaps most importantly, film and TV secured lending is underpinned by a highly rigorous due-diligence process. Before any capital is deployed, each loan is typically subject to detailed analysis, including:

  • Scrutiny of finance plans, production budgets, cash-flow and production schedules
  • Review and analysis of distribution contracts and counterparty strength
  • Assessment of completion risk, insurance cover, and security/legal structures

This multi-layered diligence helps reduce execution risk and provides advisers with greater confidence in how capital is being deployed.

A Complement, not a Replacement

Film and TV secured lending is not intended to replace traditional IHT strategies. Instead, it offers advisers an opportunity to diversify Business Relief exposure by sector, adding an asset class with different risk drivers, clearer valuation mechanics, and disciplined underwriting.

In an environment where many IHT portfolios are built around similar assets, that differentiation is becoming increasingly important.

Effective IHT planning is no longer just about qualifying for relief, it’s about how that relief is delivered, valued, and diversified.