Private Client Tax & Practice Spring Update Bundle

This talk will explore key planning considerations for Agricultural Property Relief (APR) and Business Property Relief (BPR), including the main structuring options for farms and businesses, common issues that arise when allocating reliefs in wills, and how discretionary trusts can be used as part of the planning approach in higher-value estates.

• Planning options for farms and businesses valued at up to £2.5m, and those exceeding this threshold
• Illustration of the three main options:
  • Leaving assets to the surviving spouse (either outright or via an IPDI trust)
  • Leaving assets directly to children
  • Leaving assets to children via a discretionary trust (D/T)
• Issues with will provisions referring to “my fully relievable property” and “my partially relievable property”, including:
  • The difficulty that the 100% allowance cannot be allocated to a specific gift if that is the ultimate outcome of the flexible beneficiary structure
  • The risk of relief being lost due to the “spread rule” in s.39A
• Planning using discretionary trusts, including the use of s.144 to ensure the appropriate amount remains in the discretionary trust, with the residue passing to an IPDI trust or outright to the surviving spouse
• Returning to discretionary trusts as a planning solution, but only as a starting point in higher-value estates

Simon Douglas, Barrister, 5 Stone Buildings

This talk will consider key issues in lifetime planning involving Agricultural Property Relief (APR) and Business Property Relief (BPR), focusing on how reliefs can be used effectively during lifetime transfers and the planning structures that may be appropriate for farms and trading businesses, including: 

• The value of gifting to a spouse so they can utilise the £2.5m allowance, and potentially more where 50% relief applies
• Ensuring the relief can effectively be “banked” on the first death in case of a later sale of the asset or loss of BPR (e.g. where the business ceases to be mainly trading) before the second death
• Lifetime succession planning and use of the £2.5m allowance – when it becomes renewable (noting Rose’s reply to Claire regarding the trust allowance)
• How the trust allowance will operate where gifts are made after 5 April 2026
• Asset protection considerations in lifetime gifting, and the value (and limits) of using trusts compared with alternatives such as pre-nuptial and post-nuptial agreements
• Structures to consider, including partnerships for farming businesses compared with trading company structures
• Any specific rural issues to be aware of in this context

Naomi Neville, Solicitor, Partner, Irwin Mitchell

This session will examine the evolving role of pensions in estate planning in light of the changes coming in April 2027, and how pensions will interact with other planning tools. In particular, it will cover:

• The role of pensions in a financial plan, given the changes due in April 2027.
• Illiquid assets in pensions – including commercial property and business assets – and the practical issues that arise.
• Annuities in the current environment.
• Life insurance within a modern estate planning framework.
• Other wealth planning strategies and tax-advantaged vehicles:
  • VCTs, EIS and Business Relief investments (including structures such as Octopus/Triple Point)
  • Investment bonds as an estate planning and tax-planning tool
  • Trust-based strategies such as loan trusts and discounted gift trusts

Ola Adeosun, Partner, Head of Regional Wealth Planning, LGT Wealth Management

This talk will examine key aspects of lifetime inheritance tax (IHT) planning involving property, highlighting the effective use of exemptions, common anti-avoidance rules, and practical issues that can arise when transferring or sharing property interests. This session will study:

• Effective use of IHT exemptions, including potential traps with the normal expenditure out of income exemption
• Key anti-avoidance rules: GWR, POAT, DOTAS and PCRT
• The s.102B(3) and (4) FA 1986 exemptions – giving away a property interest while retaining a rental arrangement
• Application of DOTAS to property planning, including gifts to a co-occupier and the full consideration exemption
• Sharing property with elderly relatives – issues and potential traps to consider
• BOMAD planning considerations – gift, loan, guarantee of a mortgage, or transfer of a share of equity
• Post-Budget 2025 considerations: planning ahead of the proposed “Mansion tax” in April 2028 and the additional 2% on dividends and savings income

John Bunker, Solicitor, Chartered Tax Adviser and Lecturer

Part 1

• What valuations of farm/rural business are needed for IHT, if assets held in own name, partnership or company structure?
• What info does a valuer need for such valuations?

Nicholas Watson, Head of Private Client, Strutt & Parker Part 2

• Why is the value in the company accounts not enough - what more is needed?
• What are the valuation rules regarding percentages of company shares?
• Where are the issues in negotiating discounts with SVD?

Adam Cooper, Partner, Valuations, Forvis Mazars

5.00pm Close of Proceedings

• Lifetime planning and the need for cash or realisable assets to pay IHT
• Existing wills – the need to review
• Spousal by-pass trusts?
• Use of exemptions

Professor Lesley King, Professional Development Consultant, University of Law

This session will explore the latest issues for trusts and tax planning, to include:

• Mansion tax and the extra 2% income tax charge on savings, property and dividends; exploring the tax changes in the Nov 2025 Budget, planning opportunities open to clients, and specific provisions for the mansion tax for trusts and other ownership arrangements
• Update on IHT planning for APR & BPR, and IHT planning through wills, with the newly increased £2.5m 100% allowance, including how this can be allocated by will etc.
• RNRB: how IHT on pensions will affect RNRB claims, and relevant planning to help mitigate the loss
• TRS update: the new exclusions from the need to register Express Trusts, due in early 2026

John Bunker, Solicitor, Chartered Tax Adviser and Lecturer

This session will review changes in practice and procedure and evolving case law relating to lasting powers, deputyship orders, mental capacity and health and social care

• Consultation on MCA Code of Practice
• Digital LPAs
• New digital process for trustee applications when a trustee has lost mental capacity
• Capacity case law
• Latest Ombudsman decisions on paying for care

 Caroline Bielanska, Solicitor, TEP, Independent Consultant, Mediator, Author and Trainer

• Impact of lifetime gifts
• Removing PRs
  • The process
  • Alternatives
  • Managing conflicts of interests
• Low income estates
  • HMRC complaints
• The latest on implications of Mazur judgment
• Costs and Larke v Nugus requests

Professor Lesley King, Professional Development Consultant, University of Law

Managing the huge new risks for probate work, in acting for or being PRs, even after the helpful concessions make the task of PRs less impossible. This talk will explore the changes needed both for practice and in estate planning, ahead of the new law taking effect in 2027 and will look at:

• Probate: how firms need to gear up/adapt; developing processes re sharing info and completing the IHT 400; paying IHT, instalment options and interest on o/s tax
• How PRs should use their power to direct pension scheme administrators (PSAs) to retain 50% of pensions for 15 months
• Next steps where estates are still running after 15 months; and holding back some estate until clearance
• The effect of PSAs appointing to beneficiaries, the options for paying IHT, including liability of pension beneficiaries & refunding PRs
• Liaising with PSAs & FPs re appointing benefits, and using IHT spouse and charity exemptions -including the 10% lower rate of IHT
• Briefly, the interaction of 40% IHT & Income tax up to 45% including potential repayments of the 40%
• What it means for estates with different or the same beneficiaries; the costs & interest burden, and for appointing Executors
• Estate planning: steps to help clients ahead of these major changes to pensions

John Bunker, Solicitor, Chartered Tax Adviser and Lecturer

Many attorneys do not realise they may need authority from the Court of Protection before they make gifts, maintain others or invest in tax planning products.  This session will consider:

• When is it reasonable to make a gift under s.12 MCA
• The limits of making gifts
• The de minimus exception
• When is maintenance not a gift?
• When does investing in a tax planning product need court approval
• Preliminary considerations
• Evidence in support and the court's approach

Caroline Bielanska, Solicitor, TEP, Independent Consultant, Mediator, Author and Trainer

5.00pm Close of Proceedings