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ESG-Aligned Trusts and Legacies: Tax-Efficient Sustainable Estate Planning for Clients

· 20 min

Executive Summary

The convergence of expanded trustee investment discretion, maturing sustainability disclosure regulation, and tightened inheritance tax rules creates a distinctive opportunity for wealth managers to position ESG-aligned trusts and legacies as both values-driven and tax-efficient estate planning vehicles. Butler-Sloss v Charity Commission (2022) confirmed trustees' authority to adopt investment policies aligned with sustainability objectives, materially qualifying the traditional Cowan v Scargill interpretation. The FCA's Sustainability Disclosure Requirements regime, with anti-greenwashing rules operational since May 2024 and investment labels available from July 2024, establishes the regulatory framework for credible sustainable investment selection. HM Treasury's July 2025 decision to abandon the UK Green Taxonomy shifts regulatory focus to mandatory transition plans. Concurrently, frozen IHT thresholds to 2030-31, APR/BPR reforms from April 2026, and the residence-based IHT regime from April 2025 intensify the relevance of charitable giving structures that deliver both values alignment and tax efficiency.

1. Introduction

Sustainable investing and estate planning have traditionally occupied separate advisory disciplines. Investment committees debated fiduciary duty and ESG integration while estate planners focused on tax efficiency and wealth transfer structures. This separation is increasingly untenable. High-net-worth individuals and families seek coherent advisory frameworks that align their investment values with their legacy intentions.

The regulatory and legal landscape now supports this integration. Case law has clarified the scope of trustee discretion for ESG-aligned investment, the Financial Conduct Authority has established disclosure and labelling rules for sustainable investment products, and the inheritance tax system offers meaningful advantages for charitable giving.12 The challenge for practitioners lies in synthesising these developments into actionable client advice.

This article examines the legal foundation for ESG-aligned trust investment, the current SDR regulatory framework, the implications of HM Treasury's Green Taxonomy decision, tax-efficient giving structures, and the generational dynamics driving beneficiary ESG preferences. The analysis proceeds from legal authority through regulatory compliance to practical implementation, ensuring each section builds on established foundations.

Trustee Act 2000: The Statutory Framework

Section 4 of the Trustee Act 2000 establishes that trustees exercising investment powers must have regard to the "standard investment criteria" and keep trust investments under review. These criteria comprise: (a) the suitability to the trust of investments of the same kind as any particular investment, and (b) the need for diversification of investments, insofar as appropriate to the circumstances of the trust.3

The Explanatory Notes to the Trustee Act 2000 confirm that suitability includes "any relevant ethical considerations as to the kind of investments which it is appropriate for the trust to make."4 This statutory acknowledgement provides the foundation for ESG-aware investment decisions. Trustees are not required to ignore the ethical characteristics of investments when assessing suitability; rather, such considerations form part of the proper exercise of investment powers.

Cowan v Scargill: The Traditional Interpretation

The starting point for any analysis of trustee investment duties remains Cowan v Scargill (1984).5 In that case, Megarry V-C addressed whether trustees of a pension fund could adopt an investment policy prohibiting investment in energy industries competing with coal. The judgment established that trustees' duty to exercise investment powers in the best interests of beneficiaries would "normally" mean maximising financial returns.

However, the judgment has been subject to material misinterpretation. Megarry V-C did not establish an absolute prohibition on ethical investment considerations. The court acknowledged that trustees may take non-financial factors into account where all beneficiaries are adults who share a particular view, or where the investment strategy would not materially harm beneficiary interests. The judgment's emphasis on financial return reflected the specific context of pension beneficiaries with purely financial interests in the fund.

Butler-Sloss v Charity Commission: The Modern Position

Butler-Sloss v The Charity Commission [2022] EWHC 974 (Ch) marked a significant clarification of trustee investment duties in the sustainability context.6 The Ashden Trust and Mark Leonard Trust sought a declaration that they could adopt an investment policy excluding investments inconsistent with the Paris Climate Agreement, even if this might reduce financial returns.

