Welcome to the Adviser Education Hub
This Hub has been designed for investment professionals only.
To get started, please confirm that you are an investment professional.
Disclaimer
By clicking below, you confirm that you are an investment professional authorised by the FCA. Once you confirm, you will be able to access the Hub. If you do not meet these criteria, please return to our main website.
Post learning assessment
Test your knowledge by taking our assessment below. Then claim your CPD certificate.
Claim your CPD Certificate
Complete the form below to secure your Continuing Professional Development (CPD) certificate.
Claim your CPD Certificate
Complete the form below to secure your Continuing Professional Development (CPD) certificate.
Claim your CPD Certificate
Complete the form below to secure your Continuing Professional Development (CPD) certificate.
Inheritance Tax, pensions and the waiting game: Conversations to have now
With Inheritance Tax expanding and pensions coming into scope, now is the time for advisers to engage clients. Discover how to turn uncertainty into opportunity with strategic estate planning conversations.
As the skies darken and the nights draw in across Britain, households have been forced into a rather unpleasant waiting game. Dour news is surely coming out of 11 Downing Street and the Chancellor all but confirmed that by saying she would “deal with the world as I find it, not the world as I might wish it to be”.
While newspapers predict the government will need to find at least an additional £30 billion in its Autumn Budget due to higher-than-expected borrowing, how exactly it will do so is the operative question. Uncertainty and speculation rule as we approach the November budget; however, this presents wealth and planning professionals with a strategic window for substantive conversations with clients old and new.
Don’t treat this period as an extended waiting game. Instead, smart advisers will take what is already known and use it as a basis to reach out to clients, seize opportunities, add value, and even grow their client base.
What we know
Deadlines are rapidly approaching for tax and investment changes from the last budget. Several measures are now locked in – sharply expanding who will potentially have Inheritance Tax (IHT) liabilities. All pensions will now be treated as part of the taxable estate, with transfers after death subject to the standard 40% IHT rate (excluding existing nil-rate bands).
The nil-rate band and residence nil-rate band will remain frozen until April 2030, pulling more estates into scope as asset values rise. The Office for Budget Responsibility (OBR) modelling suggests that by 2028/2029, 6.3% of estates could face a liability, raising around £9 billion using 2023/2024 prices.
Business Relief (BR), which allows qualifying unquoted or AIM-listed shares to be passed on free of Inheritance Tax after two years, has also been overhauled. From April 2026, a £1 million allowance (combining Business Relief and Agricultural Property Relief assets) will apply for 100% BR, benefiting from complete IHT exemption. Above this allowance, 50% relief will be available, offering an effective IHT rate of 20%.
AIM-quoted BR-qualifying shares, which previously qualified for 100% relief after two years, will move to 50% relief with an effective IHT rate of 20%. There will be no limit or allowance on the amount invested.
Smart advisory firms should identify those newly impacted by IHT and explain the potential consequences for estate planning. They represent both a significant opportunity for proactive advisers – a headline reason to have a meaningful discussion about planning.
In determining an outreach strategy, advisers can divide those affected by these changes into two broad categories:
- Those who already have a relationship with an adviser
- Those who do not have a relationship with an adviser
What does this mean for clients with an existing relationship with an adviser?
Advice is already the norm for the wealthy
Research shows that roughly 73% of UK millionaire households engage a financial adviser – a clear sign that the wealthiest segment is already professionally managed when it comes to wealth planning. But no matter how extensive the relationship is, further conversations are now needed.
According to Downing research, 94% of advisers report a rise in IHT-planning enquiries, 76% say clients are making surplus-income gifts to reduce future IHT, and 47% say clients are even cutting pension contributions in favour of IHT solutions. A Schroders survey found almost all advisers (92%) are now reviewing client circumstances and wealth transfer plans. FTAdviser said this constituted the “most significant adviser planning shifts in decades”.
The immediate priorities are clear. Advisers can map affected clients, segment them by age and risk profile, and invite them virtually or in person to discuss exposure and options. Even where estate planning strategies are already in place, these will need to be reviewed in light of changes to ensure these are still appropriate for clients’ circumstances and objectives.
Advisers should revisit gifting strategies while existing exemptions remain. Under current rules, outright gifts to individuals are treated as Potentially Exempt Transfers (PETs): if the donor survives seven years after the gift, no Inheritance Tax is due. If death occurs within that window, taper relief reduces the effective rate on a sliding scale after the third year.
Why timing matters more than ever
Clients may also consider drawing tax-free lump sums from defined-contribution pensions and making gifts ahead of April 2027 to use today’s rules while they still apply – a step that several firms, including Charles Russell Speechlys, have described as “a prudent defensive measure.”
What this means for clients who don’t have an advisory relationship
Why wealth doesn’t always mean advice
It’s easy to caricature those without financial advisers as foolhardy or complacent. In reality, there are valid reasons why even individuals with seven-figure balance sheets have not yet engaged a professional planner.
