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Industry Update | April 2025
business relief
When Business Relief investments can help
TIME Investments
Text
Thought Leadership
Seneca Partners
Ask the Manager: Seneca Partners
Ingenious
Navigating trends, challenges, and opportunities: Five key areas to consider in the real estate sector
Stellar Asset Management
BR AIM - "The reports of my death are greatly exaggerated"
Blackfinch
Understanding how Inheritance Tax is proportionately shared across investments
Octopus Investments
Navigating changes for clients with more than £1 million of Business Relief assets
The BR Universe today
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Celebrating 30 years of EIS If you invested in VCT in 2021, why not now? EIS and VCTs: Help your clients achieve their long-term investment goals Investing in the downturn Three essential questions to ask before recommending an EIS provider to your client Getting to grips with Knowledge-Intensive (KI) EIS investments Signs of a strong VCT manager in turbulent markets Why aren’t more financial advisers recommending SEIS? Why the Triple Point Venture VCT? The interview room When EIS loss relief steps in VCTs’ evolving investor profile: the increasing appeal for younger audiences Growth Investor Awards 2024 About Intelligent Partnership
Puma AIM IHT Service is open for investment. To find out more, please visit our website or get in touch with our Business Development team.
Pumainvestments.co.uk businessdevelopment@pumainvestments.co.uk
puma aim iht service
The BR Universe today Ask the manager: Seneca Partners BR AIM - The reports of my death are greatly exaggerated Navigating trends, challenges and opportunities: Five key areas to consider in the real estate sector Understanding how Inheritance Tax is proportionately shared across investments Navigating changes for clients with more than £1 million of Business Relief assets When Business Relief investments can help About Intelligent Partnership
The new threshold that will apply jointly to the value of assets claimed under Agricultural Property Relief (APR) and Business Relief from April 2026 (BR), will restrict full IHT exemption for qualifying agricultural land, business assets and unlisted shares to £1 million. A reduced 50% relief (or 20% IHT) will apply to any excess and to all AIM or Aquis quoted shares. Add to that, the inclusion of unused pension capital becoming part of a deceased’s taxable estate on death from April 2027 and the proportion of deaths subject to inheritance tax is forecast to almost double from 5.2% in 2023-24 to 9.5% in 2029-30. With the response to HMRC’s technical consultation on the changes (focused on trust arrangements) open until 23 April, we don’t yet have the full details of exactly how some will apply. But we do have some time to consider what their impacts will be and to take action to mitigate at least some of the potentially-increased tax burden.
With the October 2024 budget, Labour introduced arguably the biggest shake up of Business Relief rules in its almost fifty-year history.
In fact, there are several reasons for optimism around the ongoing utility of Business Relief, including:
The publicity around the new £1 million 100% relief threshold raises awareness among both potential investors and advisers, of the tax advantages on offer and legitimacy of using this allowance.
A new certainty around Business Relief that was absent in the run up to the election and to Labour’s first budget since regaining power. That means many individuals for whom it would have been a good option, took no action while waiting for clarification of the situation, creating a build-up of dry powder that can now be released. The mainstreaming of IHT and estate planning thanks to the October 24 budget changes and others in the last few years are bringing a far larger cross section of individuals into the IHT net at a younger age as a result of inflation, frozen thresholds and pension wealth. Government recognition of the value of Business Relief as an important incentive that directs capital towards our vital scale up ecosystem. The publicity around the new £1 million 100% relief threshold raises awareness among both potential investors and advisers, of the tax advantages on offer and legitimacy of using this allowance. The added complexity Business Relief and pensions changes bring to estate planning, highlighting the importance of taking financial advice to review current plans and making suitable adjustments to ensure the best possible outcomes are still achieved for clients. The credibility of Business Relief as a diversifying estate planning method in the context of estate sizes (and therefore IHT liability) suddenly inflated by unused pension capital. A range of estate planning methods is likely to offer the best solution and Business Relief continues to be useful in combination with, for example, gifting, trust arrangements and insurance options.