Green J confirmed that charitable trustees have discretion to weigh multiple factors when considering ESG-aligned investment policies:

  • The likelihood and seriousness of potential conflict with charitable purposes
  • The likelihood and seriousness of resulting financial detriment
  • The risk of losing donor support or reputational damage
  • Whether the decision is reasonable and proportionate in the circumstances7

The ruling established that charitable trustees can pursue sustainability-focused strategies without automatic prohibition, provided the balancing exercise is properly documented and considered. This represents a material qualification of the traditional Cowan v Scargill interpretation, which had been understood to prioritise financial return above all other considerations.

Application to Non-Charitable Trusts

Practitioners must exercise care in extending Butler-Sloss principles to non-charitable trusts. The judgment specifically concerned charitable trustees exercising powers in pursuit of charitable purposes. The analysis relied heavily on the concept that investments conflicting with charitable purposes could harm the charity's reputation, donor relationships, and mission effectiveness.

For non-charitable trusts, the analysis differs. Private trustees owe duties to beneficiaries whose interests may be purely financial. However, several factors support a more flexible approach:

First, the Trustee Act 2000 applies to all trusts and expressly includes ethical considerations within suitability assessment.8 Second, settlors may include express provisions in trust instruments permitting or requiring ESG-aligned investment. Third, where beneficiaries have expressed ESG preferences, trustees may take account of those preferences within the Cowan v Scargill framework itself.

Academic commentary suggests that Butler-Sloss has broader implications for trustee investment duties generally, even if the specific holding applies to charitable trusts.9 The Law Commission has not issued specific guidance on ESG investment by non-charitable trustees, leaving practitioners to apply the statutory framework and case law principles to individual circumstances.

Documenting the Balancing Exercise

Whatever the trust structure, practitioners advising trustees on ESG-aligned investment should ensure the decision-making process is properly documented. This includes:

  • Recording the trustees' consideration of potential financial impact
  • Documenting the reasons for adopting ESG-aligned strategies
  • Evidencing review of beneficiary interests and any expressed preferences
  • Maintaining records of the balancing exercise and conclusions reached
  • Establishing processes for ongoing monitoring and review

Such documentation protects trustees against future challenge and demonstrates compliance with fiduciary duties.

3. The SDR Regulatory Framework and Its Implications

Anti-Greenwashing Rule

The FCA's Sustainability Disclosure Requirements regime, confirmed in PS23/16 (November 2023), establishes measures to improve trust and transparency in sustainable investment products. The anti-greenwashing rule applies from 31 May 2024 to all FCA-authorised firms making sustainability-related claims about financial products and services.10

Under this rule, sustainability-related claims must be fair, clear, not misleading, and proportionate to the sustainability profile of the product or service. This applies regardless of whether the product uses a sustainability label. Wealth managers selecting investments for trust portfolios must verify that any ESG claims made about investment products are substantiated and comply with FCA requirements.

Investment Labels

The FCA introduced four voluntary sustainability investment labels from 31 July 2024:11

  • Sustainability Focus: Products investing in assets that are environmentally and/or socially sustainable
  • Sustainability Improvers: Products investing in assets that may not be sustainable currently but aim to improve sustainability over time
  • Sustainability Impact: Products with an explicit objective to achieve positive, measurable real-world sustainability outcomes
  • Sustainability Mixed Goals: Products pursuing a combination of the above approaches

As of January 2025, 43 funds had notified their intention to use a sustainability label under SDR rules, and the FCA had approved pre-contractual disclosures for a further 57 authorised funds.12 Investment trusts remain outside the labelling regime, though the Association of Investment Companies notes that investment trusts' closed-ended structure makes them particularly suitable for sustainable investing as they do not need to sell assets when investors redeem.13

Disclosure Requirements

Larger firms (over GBP 50 billion AUM) must produce their first sustainability reports by 2 December 2025; smaller firms face a deadline of 2 December 2026.14 These disclosure requirements create transparency that benefits trustees conducting due diligence on ESG investments.

The FCA announced in February 2025 that it no longer intends to publish a Policy Statement on extending SDR to portfolio management in Q2 2025, wanting to ensure the regime protects consumers while considering practical challenges. Practitioners should monitor developments in this area, as extension to portfolio management would have direct implications for discretionary investment management services.

