Tax Efficient

As we look towards the next Autumn Statement, speculation surrounding mammoth holes in public finances and what the new Labour government might do about them is inevitably mounting. Unsurprisingly, Inheritance Tax (IHT) has once again come under the spotlight as a means of topping up the Treasury’s coffers. This being said, IHT is certainly not going away and nothing is currently confirmed, so when it comes to estate planning, inaction comes with a price. HMRC’s latest statistics show a record IHT take of £5.99 billion in 2021/22, a 4% increase from the previous year, driven by wealth transfers and rising asset values. Projections by the Office for Budget Responsibility suggest IHT could reach £9.7 billion by 2028/29. This latest industry update therefore comes at a critical time to help the financial planning community navigate the landscape with all the latest technical insights and knowledge.

Active investment managers like RBC BlueBay use their experience of reading and interpreting economic data accurately to give direction on the most attractive asset class at any given point in time. In collaboration with Intelligent Partnership and our valued and distinguished contributors, we are pleased to share our latest guide, ‘Opportunities in investment grade bonds’. We delve into some interesting and pertinent areas such as Pointers for IFAs when considering investment grade bonds, Spread differentials in Investment Grade portfolios, The value in Financials and much more.

Since our latest update, Inheritance Tax (IHT) receipts have continued to surge, with HMRC reporting an unprecedented £7.5bn collected between April 2023 and March 2024. With nil rate bands frozen until 2028, more individuals are at risk of falling into the IHT net in the coming years. As a result, many clients may not fully grasp their IHT obligations, particularly in today’s challenging economic climate.

Business Relief remains a cornerstone of effective IHT planning, offering clients flexibility and control. It’s a vast marketplace with a large number of BR investment managers offering a wide range of objectives, investment strategies and risk profiles. This industry update helps you navigate the technical information and knowledge required, as well as provide valuable insights from prominent BR managers.

Brought to you in partnership with TIME Investments, the latest practical updates, thought leadership and under-the-bonnet insights of BR.
The latest rules and technical insights are supplemented with a deep dive into how the Consumer Duty impacts recommendations for BR products. We also take a closer look at AIM BR and have refreshed the case studies with ideas about BR planning solutions in the current context.

With the invaluable collaboration from several subject matter experts, we hope you find this guide helpful as you navigate the practical and regulatory aspects of BR by keeping your knowledge current and considering the pros and cons of a BR investment when it might play a part in the journey to the best outcomes for each of your individual clients.

A collective sigh of relief could be heard when the Chancellor Jeremy Hunt extended the sunset clause for both EIS and VCTs to 2035. This extension significantly underscores the importance of the tax-advantaged investment market, which has come on leaps and bounds during the past 15 years.

With tax-year-end just around the corner, we bring you this new bumper edition report of the EIS and VCT market landscape to arm you with the necessary up-to-date knowledge you need for any last minute conversations with clients. Plus, we dive into expert insights from a broader cross-section of the tax-advantaged market to hear different manager’s strategies and perspectives.

Business relief (BR) has become increasingly more relevant in the current financial climate and now is a great time to talk to your clients about it. 

In our latest BR update we feature a range of pieces from thought leadership articles on everything from evolving economic conditions to AIM performance and stock selection to advice-based pieces on common estate planning scenarios.  

Don’t forget you can also claim up to two hours CPD for reading the update, which is free to access here.

The latest EIS update comes in the wake of the welcome news from the
Chancellor’s Autumn Statement of an extension to the EIS (and VCTs),
news that has lightened the load of the industry.
In this edition we feature a range of EIS managers discussing some of
key opportunities and challenges in the current market. We also link
to a couple of fascinating expert video interviews.

Don’t forget you can also claim up to two hours CPD for reading the
update, which is free to access here.

Understanding how to make the most of the Business Relief growth opportunity and deliver good outcomes for clients is examined closely in The inheritance tax net is widening and growing your estate planning business is a key opportunity.

One prominent manager makes a case for the value to be found in small-cap stocks and answers some of the questions facing the AIM market at the moment in Have smaller companies reached their turning point?

In collaboration with Julia Dreblow of SRI Services who has served as co-author and our distinguished contributors, this guide considers the incorporation of ESG into fixed income approaches. It is specifically targeted at financial advisers, in whose hands, so much control of the destination of UK investment sits.

Yet, while bonds are an important component of most of their client portfolios, there is a common misconception among advisers that all fixed income encompassing ESG elements is difficult, limited and compromised by under-performance.

The Venture Capital Trust (VCT) fundraising season has finally kicked off and the market has witnessed a flurry of VCT managers launching their latest share offerings for the 2023-2024 tax year in recent weeks. This industry update comes at a key time where we take a look at what’s happening in the sector, as well as provide you with valuable insights from prominent VCT managers to arm you with all the knowledge you need when talking to your clients.