Office for Budget Responsibility (OBR) October 2024 Economic and fiscal outlook
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Advisers now have a great opportunity to really illustrate the value they bring with their planning skills and knowledge to support legacy and lifestyle objectives against the context of the great wealth transfer under the Consumer Duty regime.
Hi Peter, thanks for sitting down with us today. Following the announcements from the Autumn Budget, could you give us some insight behind why you think there is an increasing interest from clients looking to move out of their AIM IHT portfolios? Of course. In last October’s Budget, it was announced that AIM portfolios will only qualify for up to 50% Business Relief (BR) from 6th April 2026, whereas shares in private companies will still qualify for up to 100% BR if they are within the investor’s first £1 million of BR/APR assets. This change has led many investors or their advisers to consider moving from an existing AIM-based IHT solution to a private company-based solution. How do these changes affect the value of AIM portfolios compared to private company solutions? The issue is that even if an AIM portfolio sees a 50% increase in value, the estate will still be subject to a 20% Inheritance Tax, meaning the net value is no more than a private company-based solution that sees a 20% increase in value with no tax applied. Also, if more and more investors switch out of AIM portfolios, it could create downward pressure on the AIM share prices. If someone switches from an AIM portfolio, do they have to start a fresh 2-year BR qualification period? Fortunately not. If an investor switches from one BR qualifying asset to another, they should still qualify for BR without the need to restart the two-year BR qualification period by using Replacement Property Relief, as long as the assets have been held for a total of at least 2 years out of the last 5. However, the rate of that Replacement Property Relief “shall not exceed what it would have been had the replacement or any one or more of the replacements not been made” [Section 107(2) of the Inheritance Tax Act]. Therefore, after 6th April 2026, where an AIM portfolio contributes to a part of that two-year qualification period, the portfolio will only qualify for 50% BR if the investor passes away, so timing the switch becomes crucial.
The rate of that Replacement Property Relief shall not exceed what it would have been had the replacment or any one or more of the replacements not been made.
Ask the manager: Seneca Partners
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We sat down with Peter Steele, Retail Operations Director at Seneca Partners, to discuss recent changes to Business Relief (BR) following the Autumn Budget.
Could you walk us through the potential timing scenarios if an investor does decide to switch their portfolio? Sure. If an investor switches from an AIM portfolio on 6th April 2025, the maximum BR their estate could receive would be:
If you’d like to find out more about how our IHT Service can benefit your clients, or to discuss the latest changes to Business Relief, please your local Seneca Relationship Manager at
tellmemore@senecapartners.co.uk 01942 295 985
SENECA iht service
100% BR if they die during the first year post-transfer (under current rules); 50% BR if they die during the second year post-transfer (under the new proposed rules); or 100% BR if they die thereafter (under the new proposed rules)
If the switch happens later, say 6th October 2025, the maximum relief could be:
100% BR if they die during the first six months post-transfer (under current rules); 50% BR if they die during the next 18 months (under proposed new rules); or 100% BR if they die thereafter (under proposed new rules)
If it is right for an investor to move from an AIM based IHT solution, acting sooner should help reduce the period of time in which their portfolio may only qualify for a maximum of 50% Business Relief upon death. So what about the Seneca IHT service? What are you currently offering investors who may be considering moving assets? We are currently offering no upfront fees for advised clients investing in our private company-based IHT Service until the end of June 2025. This includes waiving the initial fee and covering the dealing fees for any new investments made during this period, whether transferring from an AIM Portfolio or simply investing new money. This ensures that 100% of the investment goes directly into the portfolio, which is a great opportunity for anyone looking to make a switch.