Due Diligence Obligations

Trustees selecting ESG investments for trust portfolios should implement robust due diligence processes:15

  • Verify the credentials of ESG-labelled products against SDR criteria where applicable
  • Document the rationale for ESG-aligned investment decisions
  • Assess whether sustainability claims are fair, clear, and not misleading
  • Monitor ongoing ESG performance and sustainability reporting
  • Ensure diversification requirements are met while pursuing ESG objectives

The risk of greenwashing claims against investment products creates both due diligence obligations and potential liability for trustees who fail to verify ESG credentials. The Advertising Standards Authority has issued rulings against financial institutions for misleading environmental claims, including multiple rulings against major UK banks.16

4. UK Green Taxonomy Abandonment and Transition Planning

Treasury Decision

On 15 July 2025, HM Treasury published its response to the UK Green Taxonomy consultation, confirming it will not proceed with a UK green taxonomy.17 Following mixed consultation responses (55% neutral or negative), the Treasury concluded that a UK Green Taxonomy is not the most effective tool to support the transition to a low-carbon economy.

The decision removes one potential compliance burden but does not represent a reduction in sustainable finance regulation. Instead, regulatory focus shifts to alternative mechanisms.

Alternative Regulatory Focus

The government is pursuing two primary alternatives:

UK Sustainability Reporting Standards (UK SRS): Consultation on proposed UK versions of the International Sustainability Standards Board standards continues through 2025-26. These standards would establish disclosure requirements for sustainability-related financial information.18

Mandatory Transition Plans: The Department for Energy Security and Net Zero launched a consultation on 25 June 2025 on mandating UK-regulated financial institutions (banks, asset managers, pension funds, insurers) and FTSE 100 companies to develop and disclose credible, decision-useful transition plans aligned with the 1.5C Paris Agreement goal.19

Implications for Practitioners

The transition plan consultation outcome remains pending; practitioners should monitor the government response and implementation timeline. The consultation proposes requirements for larger financial institutions and listed companies, which may affect:

  • Family office structures above applicable thresholds
  • Investment mandates requiring transition plan disclosure from underlying managers
  • Due diligence processes for institutional-scale ESG investments

Practitioners advising HNW clients should assess whether their structures fall within scope of potential mandatory transition plan requirements and adjust investment selection and monitoring processes accordingly.

5. Tax-Efficient ESG-Aligned Giving Structures

The 36% Reduced IHT Rate

For deaths on or after 6 April 2012, where an estate includes charitable legacies equalling at least 10% of the "baseline amount" (net estate after exemptions, reliefs, and the nil-rate band), the IHT rate on the remaining taxable estate reduces from 40% to 36%. IHTA 1984 Schedule 1A governs the calculation, which requires component-by-component analysis.2021

This mechanism enables clients to direct charitable giving to ESG-aligned charities--environmental organisations, social justice foundations, community development trusts--while reducing overall estate tax liability. The 4% rate reduction means that in some circumstances, increasing the charitable legacy can result in beneficiaries receiving more than they would without the charitable gift.

With IHT thresholds frozen until 2030-31 and the residence-based IHT regime bringing worldwide assets of long-term UK residents into charge from April 2025, the relevance of charitable giving strategies has intensified.22

Pension Death Benefits from April 2027

A significant change affecting estate planning strategy takes effect from 6 April 2027: most unused pension funds and pension death benefits will be brought within the value of a person's estate for IHT purposes.23 Personal representatives will be liable for reporting and paying any IHT due on these assets. The government estimates that approximately 38,500 estates will pay more IHT than would previously have been the case, with the average IHT liability increasing by around GBP 34,000 when pension assets are included.24

For clients with significant pension wealth, this change may shift the relative attractiveness of charitable giving strategies. Directing pension death benefits to charity would qualify for IHT exemption, potentially making charitable giving from pension assets more tax-efficient than bequeathing them to non-exempt beneficiaries. Practitioners advising HNW clients should integrate pension death benefit planning with broader ESG-aligned estate strategies, particularly where clients have expressed philanthropic intentions aligned with sustainability objectives.

