Welcome to this month’s edition of Specialised Investments Simplified, where we break down key trends and developments shaping the investment landscape. This month, we’re focusing on practical IHT planning advice post-Budget and key updates in sustainable finance—helping you, as financial advisers, better guide your clients through these changes.
Post-Budget IHT Planning: Practical Advice for Advisers
With potential IHT changes on the horizon from April 2027, pensions may no longer be the default ‘tax-efficient’ wealth transfer vehicle they once were. So, what should advisers be doing now?
🔹 Encourage clients to act early– If pensions become liable for IHT, withdrawals may need to start sooner than planned. However, this only works if the funds are then used efficiently.
🔹 Plan for the ‘spend, shelter, or gift’ rule– Whether clients are using trusts, gifting allowances, or spending their wealth, every action needs to be deliberate.
🔹 Utilise trust solutions– Loan trusts, discounted gift trusts, and gift trusts could be useful, depending on client needs. Investment bonds within trusts may also provide tax-efficient benefits.
🔹 Maximise annual gifting allowances– £3,000 per year (or £6,000 if unused from the prior year) can be gifted tax-free, plus small gifts of £250 to multiple individuals. Contributions to ISAs or pensions for family members could also be a smart move.
🔹 Document ‘gifts out of normal expenditure’– This is an often-overlooked exemption that, if used correctly, allows gifts to be immediately outside of an estate. However, meticulous record-keeping is essential.
IHT Reform: What Advisers Need to Know About Agricultural & Business Property Relief
The government’s consultation on Agricultural and Business Property Relief (APR/BPR) is creating complexity for estate planning. While the £1m allowance for 100% reliefis helpful, new rules around trusts and transfers add significant challenges.
💡 Key adviser takeaways:
✅ Interest-free instalment optionsfor IHT payments could ease cashflow issues for beneficiaries inheriting qualifying assets.
❌ Trust taxation is getting more complicated– expect increased compliance and administrative burdens.
❌ Spousal transfers aren’t permitted, meaning business owners and farmers may need to restructure to avoid forced sales after the first death.
🚨 Next steps:Clients holding significant APR/BPR-eligible assets should review their estate plans now, particularly if they use trust structures. More legislative clarity is expected in the coming months, but early planning is key.
Sustainability in 2025: Practical Guidance for Advisers
Sustainable investing is evolving rapidly, and advisers need to stay ahead of both regulatory shifts and client expectations.
🌱 Greenwashing remains a major risk – Nearly 25% of Article 8 funds still fail to meet green criteria. Ensuring clients’ ESG investments align with their actual sustainability preferences is more important than ever. 📜 New SDR rules – The Sustainability Disclosure Regulation (SDR) framework is evolving, requiring advisers to provide more transparent, credible recommendations. 💰 Fidelity adopts SDR ‘Sustainability Mixed Goals’ labels – A sign that transparency in sustainable investing is becoming a priority for fund managers.
At We Complement, we use @Etcho, a powerful tool designed to help advisers bring sustainability into client conversations in a meaningful way.
Etcho provides:
✅ Clear ESG insights – Helping advisers align investment strategies with client values.
✅ Interactive sustainability tools – Making complex ESG factors easier to communicate.
✅ A streamlined approach to responsible investing – Giving advisers confidence in their recommendations.
🔗 Essential reads: Greenwashing Risks Sustainability in 2025 SDR Regulations Fidelity’s Sustainability Labels
The investment and tax landscape is shifting, and proactive planning is crucial. Whether it’s navigating potential IHT reforms or adapting to sustainable investment regulations, advisers need to stay ahead to provide the best outcomes for clients.
At We Complement, we understand the challenges you face. Our expertise and support services are designed to help you stay on top of regulatory changes, streamline your advice process, and ultimately, deliver better client outcomes. If you’d like to explore how we can complement your business, we’d love to chat.
📩 Get in touch today to see how we can support you.
Until next time,
Lucy