With significant shifts coming into effect on 6th April 2026, Peter sheds light on how these changes will impact AIM-based IHT portfolios, private company solutions, and what investors and advisers need to consider in light of these changes.
senecapartners.co.uk peter.steele@senecapartners.co.uk
Retail Operations Director, Seneca Partners
PETER STEELE
- Section 107(2) of the Inheritance Tax Act
The BR Universe today Ask the manager: Seneca Partners BR AIM - The reports of my death are greatly exaggerated Navigating trends, challenges and opportunities: Five key areas to consider in the real estate sector Understanding how Inheritance Tax is proportionately shared across investments Navigating changes for clients with more than £1 million of Business Relief assets When Business Relief Investments can help About Intelligent Partnership
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- Van Hoang, Investment manager, Blackfinch Investments
The clearer market environment post-Brexit, as well as a tighter grip on the pandemic, creates an outlook conducive to increased listings on AIM.
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BR AIM - "The reports of my death are greatly exaggerated”
role, Intelligent Partnership
Smaller stakes have little choice
Unfortunately, individual retail investors are unlikely to hold a large enough stake to change the outcome of these votes. But, on the other hand, in the vast majority of takeovers seen in the first half of 2021, there was a substantial bid premium where the share price increased during the offer period. The highest was an eye-watering 79%, although more commonly, it was in the lower, but still very pleasing 20% - 50% range.
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By John Fearon, Head of Third-Party Relations, Stellar Asset Management
When the macro landscape is depressing, and the mood music grim, it’s always easier to peddle a negative view of things rather than a positive one! But following the crowd doesn’t necessarily make it right… and that’s where we currently sit re AIM Business Relief and its relevance moving forward. “Just switch AIM into Asset Backed”, seems to be the default narrative at the moment. But we’d disagree and would caution against knee jerk actions. Our main concern about the current “switch” narrative is that there may be unintended consequences. When you look closely it’s not all doom and gloom for AIM – there are good reasons why Stephen English, Stellar’s Investment Director and head of AIM, titled his recent webinar “AIM, reasons to be cheerful… believe it or not”. Let’s not forget, the budget took the worst-case scenario off the table in terms of full AIM IHT qualification removal - 20% is still an attractive discounted IHT rate and we can now move forward with a degree of certitude. As a result, AIM Business Relief will likely be pointed more towards the HNW market, so simply requiring a reappraisal of the target market particularly in light of the changing pension landscape. Once the £1m pot is full, and for many HNWs it will be, it’s a level playing field and allocations will be made to AIM in the interest of diversification, liquidity and growth potential. As for those already invested in AIM ISAs, IHT mitigation isn’t the only benefit – there’s CGT insulation and dividend tax exemption. Does moving from that into Asset Backed in the quest for 40% IHT relief justify moving out of the most tax efficient wrappers around? And let’s not forget the potential for growth. This is difficult to argue after three consecutive down-trending years, but current valuations are undeniably attractive, and we believe there is good money to be made for those prepared to adopt a medium to longer term view – where Business Relief investments should be positioned. Finally, don’t write off the current treasury lobbying to create a level AIM/AB playing field in the interests of maintaining a healthy AIM market. Imagine moving out of an AIM ISA and into a questionably illiquid Asset Backed scheme to then find the proposed new rules change.
So, overall, our advice to advisers would be that the situation continues to evolve, and we’d caution against an immediate response that may be regretted. We believe the pessimism is overdone. AIM still has the potential to supercharge portfolios because:
stellar-am.com enquiries@stellar-am.com
Head of Third-Party Relations, Stellar Asset Management
john fearon
Recent economic data, believe it or not, has been better than expected: Wages are up 30% since 2019; debt has largely been paid down; savings rates are higher than they would ordinarily be. That can’t carry on indefinitely and when the mean reverts, spending will increase. Whilst confidence is currently low, it is on an improving trajectory. The Ukraine war has caused average gas prices to treble but recently dropping prices and the potential successful resolution of peace negotiations on the horizon suggests a drop in forecast inflation and the possibility of more interest rate cuts than the two currently priced in this year. This will have a big effect especially on UK small cap. As soon as H2 we could see a positive energy outlook with a powerful disinflationary stimulus. The UK looks better placed to weather tariff risks than many others with the US running a trade surplus with the UK. The only other time the UK has had three consecutive years of negative returns was from the fallout of the dot.com bubble, with markets then returning 39% in 2003 and 20% in 2004. So, if history rhymes there could be a significant cyclical upside baked in. The median valuation on AIM going back to 2009 is currently significantly lower than the average and close to the bottom of its interquartile lower range. There is also a much-reduced premium (to the norm) to the FTSE 250 and FTSE 100 – all providing a good indication of long-term returns. Using the Enterprise value to Sales ratio, Stellar’s own AIM Business Relief portfolio currently sits at 2.2x EV/sales compared to the 2.8x 10 year average. So, if we merely re-rate to the longer-term average that represents a 28% upside … and it could be more as these things tend to move like a pendulum.