The strong performance of UK property and global equity markets over the past decade has lifted the notional wealth of middle-aged professionals who still see themselves as “comfortable” rather than wealthy. Many simply do not recognise that they are liable to IHT. According to the OBR, the freezing of income-tax thresholds will bring nearly 4 million additional taxpayers into the system between 2022-23 and 2028-29 – a phenomenon known as ‘fiscal drag’. Meanwhile, the nil-rate band for Inheritance Tax remains frozen at £325,000 until at least 2029-30, meaning more estates will owe tax solely due to inflation-driven asset growth.
The hidden cost of going alone
But that misunderstanding can be costly in the current environment. The difference between engaging and not engaging an adviser can run into hundreds of thousands of pounds. According to research from the Financial Conduct Authority (FCA), households that receive professional financial advice accumulate on average around 10% more wealth than comparable households that do not – evidence that timely guidance can materially improve long-term financial outcomes.
Engagement also carries benefits beyond tax efficiency. It creates a bridge to the next generation of clients. Research from Nuveen found that 64% of heirs who are introduced to the family adviser before inheriting assets choose to retain that adviser, compared with far lower retention rates when no prior relationship exists.
Estate planning needs to shift from being a ‘death-bed’ discussion to one that begins years earlier. While many still delay formal plans into their late 50s or beyond (studies put the average age of will-makers at around 58), research shows that the average age at which people actually receive inheritance is in their mid-50s.
For advisory firms, this is the overlooked dividend of estate planning: every conversation about legacy is also a conversation about continuity. Ensure beneficiaries understand the benefits of comprehensive tax planning and how it can be applied intergenerationally. People tend to stay with those who have demonstrably saved them multiples of their fees – and that trust, once earned, can extend through generations.
What can benefit advisers and clients alike: more choice
One of the most effective ways to strengthen relationships is by offering real choice. Too often, planning has been delivered as a verdict – the adviser reviews the figures and prescribes a single course of action. While technically sound, that approach strips clients of agency.
Downing has embedded the philosophy of choice into its estate-planning range. Rather than funnelling every investor into a single structure, it provides a framework that matches risk, time horizon and estate objectives through three distinct tiers:
Downing Estate Planning Service: a capital preservation service targeting 3% – 4.5% returns (net of Downing ongoing fees), investing in established UK trading businesses with strong asset-backing in addition to Business Relief qualification.
Downing Growth Estate Planning Service: a growth-oriented service targeting 5% – 7% returns (net of Downing ongoing fees), investing in scalable UK businesses with the potential for higher capital appreciation over the medium to long term in addition to Business Relief qualification.
Downing AIM Estate Planning Service: a growth focused service investing in a diversified portfolio of 25 - 40 AIM companies. The approach can help spread risk and balance a portfolio, reducing reliance on any one single investment.
Together, these tiers allow advisers to tailor portfolios that align with each client’s circumstances – whether preserving wealth for the next generation, financial considerations ahead of retirement, or seeking long-term growth within a tried and tested estate-planning structure. This flexibility makes Business Relief more accessible to a wider group of clients, accommodating different levels of wealth, experience and risk appetite.
It turns estate planning, whether with new or existing clients, from a prescriptive exercise into a collaborative one, where advisers can demonstrate value by giving clients genuine, informed choice.
Conclusion: Seizing the window before the storm
The coming months are a period for action, not observation. The shape of future tax policy may remain uncertain, but the direction is unmistakable. With Inheritance Tax expanding, pensions coming into scope, and Business Relief redefined, delay is fast becoming the costliest decision of all.
Early preparation brings two clear advantages. It positions clients ahead of announced rules and builds resilience for whatever follows. Active relationships can adapt smoothly to the next set of changes. The Chancellor may yet again promise no further tax rises in this Parliament, but fiscal history – and the scale of current economic pressures – points to her inability to offer certainty. And not all decisions may be negative: mooted reforms to AIM may create new opportunities.
Estate planning at its best creates enduring structures that protect wealth and sustain family relationships across generations. Every client needs a plan grounded in today’s realities with the ability to adapt to what comes next. Advisers who start consultations now will be the ones their clients remember when the dust finally settles.
This article was written by:
Nick Priest
Join us on 2 December for our Autumn Budget webinar
Following the Government’s much-anticipated Autumn Budget, we understand that you or your clients may have questions about any changes announced and their impact. Join our live post-Budget webinar, where we will unpack all your questions and more with our panel of experts.
Our panel will be hosted by Nick Priest, Partner and Head of Strategic Partnerships at Downing. Nick will be speaking to Judith MacKenzie, Partner and Head of Downing Fund Managers, Tony Wickenden, Managing Director at Technical Connection, and Claire Trott, Director and Pensions Expert at Technical Connection.
Important notice
Opinions expressed represent the views of the author at the time of publication, are subject to change, and should not be interpreted as investment or tax advice.
Whilst care has been taken in compiling this content, no representation or warranty, express or implied, is made by Downing as to its accuracy or completeness, including for external sources (which may have been used) which have not been verified.
