Specialised Investments Newsletter – January 2025 Edition
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Welcome to this month’s edition of Specialised Investments Simplified, designed to provide financial advisers with the latest insights and actionable updates on key investment topics. This edition covers developments in inheritance tax (IHT), Venture Capital Trusts (VCTs), Enterprise Investment Schemes (EIS), emerging markets, and the strategic role of gold for 2025.
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IHT Receipts Soar to ￡6.3 Billion – A Record Year Ahead
With IHT receipts hitting ￡6.3 billion, the Treasury is set for a record-breaking year. The frozen nil-rate band and rising property values continue to leave clients exposed to increasing IHT liabilities. Additionally, the industry warns that IHT on pensions could create “significant problems” for clients who have relied on these assets as part of their estate planning strategy. Now, more than ever, robust estate planning advice is essential to help clients mitigate their exposure.
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VCTs: Beyond Size and Age
As Venture Capital Trusts celebrate their 30th anniversary, their relevance remains strong. While the size and age of a VCT often influence client confidence, advisers should note that success increasingly depends on the expertise of the management team, the quality of deal flow, and portfolio diversification. With tax-efficient opportunities still in demand, VCTs offer a compelling solution for clients seeking growth-focused investments.
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Is EIS the Right Fit for Your Clients in 2025?
Enterprise Investment Schemes (EIS) continue to provide tax-efficient growth opportunities, particularly for clients willing to embrace higher-risk investments. With Income Tax relief, CGT deferral, and potential Inheritance Tax benefits, EIS may present a timely solution for clients seeking diversification while optimizing their tax position.
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Navigating Emerging Market Volatility Driven by US Policy
Global Emerging Markets (GEMS) remain under pressure due to U.S. policy-driven volatility. Shifts in monetary policy, geopolitical tensions, and trade dynamics are creating challenges—but also opportunities. Advisers should carefully evaluate how these trends could impact client portfolios and whether exposure to GEMS remains aligned with their risk appetite.
Gold in 2025: A Strategic Anchor for Portfolios
Gold remains a strategic asset in uncertain times, offering diversification and a hedge against volatility. The World Gold Council’s 2025 outlook emphasizes gold’s continued relevance for client portfolios, particularly given macroeconomic uncertainty and shifting market dynamics. For advisers, gold can provide an effective way to mitigate risk while enhancing portfolio resilience.
Supporting Your Clients in 2025
The evolving investment landscape presents both challenges and opportunities. As advisers, ensuring clients are informed and well-positioned to navigate these developments will be key to delivering value. Whether it’s addressing IHT exposure, exploring VCTs or EIS, or rebalancing portfolios with gold and emerging markets, staying proactive will set you apart.
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