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The trends are encouraging, and we think they certainly warrant full consideration alongside each client’s individual circumstances, rather than an immediate and indiscriminate reaction to the AIM Business Relief changes, which are not due to come into force for another year. Those that act in haste, may repent at leisure.
Buybacks are increasing across the main market and AIM, it making sense to buy your own shares when they’re markedly cheaper than they should be. M&A is on the up with many overseas buyers taking advantage of low valuations and a weak currency. There have been around 50 takeovers since 2023, typically at 40%-45% premiums, often still at levels below their long-term historical rating. UK equity outflows have been dreadful for four years but this is changing with increased institutional interest from the US and Europe; possible changes to ISA rules could also encourage greater equity investment and growing pension fund allocations to UK equities could be a huge boost to inflows. “The great rotation”, out of US equities to elsewhere, could also provide a huge stimulus. Incredibly, 33% of the weighting of the mighty S&P 500 is in just seven companies! 75% of the MSCI World is the US, being fed by global asset allocation models resulting in a massive overconcentration in seven stocks and one country. Every 1% rotation out of US assets represents c. £720 billion of value and if that gets allocated even in some small part to the UK, prices will likely rise, starting with larger firms, but then percolating down to mid and then small cap that could unwind like a coiled spring.
So, there’s certainly good value to be had for those with a longer-term view, and for those looking for the signs – here are a few:
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By Ingenious Group
Interest rates and borrowing challenges
The UK real estate market is set to navigate a complex landscape shaped by political, economic, and regulatory factors. From political uncertainties and shifting rental dynamics to interest rate pressures and construction challenges, adaptability and strategic foresight will be key for investors. Emerging trends like co-living underline the sector’s evolution, offering flexible, community-driven solutions that resonate with changing market needs. As these dynamics unfold, the focus on resilience and innovation will define success in an increasingly demanding environment.
Conclusion
As mentioned previously, interest rates will remain a key driver for the real estate market in 2025. The Bank of England recently announced it will take a “gradual and careful approach” to reductions, following another rate cut in February from 4.75% to 4.5%. Despite recent cuts, it is expected that borrowing costs will stay elevated compared to pre-pandemic norms due to broader economic pressures, such as high global debt and inflation concerns. For homebuyers, developers, and the build to sell market, this means long term challenges in accessing affordable financing and delivering much needed new housing to the market.
The rental market is expected to maintain strong momentum as homeownership remains difficult for many. The discontinuation of government schemes like Help to Buy, combined with high mortgage rates and inflation, have recently left first-time buyers struggling. Even with the Bank of England starting to cut interest rates, the affordability gap remains significant, and many potential buyers are still unable to enter the housing market. Consequently, rental demand, particularly in urban areas, is set to grow, with residential rents having seen double-digit increases in each of the last three years. Traditional buy-to-let investors continue to feel the pinch from a changed tax framework, increased regulations and a tougher compliance environment, reducing rental supply. This can only further elevate rents and underscores a shift towards Build-to-Rent developments. These purpose-built projects are designed with long-term renters in mind, providing stable and attractive returns for investors.