This article has been approved and issued as a financial promotion. Capital is at risk. Tax treatment is dependent on the individual circumstances of each investor and may be subject to change in the future. Downing is a trading name of Downing LLP. Any personal opinions expressed are the views of the Downing representative at the time of publication and are subject to change and should not be interpreted as advice. Downing LLP is authorised and regulated by the Financial Conduct Authority (Firm Reference No. 545025). Registered in England and Wales (No. OC341575). Registered Office: 10 Lower Thames Street London EC3R 6AF.
Claim your CPD Certificate
Complete the form below to secure your Continuing Professional Development (CPD) certificate.
Inheritance Tax, pensions and the waiting game: Conversations to have now
With Inheritance Tax expanding and pensions coming into scope, now is the time for advisers to engage clients. Discover how to turn uncertainty into opportunity with strategic estate planning conversations.
As the skies darken and the nights draw in across Britain, households have been forced into a rather unpleasant waiting game. Dour news is surely coming out of 11 Downing Street and the Chancellor all but confirmed that by saying she would “deal with the world as I find it, not the world as I might wish it to be”.
While newspapers predict the government will need to find at least an additional £30 billion in its Autumn Budget due to higher-than-expected borrowing, how exactly it will do so is the operative question. Uncertainty and speculation rule as we approach the November budget; however, this presents wealth and planning professionals with a strategic window for substantive conversations with clients old and new.
Don’t treat this period as an extended waiting game. Instead, smart advisers will take what is already known and use it as a basis to reach out to clients, seize opportunities, add value, and even grow their client base.
What we know
Deadlines are rapidly approaching for tax and investment changes from the last budget. Several measures are now locked in – sharply expanding who will potentially have Inheritance Tax (IHT) liabilities. All pensions will now be treated as part of the taxable estate, with transfers after death subject to the standard 40% IHT rate (excluding existing nil-rate bands).
The nil-rate band and residence nil-rate band will remain frozen until April 2030, pulling more estates into scope as asset values rise. The Office for Budget Responsibility (OBR) modelling suggests that by 2028/2029, 6.3% of estates could face a liability, raising around £9 billion using 2023/2024 prices.
Business Relief (BR), which allows qualifying unquoted or AIM-listed shares to be passed on free of Inheritance Tax after two years, has also been overhauled. From April 2026, a £1 million allowance (combining Business Relief and Agricultural Property Relief assets) will apply for 100% BR, benefiting from complete IHT exemption. Above this allowance, 50% relief will be available, offering an effective IHT rate of 20%.
AIM-quoted BR-qualifying shares, which previously qualified for 100% relief after two years, will move to 50% relief with an effective IHT rate of 20%. There will be no limit or allowance on the amount invested.
Smart advisory firms should identify those newly impacted by IHT and explain the potential consequences for estate planning. They represent both a significant opportunity for proactive advisers – a headline reason to have a meaningful discussion about planning.
In determining an outreach strategy, advisers can divide those affected by these changes into two broad categories:
- Those who already have a relationship with an adviser
- Those who do not have a relationship with an adviser
What does this mean for clients with an existing relationship with an adviser?
Advice is already the norm for the wealthy
Research shows that roughly 73% of UK millionaire households engage a financial adviser – a clear sign that the wealthiest segment is already professionally managed when it comes to wealth planning. But no matter how extensive the relationship is, further conversations are now needed.
According to Downing research, 94% of advisers report a rise in IHT-planning enquiries, 76% say clients are making surplus-income gifts to reduce future IHT, and 47% say clients are even cutting pension contributions in favour of IHT solutions. A Schroders survey found almost all advisers (92%) are now reviewing client circumstances and wealth transfer plans. FTAdviser said this constituted the “most significant adviser planning shifts in decades”.
The immediate priorities are clear. Advisers can map affected clients, segment them by age and risk profile, and invite them virtually or in person to discuss exposure and options. Even where estate planning strategies are already in place, these will need to be reviewed in light of changes to ensure these are still appropriate for clients’ circumstances and objectives.
Advisers should revisit gifting strategies while existing exemptions remain. Under current rules, outright gifts to individuals are treated as Potentially Exempt Transfers (PETs): if the donor survives seven years after the gift, no Inheritance Tax is due. If death occurs within that window, taper relief reduces the effective rate on a sliding scale after the third year.
Why timing matters more than ever
Clients may also consider drawing tax-free lump sums from defined-contribution pensions and making gifts ahead of April 2027 to use today’s rules while they still apply – a step that several firms, including Charles Russell Speechlys, have described as “a prudent defensive measure.”
What this means for clients who don’t have an advisory relationship
Why wealth doesn’t always mean advice
It’s easy to caricature those without financial advisers as foolhardy or complacent. In reality, there are valid reasons why even individuals with seven-figure balance sheets have not yet engaged a professional planner.
