Welcome to the May edition of Specialised Investments Simplified, where we round up the latest developments in the investment world and turn them into practical insights for financial planners and paraplanners. This month, we’re diving into inheritance tax planning post-Budget, the growing power of sustainable investing, and a couple of innovative opportunities making waves.
🏡 Inheritance Tax Planning: What You Should Know Now
Budget implications – what’s really going on? The government’s proposed changes to inheritance tax (IHT) – due in April 2026 – are causing a stir. Agricultural and business property relief could be limited, and farms worth over £1 million may face a 20% tax hit. While exemptions are still in place, it’s important to help clients take stock now and avoid getting caught out.
Practical planning tips:
- Encourage early action – talk to clients about reviewing gifting strategies now, before any new rules bite.
- Revisit existing trusts – some structures could become less tax-efficient, so a refresh might be in order.
- Remind clients about the 7-year rule – gifts outside the estate can still be a smart move when properly timed.
Spotlight on: TIME Investments
We’ve also been looking at TIME:Advance, a BR-qualifying investment that aims to deliver IHT relief in just two years. With flexible withdrawal options and a target return of 3–4.5% p.a., it’s worth considering for clients looking to retain access to their funds while planning efficiently.
🔗 Learn more about TIME:Advance
💰 Gifting Trends: Bank of Mum and Dad is Going Strong
Parents gave or loaned nearly £9.6 billion in 2024 to help their children onto the property ladder – that’s over half of all first-time buyer property purchases! With IHT rules in flux, many families are using gifting more proactively to transfer wealth sooner.
What to flag to clients:
- Document gifts clearly – especially if they could fall under the ‘gifts out of normal expenditure’ exemption.
- Review life insurance needs – gifting large amounts might warrant a protection check-in.
- Start the 7-year clock early – the sooner gifts are made, the better for long-term planning.
🌱 Sustainability in Practice: Our Work with Etcho
We know ESG isn’t just a trend – it’s part of good financial planning. That’s why we work closely with Etcho, a fantastic platform helping advisers align client portfolios with their sustainability goals.
What Etcho offers advisers:
- Client-facing sustainability assessments
- Portfolio screening tools to match ESG preferences
- Practical ways to start meaningful conversations around values-based investing
Check out more about how they help planners here: Etcho for IFAs
Also worth a read: Greenbank’s latest update on food security and nature-based risk shows just how quickly the ESG landscape is evolving.
🔗 Greenbank Sustainability Update – April 2025
🔎 Investment Trends: Innovation That Caught Our Eye
Foresight backs Functional Gut Group Foresight Group has invested £5.75m into the Functional Gut Group, a business offering diagnostic services for digestive health issues. It’s a growing market with potential for both health and returns. 🔗 More on this investment
Puma AIM VCT launches – first in 18 years Puma Investments has launched the first new AIM-focused VCT in nearly two decades. It’s already made an investment into quantum science company Quantum Base, which tells you something about where they see the future. 🔗 Puma AIM VCT launch details
💬 Final Thoughts
With IHT changes on the horizon and new ESG rules coming in, this is a great time to get ahead with practical planning and meaningful conversations.
At We Complement, we’re here to help you stay informed and efficient – whether it’s paraplanning support, help developing your CIP/CRP, or making sense of complex investment options. If you’d like to chat about how we can support your advice process, we’d love to hear from you.
📩 Drop us a message – we’re always happy to talk.