A stronger rental market
The political landscape continues to present risks for real estate in 2025. Key uncertainties include recent changes in global leadership, especially within major economies like the United States, and the ongoing repercussions of the UK’s post-Brexit relationship with the European Union. Challenges around trade deals, tariffs, and economic isolation remain a threat to market confidence and transaction volumes. For property investors and developers, these uncertainties make long-term planning increasingly complex. In a volatile political climate, many may adopt a more cautious approach, focusing on adaptable strategies to mitigate risk and anticipate shifts in policy.
Political uncertainty and real estate risks
The UK real estate market is navigating a complex and ever-evolving landscape. Investors must weigh evolving factors such as political uncertainties, shifts in rental demand, and the impact of economic pressures on borrowing costs. In this article, Ingenious, a specialist investment manager, looks at five key areas to watch in the real estate sector.
Inflation and construction challenges
The construction industry remains vulnerable to high inflation, despite further anticipated Base Rate reductions. Rising costs for materials and labour have already strained smaller and larger contractors alike, and a resurgence of inflation could see further financial stress. The introduction of a stricter regulatory environment under the Building Safety Act adds another layer of complexity and cost, potentially leading to delays in project timelines and further contractor stress.
The rise of co-living spaces
Co-living continues to gain traction in dense urban areas like London, appealing particularly to young professionals and post graduates seeking flexible, community-driven living arrangements. These modern spaces provide not just accommodation, but a lifestyle - with shared amenities and communal environments fostering a sense of connection. Investors are recognising the long-term growth potential of the co-living sector, which aligns with broader trends towards affordability and flexible living options. As housing costs remain high, co-living is poised to complement traditional rental models and become a key part of the housing market in 2025 and beyond.
theingeniousgroup.co.uk investments@theingeniousgroup.co.uk
nheritance Tax (IHT) planning is a vital area for financial advisers and paraplanners, particularly when working with high-net-worth clients. Among the tools available, Business Relief (BR)-qualifying investments play a significant role in reducing a client’s potential IHT liability. However, it is crucial to understand how IHT liabilities are proportionately shared across investments when HMRC assesses an estate. This article explores how the rules will work after 6th April 2026 and uses a worked example to clarify the practical implications for client portfolios.
By Thomas Jaffrey, Executive Business Development Manager
blackfinch.com enquiries@blackfinch.com
Executive Business Development Manager Blackfinch Investments
Thomas Jaffrey
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Nil Rate Bands still apply - A Tax-Free Allowance of up to £1,000,000
• £325,000 Nil-Rate Band (NRB) • £175,000 Residence Nil-Rate Band (RNRB) • Both allowances transferable between spouses/civil partners (if unused on first death) • Total for a couple: £1,000,000
Two years ago, Robin invested £1.2m into two unquoted BR-qualifying investments in amounts of £800,000 with provider A and £400,000 with provider B, respectively. His other assets are covered by RNRB allowances.
Under the new rules, IHT falls due on the amount above £1m personal BR allowance (i.e., £200,000) at the new 20% rate. The IHT liability is proportionally spread across both BR-qualifying investments.
(£800/000/£1,200,000) = 66%. This means two thirds of the liability is owed from the £800,000 investment with provider A = approx. £26,666
Scenario
Quote
Business Relief and the Personal Allowance
Business Relief offers up to 100% IHT relief on the value of certain qualifying business assets, including investments in qualifying Alternative Investment Market (AIM) shares and unlisted trading companies. To qualify for BR, investments must typically be held for a minimum of two years and at the time of death.
Composed of:
• Business Relief qualifying assets such as unlisted company shares • Agricultural Relief qualifying assets such as farms, that qualify for 100% exemption • Any BR and AR qualifying assets gifted to beneficiaries or settled into Trust in the seven-years preceding death of the settlor • Enterprise Investment Scheme (EIS) portfolios
The following investments are included when checking if the £1,000,000 personal BR allowance has been exceeded:
What Counts Towards the £1,000,000 Personal BR Allowance?