The strong performance of UK property and global equity markets over the past decade has lifted the notional wealth of middle-aged professionals who still see themselves as “comfortable” rather than wealthy. Many simply do not recognise that they are liable to IHT. According to the OBR, the freezing of income-tax thresholds will bring nearly 4 million additional taxpayers into the system between 2022-23 and 2028-29 – a phenomenon known as ‘fiscal drag’. Meanwhile, the nil-rate band for Inheritance Tax remains frozen at £325,000 until at least 2029-30, meaning more estates will owe tax solely due to inflation-driven asset growth.
The hidden cost of going alone
But that misunderstanding can be costly in the current environment. The difference between engaging and not engaging an adviser can run into hundreds of thousands of pounds. According to research from the Financial Conduct Authority (FCA), households that receive professional financial advice accumulate on average around 10% more wealth than comparable households that do not – evidence that timely guidance can materially improve long-term financial outcomes.
Engagement also carries benefits beyond tax efficiency. It creates a bridge to the next generation of clients. Research from Nuveen found that 64% of heirs who are introduced to the family adviser before inheriting assets choose to retain that adviser, compared with far lower retention rates when no prior relationship exists.
Estate planning needs to shift from being a ‘death-bed’ discussion to one that begins years earlier. While many still delay formal plans into their late 50s or beyond (studies put the average age of will-makers at around 58), research shows that the average age at which people actually receive inheritance is in their mid-50s.
For advisory firms, this is the overlooked dividend of estate planning: every conversation about legacy is also a conversation about continuity. Ensure beneficiaries understand the benefits of comprehensive tax planning and how it can be applied intergenerationally. People tend to stay with those who have demonstrably saved them multiples of their fees – and that trust, once earned, can extend through generations.
What can benefit advisers and clients alike: more choice
One of the most effective ways to strengthen relationships is by offering real choice. Too often, planning has been delivered as a verdict – the adviser reviews the figures and prescribes a single course of action. While technically sound, that approach strips clients of agency.
Downing has embedded the philosophy of choice into its estate-planning range. Rather than funnelling every investor into a single structure, it provides a framework that matches risk, time horizon and estate objectives through three distinct tiers:
Downing Estate Planning Service: a capital preservation service targeting 3% – 4.5% returns (net of Downing ongoing fees), investing in established UK trading businesses with strong asset-backing in addition to Business Relief qualification.
Downing Growth Estate Planning Service: a growth-oriented service targeting 5% – 7% returns (net of Downing ongoing fees), investing in scalable UK businesses with the potential for higher capital appreciation over the medium to long term in addition to Business Relief qualification.
Downing AIM Estate Planning Service: a growth focused service investing in a diversified portfolio of 25 - 40 AIM companies. The approach can help spread risk and balance a portfolio, reducing reliance on any one single investment.
Together, these tiers allow advisers to tailor portfolios that align with each client’s circumstances – whether preserving wealth for the next generation, financial considerations ahead of retirement, or seeking long-term growth within a tried and tested estate-planning structure. This flexibility makes Business Relief more accessible to a wider group of clients, accommodating different levels of wealth, experience and risk appetite.
It turns estate planning, whether with new or existing clients, from a prescriptive exercise into a collaborative one, where advisers can demonstrate value by giving clients genuine, informed choice.
Conclusion: Seizing the window before the storm
The coming months are a period for action, not observation. The shape of future tax policy may remain uncertain, but the direction is unmistakable. With Inheritance Tax expanding, pensions coming into scope, and Business Relief redefined, delay is fast becoming the costliest decision of all.
Early preparation brings two clear advantages. It positions clients ahead of announced rules and builds resilience for whatever follows. Active relationships can adapt smoothly to the next set of changes. The Chancellor may yet again promise no further tax rises in this Parliament, but fiscal history – and the scale of current economic pressures – points to her inability to offer certainty. And not all decisions may be negative: mooted reforms to AIM may create new opportunities.
Estate planning at its best creates enduring structures that protect wealth and sustain family relationships across generations. Every client needs a plan grounded in today’s realities with the ability to adapt to what comes next. Advisers who start consultations now will be the ones their clients remember when the dust finally settles.
This article was written by:
Nick Priest
Join us on 2 December for our Autumn Budget webinar
Following the Government’s much-anticipated Autumn Budget, we understand that you or your clients may have questions about any changes announced and their impact. Join our live post-Budget webinar, where we will unpack all your questions and more with our panel of experts.
Our panel will be hosted by Nick Priest, Partner and Head of Strategic Partnerships at Downing. Nick will be speaking to Judith MacKenzie, Partner and Head of Downing Fund Managers, Tony Wickenden, Managing Director at Technical Connection, and Claire Trott, Director and Pensions Expert at Technical Connection.
Important notice
Opinions expressed represent the views of the author at the time of publication, are subject to change, and should not be interpreted as investment or tax advice.
Whilst care has been taken in compiling this content, no representation or warranty, express or implied, is made by Downing as to its accuracy or completeness, including for external sources (which may have been used) which have not been verified.
