To kick things off, the panel was asked to explore

• What are the latest developments in inheritance tax reliefs? 
• How do pensions now fit into IHT planning, post-Budget?
• What role can tax-advantaged investments like EIS, VCTs and Business Relief play?
• What practical tools and research can advisers use to support client recommendations?

Q: What’s new with Business Relief, and how is it evolving?

James Ramsay explained that Business Relief (BR), which began in 1976 to protect family businesses from being broken up to pay inheritance tax, has since broadened to include a wide range of trading businesses. However, certain sectors remain excluded, and investors must hold qualifying assets for at least two years. James noted a coming change from April 2026: private companies will receive 100% BR only on the first £1m of investment per individual (£2m for couples); anything above will only get 50% relief. AIM shares will also only get 50% relief.

Q: What about agricultural property and pension changes?

Billy Brown raised the growing complexity of planning due to Budget changes. From 2026, agricultural and business reliefs will be combined into a single allowance, potentially complicating spousal transfers and asset planning. On pensions, Billy highlighted the shift: while previously outside IHT, pensions will now be brought within the estate for IHT from 2027. This has created a need to pause and reassess strategies with clients, considering options like trusts, BR, and EIS to mitigate future liabilities.

Q: What role does EIS play in estate and tax planning?

Susie Harris outlined the five tax reliefs available through the Enterprise Investment Scheme (EIS): 30% income tax relief, CGT deferral and disposal relief, IHT exemption after two years, and loss relief. EIS is increasingly relevant for high earners and those in retirement who are looking for both tax efficiency and growth. Her firm, Parkwalk Advisors, invests in UK university spin-outs working on deep tech solutions to global problems.

Q: Are VCTs a viable alternative?

Mark O’Donnell clarified that while Venture Capital Trusts (VCTs) don’t offer BR or loss relief like EIS, they do provide 30% income tax relief and tax-free dividends and can form part of a client’s retirement income strategy. The minimum holding period is five years, and can be used to generate tax-efficient income in retirement.

Q: What about the practicalities of client planning and research?

Mark O’Donnell, from MICAP, emphasized the long-term nature of tax-advantaged investments - given the minimum holding periods to ensure reliefs and in practice such investments extend beyond these periods. MICAP offers a whole-of-market view across BR, EIS, and VCTs, providing performance data, impact scores, and due diligence to help advisers recommend suitable products. He stressed the importance of documenting advice and ensuring that managers provide not only investment performance. Billy and James also agree that for BR services the post-death support provided by managers is also an important consideration.

Q: How should advisers approach diversification in estate planning?

Billy encouraged clients to diversify across sectors and managers, mentioning property, renewables, forestry, and storage as examples. He also underscored the behavioural aspect - clients must feel comfortable with fund managers.

Final Thought:

With big legislative changes coming to pensions and inheritance tax in 2026 and 2027, the panel agreed that advisers will need to be fully aware of the final legislations when they are announced, fully research the strategies and managers in the sectors, look to to diversify clients, and engage clients in detailed, personalised planning. Whether through BR, EIS, VCTs, or trust structures, it's clear that no one-size-fits-all approach exists - only informed, evolving advice.