The £1,000,000 BR allowance is non-transferable and can only be used on the death of the individual holding the BR-Qualifying assets.
The £1m personal BR allowance resets after seven-years for any gifts of BR during the client’s lifetime.
• AIM-listed shares (that qualify for BR) • AR qualifying assets that only qualify for 50% exemption • Land, buildings, machinery or plant used wholly or mainly for the purposes of the business carried on by a company or partnership • Listed shares where 50% voting rights are held
The following are excluded when checking your IHT allowance:
Although they receive 50% Business Relief (from April 2026), AIM shares are not counted when assessing whether you’ve exceeded your personal BR allowance.
What Does NOT Count Towards the £1,000,000 Personal BR Allowance?
BR-qualifying investments (non-AIM) below the personal BR allowance receive 100% BR and will not pay any IHT. Above the personal BR allowance, the BR rate then reduces to 50% meaning IHT is paid at a rate of 20%. The £1m allowance relates to the total value of qualifying investments held, irrespective of provider.
Investments Above the Personal BR Allowance
Proportionate Inheritance Tax Liabilities
20% IHT on the £200,000 = a £40,000 IHT liability
When an IHT liability falls due and the client holds multiple investments, the liability is shared proportionately across each investment. Below we explore what this means using a practical worked example:
(£400,000/£1,200,000) = 33%. This means one third of the liability is owed from the £400,000 investment with provider B = approx. £13,333
Without BR-qualifying investments as part of his estate planning, Robin’s estate would have been liable for an IHT bill of £480,000 (40% of the full £1.2m).
Where do IHT liabilities on AIM listed investments feature?
From April 2026, AIM shares will incur 20% IHT irrespective of the amount held and they do not count towards the £1,000,000 personal BR allowance. This means that if Robin’s estate included a £500,000 AIM investment, there would be an additional £100,000 IHT owed on top of the amount outlined above.
Combining AIM listed investments and unquoted business company shares
It’s important to put the client investment objectives at the heart of estate planning, in order to ensure that the best outcomes are achieved. Whilst AIM listed investments may incur more IHT than unquoted shares it doesn’t mean they should be immediately discounted. AIM listed shares continue to provide a valuable source of diversification for clients in their wider portfolio holdings. For clients who are prioritising diversification alongside BR-qualifying status, a combination of AIM-listed shares and unquoted shares could prove to be a valuable combination. As the client approaches later life, the estate planning can be revised if the objective moves more towards achieving 100% BR in readiness for passing on as much wealth as possible to future generations. Replacement Property Relief can be used when moving between investments that both qualify for BR. Our nationwide team of Business Development Managers are on hand to deliver adviser and paraplanner training on how the new rules will impact replacements made before or after the April 2026 date. Please speak to one of our team to ensure you have all the information you need to provide an exceptional experience for your clients.
From April 2026, AIM shares qualify for 50% BR irrespective of the amount held, whilst unlisted trading company shares qualify for up to 100% BR. Individuals have a personal BR allowance within their estate of up to £1,000,000 for investments to be 100% free from IHT. Investments in unlisted companies, Enterprise Investment Scheme (EIS) Portfolios and BR-qualifying company assets (such as agricultural/ farms) contribute to an individual’s personal allowance. AIM listed shares are not included when assessing an individual's IHT personal allowance
usiness Relief (BR) has long been a valuable tool in estate planning, allowing investments in BR-qualifying companies to be passed on free from inheritance tax (IHT) to beneficiaries, provided the shares have been held for at least two years at the time of the investor’s death. Last year, the Autumn 2024 Budget announced changes to certain BR-qualifying investments. From April 2026, there will be a £1 million “Individual Business Relief Allowance,” combining BR and Agricultural Property Relief (APR), offering 100% relief on qualifying unquoted investments and agricultural assets. Assets above this threshold will receive 50% relief. AIM-listed shares will not benefit from the allowance, instead receiving 50% relief (i.e. an effective 20% inheritance tax rate will apply). Therefore, a married couple can pass up to £2 million in BR and APR assets free of inheritance tax, but unlike the nil rate band (NRB) and residence nil rate band (RNRB), this individual allowance is not transferable, so each person must use their own allowance to prevent it being lost.