This article has been approved and issued as a financial promotion. Capital is at risk. Tax treatment is dependent on the individual circumstances of each investor and may be subject to change in the future. Downing is a trading name of Downing LLP. Any personal opinions expressed are the views of the Downing representative at the time of publication and are subject to change and should not be interpreted as advice. Downing LLP is authorised and regulated by the Financial Conduct Authority (Firm Reference No. 545025). Registered in England and Wales (No. OC341575). Registered Office: 10 Lower Thames Street London EC3R 6AF.
Claim your CPD Certificate
Complete the form below to secure your Continuing Professional Development (CPD) certificate.
Claim your CPD Certificate
Complete the form below to secure your Continuing Professional Development (CPD) certificate.
Claim your CPD Certificate
Complete the form below to secure your Continuing Professional Development (CPD) certificate.
Claim your CPD Certificate
Complete the form below to secure your Continuing Professional Development (CPD) certificate.
As the skies darken and the nights draw in across Britain, households have been forced into a rather unpleasant waiting game. Dour news is surely coming out of 11 Downing Street and the Chancellor all but confirmed that by saying she would “deal with the world as I find it, not the world as I might wish it to be”.
While newspapers predict the government will need to find at least an additional £30 billion in its Autumn Budget due to higher-than-expected borrowing, how exactly it will do so is the operative question. Uncertainty and speculation rule as we approach the November budget; however, this presents wealth and planning professionals with a strategic window for substantive conversations with clients old and new.
Don’t treat this period as an extended waiting game. Instead, smart advisers will take what is already known and use it as a basis to reach out to clients, seize opportunities, add value, and even grow their client base.
What we know
Deadlines are rapidly approaching for tax and investment changes from the last budget. Several measures are now locked in – sharply expanding who will potentially have Inheritance Tax (IHT) liabilities. All pensions will now be treated as part of the taxable estate, with transfers after death subject to the standard 40% IHT rate (excluding existing nil-rate bands).
The nil-rate band and residence nil-rate band will remain frozen until April 2030, pulling more estates into scope as asset values rise. The Office for Budget Responsibility (OBR) modelling suggests that by 2028/2029, 6.3% of estates could face a liability, raising around £9 billion using 2023/2024 prices.
Business Relief (BR), which allows qualifying unquoted or AIM-listed shares to be passed on free of Inheritance Tax after two years, has also been overhauled. From April 2026, a £1 million allowance (combining Business Relief and Agricultural Property Relief assets) will apply for 100% BR, benefiting from complete IHT exemption. Above this allowance, 50% relief will be available, offering an effective IHT rate of 20%.
AIM-quoted BR-qualifying shares, which previously qualified for 100% relief after two years, will move to 50% relief with an effective IHT rate of 20%. There will be no limit or allowance on the amount invested.
Smart advisory firms should identify those newly impacted by IHT and explain the potential consequences for estate planning. They represent both a significant opportunity for proactive advisers – a headline reason to have a meaningful discussion about planning.
In determining an outreach strategy, advisers can divide those affected by these changes into two broad categories:
- Those who already have a relationship with an adviser
- Those who do not have a relationship with an adviser
What does this mean for clients with an existing relationship with an adviser?
Advice is already the norm for the wealthy
Research shows that roughly 73% of UK millionaire households engage a financial adviser – a clear sign that the wealthiest segment is already professionally managed when it comes to wealth planning. But no matter how extensive the relationship is, further conversations are now needed.
According to Downing research, 94% of advisers report a rise in IHT-planning enquiries, 76% say clients are making surplus-income gifts to reduce future IHT, and 47% say clients are even cutting pension contributions in favour of IHT solutions. A Schroders survey found almost all advisers (92%) are now reviewing client circumstances and wealth transfer plans. FTAdviser said this constituted the “most significant adviser planning shifts in decades”.
The immediate priorities are clear. Advisers can map affected clients, segment them by age and risk profile, and invite them virtually or in person to discuss exposure and options. Even where estate planning strategies are already in place, these will need to be reviewed in light of changes to ensure these are still appropriate for clients’ circumstances and objectives.
Advisers should revisit gifting strategies while existing exemptions remain. Under current rules, outright gifts to individuals are treated as Potentially Exempt Transfers (PETs): if the donor survives seven years after the gift, no Inheritance Tax is due. If death occurs within that window, taper relief reduces the effective rate on a sliding scale after the third year.
Why timing matters more than ever
Clients may also consider drawing tax-free lump sums from defined-contribution pensions and making gifts ahead of April 2027 to use today’s rules while they still apply – a step that several firms, including Charles Russell Speechlys, have described as “a prudent defensive measure.”
What this means for clients who don’t have an advisory relationship
Why wealth doesn’t always mean advice
It’s easy to caricature those without financial advisers as foolhardy or complacent. In reality, there are valid reasons why even individuals with seven-figure balance sheets have not yet engaged a professional planner.
The strong performance of UK property and global equity markets over the past decade has lifted the notional wealth of middle-aged professionals who still see themselves as “comfortable” rather than wealthy. Many simply do not recognise that they are liable to IHT. According to the OBR, the freezing of income-tax thresholds will bring nearly 4 million additional taxpayers into the system between 2022-23 and 2028-29 – a phenomenon known as ‘fiscal drag’. Meanwhile, the nil-rate band for Inheritance Tax remains frozen at £325,000 until at least 2029-30, meaning more estates will owe tax solely due to inflation-driven asset growth.