By Octopus Investments
octopusinvestments.com support@octopusinvestments.com
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Disclaimer Business Relief investments are not suitable for everyone. Any recommendation should be based on a holistic review of your client's financial situation, objectives and needs. This communication does not constitute advice on investments, legal matters, taxation or any other matters. Personal opinions may change and should not be seen as advice or recommendation. Issued by Octopus Investments Limited, which is authorised and regulated by the Financial Conduct Authority. Registered office: 33 Holborn, London EC1N 2HT. Registered in England and Wales No. 03942880. Issued April 2025. CAM014603.
Qualifying investments in excess of £1 million
20%
Key risks of Business Relief-qualifying investments:
BR qualifying investments are high risk. The value of an investment, and any income from it, can fall as well as rise. Investors may not get back the full amount they invest. Tax treatment depends on individual circumstances and tax rules could change in the future. Tax relief depends on portfolio companies maintaining their qualifying status. The shares of smaller and unquoted companies could fall or rise in value more than other shares listed on the main market of the London Stock Exchange. They may also be harder to sell.
For professional advisers and paraplanners only. Not to be relied upon by retail clients.
You may want to explore our other client scenarios here Please note that the draft legislation surrounding these new rules has not been released yet. There is also an ongoing consultation that will conclude 23 April 2025 to explore how the new rules will interact with trust planning in particular. If you have any technical questions on this area of estate planning, please get in touch with your local BDM or use our estate planning helpdesk, Ask Octopus.
What next?
While changes are being made to the level of IHT relief available from April 2026, it’s reassuring to see the government’s commitment to the reliefs and the benefits these provide for investors and the UK economy. Moreover, whilst the 2025 Spring Statement did not bring any further increases in tax or changes to relief, the overall tax burden for investors is still high. In this environment, clients with over £1 million in BR assets still have planning opportunities worth exploring to manage the IHT burden.
What is the impact from the changes?
Inheritance Tax
Is there a benefit of undertaking today vs after April 2026?
Capital gains tax
Hold until death
No
Rebased
Exempt spousal transfer
No, however it is important to consider transfers that maximise the £1 million allowance between spouses
No capital gains tax
Lifetime gifts to spouses
Uses up the £1 million allowance in priority to the death estate; 20% charge (less taper relief for amounts above NRB) for gifts above £1 million
Payable on growth to the date of the gift and not rebased on death of the donor
Lifetime gifts of BR assets to children - death within seven years (failed PET)
£1 million allowance remains available to the death estate
Lifetime gifts of BR assets to children - survive seven years
0% Chargeable Lifetime Transfer (CLT) on transfer in. For unquoted shares, the intention is that it will use the allowance if death occurs within seven years
Yes - if the settlor survives seven years, it appears there will have been a benefit, as the allowance will not have been used on the transfer in. Benefit on transfer in as CLT will be reduced by 100%
Settlement in trust
Trusts created prior to or after 30 October 2024 have a £1 million allowance ongoing. Legislation is expected to split this allowance across multiple trusts created after 30 October by the same settlor.
N/A
Periodic trust charges
Undoubtedly, there will be clients who built their estate plans before the Autumn 2024 Budget, that incorporated BR planning. With the incoming changes, further lifetime planning for clients with BR and APR assets exceeding £1 million per person may be considered such as making lifetime gifts or transferring assets into trusts, to access the full BR benefit before the changes take effect. However, anti-forestalling measures introduced in the same Budget limit the effectiveness of some planning strategies. So what options are available? Here, we’ve summarised our expectations of the consequences of lifetime planning options enacted following the Budget for investments that exceed £1 million below.