The hidden cost of going alone
But that misunderstanding can be costly in the current environment. The difference between engaging and not engaging an adviser can run into hundreds of thousands of pounds. According to research from the Financial Conduct Authority (FCA), households that receive professional financial advice accumulate on average around 10% more wealth than comparable households that do not – evidence that timely guidance can materially improve long-term financial outcomes.
Engagement also carries benefits beyond tax efficiency. It creates a bridge to the next generation of clients. Research from Nuveen found that 64% of heirs who are introduced to the family adviser before inheriting assets choose to retain that adviser, compared with far lower retention rates when no prior relationship exists.
Estate planning needs to shift from being a ‘death-bed’ discussion to one that begins years earlier. While many still delay formal plans into their late 50s or beyond (studies put the average age of will-makers at around 58), research shows that the average age at which people actually receive inheritance is in their mid-50s.
For advisory firms, this is the overlooked dividend of estate planning: every conversation about legacy is also a conversation about continuity. Ensure beneficiaries understand the benefits of comprehensive tax planning and how it can be applied intergenerationally. People tend to stay with those who have demonstrably saved them multiples of their fees – and that trust, once earned, can extend through generations.
What can benefit advisers and clients alike: more choice
One of the most effective ways to strengthen relationships is by offering real choice. Too often, planning has been delivered as a verdict – the adviser reviews the figures and prescribes a single course of action. While technically sound, that approach strips clients of agency.
Downing has embedded the philosophy of choice into its estate-planning range. Rather than funnelling every investor into a single structure, it provides a framework that matches risk, time horizon and estate objectives through three distinct tiers:
Downing Estate Planning Service: a capital preservation service targeting 3% – 4.5% returns (net of Downing ongoing fees), investing in established UK trading businesses with strong asset-backing in addition to Business Relief qualification.
Downing Growth Estate Planning Service: a growth-oriented service targeting 5% – 7% returns (net of Downing ongoing fees), investing in scalable UK businesses with the potential for higher capital appreciation over the medium to long term in addition to Business Relief qualification.
Downing AIM Estate Planning Service: a growth focused service investing in a diversified portfolio of 25 - 40 AIM companies. The approach can help spread risk and balance a portfolio, reducing reliance on any one single investment.
Together, these tiers allow advisers to tailor portfolios that align with each client’s circumstances – whether preserving wealth for the next generation, financial considerations ahead of retirement, or seeking long-term growth within a tried and tested estate-planning structure. This flexibility makes Business Relief more accessible to a wider group of clients, accommodating different levels of wealth, experience and risk appetite.
It turns estate planning, whether with new or existing clients, from a prescriptive exercise into a collaborative one, where advisers can demonstrate value by giving clients genuine, informed choice.
Conclusion: Seizing the window before the storm
The coming months are a period for action, not observation. The shape of future tax policy may remain uncertain, but the direction is unmistakable. With Inheritance Tax expanding, pensions coming into scope, and Business Relief redefined, delay is fast becoming the costliest decision of all.
Early preparation brings two clear advantages. It positions clients ahead of announced rules and builds resilience for whatever follows. Active relationships can adapt smoothly to the next set of changes. The Chancellor may yet again promise no further tax rises in this Parliament, but fiscal history – and the scale of current economic pressures – points to her inability to offer certainty. And not all decisions may be negative: mooted reforms to AIM may create new opportunities.
Estate planning at its best creates enduring structures that protect wealth and sustain family relationships across generations. Every client needs a plan grounded in today’s realities with the ability to adapt to what comes next. Advisers who start consultations now will be the ones their clients remember when the dust finally settles.
This article was written by:
Nick Priest
Join us on 2 December for our Autumn Budget webinar
Following the Government’s much-anticipated Autumn Budget, we understand that you or your clients may have questions about any changes announced and their impact. Join our live post-Budget webinar, where we will unpack all your questions and more with our panel of experts.
Our panel will be hosted by Nick Priest, Partner and Head of Strategic Partnerships at Downing. Nick will be speaking to Judith MacKenzie, Partner and Head of Downing Fund Managers, Tony Wickenden, Managing Director at Technical Connection, and Claire Trott, Director and Pensions Expert at Technical Connection.
Important notice
Opinions expressed represent the views of the author at the time of publication, are subject to change, and should not be interpreted as investment or tax advice.
Whilst care has been taken in compiling this content, no representation or warranty, express or implied, is made by Downing as to its accuracy or completeness, including for external sources (which may have been used) which have not been verified.
This article has been approved and issued as a financial promotion. Capital is at risk. Tax treatment is dependent on the individual circumstances of each investor and may be subject to change in the future. Downing is a trading name of Downing LLP. Any personal opinions expressed are the views of the Downing representative at the time of publication and are subject to change and should not be interpreted as advice. Downing LLP is authorised and regulated by the Financial Conduct Authority (Firm Reference No. 545025). Registered in England and Wales (No. OC341575). Registered Office: 10 Lower Thames Street London EC3R 6AF.
Claim your CPD Certificate
Complete the form below to secure your Continuing Professional Development (CPD) certificate.
As the skies darken and the nights draw in across Britain, households have been forced into a rather unpleasant waiting game. Dour news is surely coming out of 11 Downing Street and the Chancellor all but confirmed that by saying she would “deal with the world as I find it, not the world as I might wish it to be”.
While newspapers predict the government will need to find at least an additional £30 billion in its Autumn Budget due to higher-than-expected borrowing, how exactly it will do so is the operative question. Uncertainty and speculation rule as we approach the November budget; however, this presents wealth and planning professionals with a strategic window for substantive conversations with clients old and new.
Don’t treat this period as an extended waiting game. Instead, smart advisers will take what is already known and use it as a basis to reach out to clients, seize opportunities, add value, and even grow their client base.
What we know
Deadlines are rapidly approaching for tax and investment changes from the last budget. Several measures are now locked in – sharply expanding who will potentially have Inheritance Tax (IHT) liabilities. All pensions will now be treated as part of the taxable estate, with transfers after death subject to the standard 40% IHT rate (excluding existing nil-rate bands).
The nil-rate band and residence nil-rate band will remain frozen until April 2030, pulling more estates into scope as asset values rise. The Office for Budget Responsibility (OBR) modelling suggests that by 2028/2029, 6.3% of estates could face a liability, raising around £9 billion using 2023/2024 prices.
Business Relief (BR), which allows qualifying unquoted or AIM-listed shares to be passed on free of Inheritance Tax after two years, has also been overhauled. From April 2026, a £1 million allowance (combining Business Relief and Agricultural Property Relief assets) will apply for 100% BR, benefiting from complete IHT exemption. Above this allowance, 50% relief will be available, offering an effective IHT rate of 20%.
AIM-quoted BR-qualifying shares, which previously qualified for 100% relief after two years, will move to 50% relief with an effective IHT rate of 20%. There will be no limit or allowance on the amount invested.
Smart advisory firms should identify those newly impacted by IHT and explain the potential consequences for estate planning. They represent both a significant opportunity for proactive advisers – a headline reason to have a meaningful discussion about planning.
In determining an outreach strategy, advisers can divide those affected by these changes into two broad categories:
- Those who already have a relationship with an adviser
- Those who do not have a relationship with an adviser
What does this mean for clients with an existing relationship with an adviser?
Advice is already the norm for the wealthy
Research shows that roughly 73% of UK millionaire households engage a financial adviser – a clear sign that the wealthiest segment is already professionally managed when it comes to wealth planning. But no matter how extensive the relationship is, further conversations are now needed.
According to Downing research, 94% of advisers report a rise in IHT-planning enquiries, 76% say clients are making surplus-income gifts to reduce future IHT, and 47% say clients are even cutting pension contributions in favour of IHT solutions. A Schroders survey found almost all advisers (92%) are now reviewing client circumstances and wealth transfer plans. FTAdviser said this constituted the “most significant adviser planning shifts in decades”.
The immediate priorities are clear. Advisers can map affected clients, segment them by age and risk profile, and invite them virtually or in person to discuss exposure and options. Even where estate planning strategies are already in place, these will need to be reviewed in light of changes to ensure these are still appropriate for clients’ circumstances and objectives.
Advisers should revisit gifting strategies while existing exemptions remain. Under current rules, outright gifts to individuals are treated as Potentially Exempt Transfers (PETs): if the donor survives seven years after the gift, no Inheritance Tax is due. If death occurs within that window, taper relief reduces the effective rate on a sliding scale after the third year.
Why timing matters more than ever
Clients may also consider drawing tax-free lump sums from defined-contribution pensions and making gifts ahead of April 2027 to use today’s rules while they still apply – a step that several firms, including Charles Russell Speechlys, have described as “a prudent defensive measure.”
What this means for clients who don’t have an advisory relationship
Why wealth doesn’t always mean advice
It’s easy to caricature those without financial advisers as foolhardy or complacent. In reality, there are valid reasons why even individuals with seven-figure balance sheets have not yet engaged a professional planner.
The strong performance of UK property and global equity markets over the past decade has lifted the notional wealth of middle-aged professionals who still see themselves as “comfortable” rather than wealthy. Many simply do not recognise that they are liable to IHT. According to the OBR, the freezing of income-tax thresholds will bring nearly 4 million additional taxpayers into the system between 2022-23 and 2028-29 – a phenomenon known as ‘fiscal drag’. Meanwhile, the nil-rate band for Inheritance Tax remains frozen at £325,000 until at least 2029-30, meaning more estates will owe tax solely due to inflation-driven asset growth.
The hidden cost of going alone
But that misunderstanding can be costly in the current environment. The difference between engaging and not engaging an adviser can run into hundreds of thousands of pounds. According to research from the Financial Conduct Authority (FCA), households that receive professional financial advice accumulate on average around 10% more wealth than comparable households that do not – evidence that timely guidance can materially improve long-term financial outcomes.