Options when a client exceeds the £1 million allowance
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We are excited to launch a new webinar series designed to help financial advisers and paraplanners understand how Business Relief (BR) can play a valuable role in estate planning. Through a range of practical case studies, each session will bring BR planning strategies to life, highlighting real-world scenarios and the types of clients who may benefit. Each session is accredited for 30 minutes of structured CPD. All our webinars are recorded so if you are unable to attend, please register and we will share the recording with you to watch at your convenience. Discover details of the first two webinars in this informative series below.
time-investments.com questions@time-investments.com
Important information The information contained in this email does not constitute and should not be construed as constituting investment or any other advice by TIME. Past performance is not necessarily a guide to future performance and there is no guarantee that the target return objectives of TIME:Advance, TIME:AIM or TIME:CTC will be achieved; you should recognise that your clients' capital is at risk and investors may get back less than they invest. The levels and bases of, and reliefs from, taxation may change in the future. Any favourable tax treatment, such as Business Relief, is subject to Government legislation and as such may change. TIME Investments is a trading name of Alpha Real Property Investment Advisers LLP. TIME Investments is authorised and regulated by the Financial Conduct Authority (reference number: 534723). Registered Address: 338 Euston Road, London, NW1 3BG.
webinar 1
Maintain Access and Control
In this first session, we will explore how clients can retain access to and control over their capital while still benefiting from IHT relief using BR-qualifying investments.
12 june, 10:00 - 10:45 AM
Elizabeth Greene
Business Development Director, TIME Investments
Oliver Papa
Senior Business Development Manager, TIME Investments
Register here
Rupert Bloomfield
The second webinar focuses on how BR offers flexibility that can help reduce the burden on beneficiaries. Using case studies, we will demonstrate how BR investments can offer peace of mind and streamline estate management.
To Make Things Easier for Beneficiaries
webinar 2
24 june, 10:00 - 10:45 am
tom hardy
webinar
TIME Investments is an award-winning investment manager offering a range of IHT services and our team boasts an impressive track record of successfully achieving IHT savings. We manage over £1.5 billion of Business Relief investments for 10,000 private investors and business owners who are seeking to maximise the financial legacy they leave for future generations. We have one of the largest adviser support teams in our sector and we offer full regional coverage with dedicated points of contact. If you would like more information about any of our services, please speak to your local Business Development Manager who is always on hand to offer support and answer any questions you may have. For further information on TIME Investments and our range of services, please visit: time-investments.com
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A deeper dive into individual providers giving their input on particular market issues and more detail on the strategies and offerings they have developed to address them.
Provider spotlight emails
Our dedicated programme includes a variety of in-person and virtually hosted events, across the country. Supporting financial advisers and the tax planning community, we facilitate knowledge building of tax wrappers in a workshop environment. We host webinars and conferences that focus on specific areas of tax and estate planning, celebrating the role of the UK SME investment and finance communities through our annual Growth Investor Awards.
Awards, conferences, webinars and workshops
Our CPD tax planning online accreditation programme is aimed at regulated advisers, wealth managers, paraplanners, accountants and solicitors that require a recognised level of knowledge and understanding in EIS, SEIS, VCT and Business Relief. www.accreditation.intelligent-partnership.com
Accreditation
A weekly snapshot of the latest articles, commentary and market data for financial services professionals on tax efficient investment and estate planning. These are sent alongside our regular CPD emails, providing the opportunity to earn unstructured CPD time based on relevant articles and content provided by ourselves and external providers. Please retain a copy of all emails and publications to be able to claim unstructured CPD hours.
Weekly investment briefings
Free, award winning series including EIS, VCT, BR and AIM updates offering ongoing observations and intelligence, the latest thoughts and opinions of managers and providers, and a comparison of open investment opportunities. www.intelligent-partnership.com/ esearch-format/publications
Quarterly industry updates
We welcome any feedback on our resources. Please send an email to publications@intelligent-partnership.com