Engagement also carries benefits beyond tax efficiency. It creates a bridge to the next generation of clients. Research from Nuveen found that 64% of heirs who are introduced to the family adviser before inheriting assets choose to retain that adviser, compared with far lower retention rates when no prior relationship exists.
Estate planning needs to shift from being a ‘death-bed’ discussion to one that begins years earlier. While many still delay formal plans into their late 50s or beyond (studies put the average age of will-makers at around 58), research shows that the average age at which people actually receive inheritance is in their mid-50s.
For advisory firms, this is the overlooked dividend of estate planning: every conversation about legacy is also a conversation about continuity. Ensure beneficiaries understand the benefits of comprehensive tax planning and how it can be applied intergenerationally. People tend to stay with those who have demonstrably saved them multiples of their fees – and that trust, once earned, can extend through generations.
What can benefit advisers and clients alike: more choice
One of the most effective ways to strengthen relationships is by offering real choice. Too often, planning has been delivered as a verdict – the adviser reviews the figures and prescribes a single course of action. While technically sound, that approach strips clients of agency.
Downing has embedded the philosophy of choice into its estate-planning range. Rather than funnelling every investor into a single structure, it provides a framework that matches risk, time horizon and estate objectives through three distinct tiers:
Downing Estate Planning Service: a capital preservation service targeting 3% – 4.5% returns (net of Downing ongoing fees), investing in established UK trading businesses with strong asset-backing in addition to Business Relief qualification.
Downing Growth Estate Planning Service: a growth-oriented service targeting 5% – 7% returns (net of Downing ongoing fees), investing in scalable UK businesses with the potential for higher capital appreciation over the medium to long term in addition to Business Relief qualification.
Downing AIM Estate Planning Service: a growth focused service investing in a diversified portfolio of 25 - 40 AIM companies. The approach can help spread risk and balance a portfolio, reducing reliance on any one single investment.
Together, these tiers allow advisers to tailor portfolios that align with each client’s circumstances – whether preserving wealth for the next generation, financial considerations ahead of retirement, or seeking long-term growth within a tried and tested estate-planning structure. This flexibility makes Business Relief more accessible to a wider group of clients, accommodating different levels of wealth, experience and risk appetite.
It turns estate planning, whether with new or existing clients, from a prescriptive exercise into a collaborative one, where advisers can demonstrate value by giving clients genuine, informed choice.
Conclusion: Seizing the window before the storm
The coming months are a period for action, not observation. The shape of future tax policy may remain uncertain, but the direction is unmistakable. With Inheritance Tax expanding, pensions coming into scope, and Business Relief redefined, delay is fast becoming the costliest decision of all.
Early preparation brings two clear advantages. It positions clients ahead of announced rules and builds resilience for whatever follows. Active relationships can adapt smoothly to the next set of changes. The Chancellor may yet again promise no further tax rises in this Parliament, but fiscal history – and the scale of current economic pressures – points to her inability to offer certainty. And not all decisions may be negative: mooted reforms to AIM may create new opportunities.
Estate planning at its best creates enduring structures that protect wealth and sustain family relationships across generations. Every client needs a plan grounded in today’s realities with the ability to adapt to what comes next. Advisers who start consultations now will be the ones their clients remember when the dust finally settles.
This article was written by:
Nick Priest
Join us on 2 December for our Autumn Budget webinar
Following the Government’s much-anticipated Autumn Budget, we understand that you or your clients may have questions about any changes announced and their impact. Join our live post-Budget webinar, where we will unpack all your questions and more with our panel of experts.
Our panel will be hosted by Nick Priest, Partner and Head of Strategic Partnerships at Downing. Nick will be speaking to Judith MacKenzie, Partner and Head of Downing Fund Managers, Tony Wickenden, Managing Director at Technical Connection, and Claire Trott, Director and Pensions Expert at Technical Connection.
Important notice
Opinions expressed represent the views of the author at the time of publication, are subject to change, and should not be interpreted as investment or tax advice.
Whilst care has been taken in compiling this content, no representation or warranty, express or implied, is made by Downing as to its accuracy or completeness, including for external sources (which may have been used) which have not been verified.
This article has been approved and issued as a financial promotion. Capital is at risk. Tax treatment is dependent on the individual circumstances of each investor and may be subject to change in the future. Downing is a trading name of Downing LLP. Any personal opinions expressed are the views of the Downing representative at the time of publication and are subject to change and should not be interpreted as advice. Downing LLP is authorised and regulated by the Financial Conduct Authority (Firm Reference No. 545025). Registered in England and Wales (No. OC341575). Registered Office: 10 Lower Thames Street London EC3R 6AF.
Claim your CPD Certificate
Complete the form below to secure your Continuing Professional Development (CPD) certificate.
Speak to an expert
Complete the form below and one of our experts will contact you shortly to learn more about your specific requirements.
Receive our updates