Donor-Advised Funds

Donor-advised funds allow individuals, families, or businesses to contribute assets to a fund, receive immediate tax benefits, and recommend grants to charities over time. For cash contributions, Gift Aid provides income tax relief; for donated securities, donors benefit from CGT exemption on any gain.25

Assets grow tax-free within the fund while the donor takes time to identify suitable charitable recipients. NPT UK reports that contributions to DAFs totalled GBP 864.5 million in 2024, reflecting growing use of this vehicle for strategic philanthropy.26

For ESG-minded clients, DAFs offer particular advantages:

  • Immediate tax relief with flexibility to research charities aligned with sustainability objectives
  • Ability to consolidate philanthropic giving across multiple causes
  • Professional investment management of fund assets pending distribution
  • Opportunity to involve family members in grant-making decisions

VCT and EIS Sustainable Investment

Venture Capital Trust and Enterprise Investment Scheme investments offer significant tax reliefs combined with potential exposure to sustainable businesses:

VCT: Up to 30% income tax relief (reducing to 20% from 6 April 2026) on investments up to GBP 200,000 per year; tax-free dividends and CGT exemption on disposal.2728 Several VCTs have sustainability mandates: Gresham House's Baronsmead VCTs, for example, are signatories to the UN-supported Principles for Responsible Investment and integrate ESG factors into investment selection and monitoring.29

EIS: 30% income tax relief on investments up to GBP 1 million (GBP 2 million for knowledge-intensive companies); CGT deferral on gains reinvested; potential 100% BPR after two years of ownership.30 EIS fund managers increasingly offer portfolios focused on clean technology, renewable energy, and sustainable innovation.

Gifts of Appreciated Sustainable Assets

Donors of qualifying shares, securities, land, and buildings to charity receive income tax relief in addition to CGT exemption (no gain/no loss treatment for CGT purposes).3132 For clients holding appreciated sustainable investments, direct gifts of shares to charity can be more tax-efficient than selling and donating cash proceeds.

The income tax relief equals the market value of the asset plus any incidental costs of transfer. Combined with CGT exemption, this treatment makes gifts of appreciated assets particularly valuable where clients have substantial unrealised gains in sustainable investment holdings.

APR/BPR Reforms and ESG Investment Structures

From 6 April 2026, Agricultural Property Relief and Business Property Relief undergo substantial reform:3334

  • GBP 2.5 million 100% relief allowance per individual
  • GBP 5 million combined for married couples/civil partners (unused allowance is transferable)
  • 50% relief on value exceeding the allowance
  • AIM shares previously qualifying for 100% BPR will qualify for only 50% relief
  • Option to pay IHT by 10 interest-free annual instalments extended to all APR/BPR qualifying assets

Clients using AIM-listed sustainable investment companies for estate planning purposes face reduced relief from April 2026. This may shift focus toward:

  • VCT and EIS investments with explicit sustainability mandates (outside the BPR regime but with their own substantial tax reliefs)
  • Charitable giving strategies delivering full exemption regardless of value
  • Direct investment in unlisted sustainable businesses qualifying for full BPR within the GBP 2.5 million allowance

6. Multi-Generational Trusts and Beneficiary ESG Preferences

Generational Wealth Transfer Dynamics

The scale of intergenerational wealth transfer creates strategic importance for understanding beneficiary preferences. Between 2023 and 2045, an estimated USD 84 trillion in assets will pass to Millennials and Generation X globally.35 These generations demonstrate markedly different attitudes to sustainable investing.

Research indicates that 68% of high-net-worth individuals expressed likelihood to request an ESG score while investing in sustainable products in 2024, up from 63% in 2023. Among relationship managers, 50% reported clients are curious about ESG-linked assets and their impact on society.36 Generation Z leads with 66% expressing interest in ESG investing, while only 11% of Baby Boomers share this inclination.37

For multi-generational trusts, this divergence creates practical challenges. Older settlors may have established trusts with conventional investment mandates; younger beneficiaries increasingly expect ESG integration.

Trust Drafting Considerations

Practitioners advising on trust establishment should consider provisions that accommodate evolving ESG preferences:

Express ESG Provisions: Trust instruments may include express authority for trustees to adopt ESG-aligned investment strategies, or may require such strategies as mandatory direction. The drafting should clarify whether ESG considerations are permissive or mandatory, and how they interact with trustee duties to beneficiaries.

Reserved Powers: Settlors may reserve powers to direct investment policy on ESG matters, or may delegate such powers to a protector or investment committee with appropriate expertise.

Beneficiary Consultation: Trust instruments may require trustees to consult beneficiaries on investment policy, including ESG preferences, without imposing binding obligations that would fetter trustee discretion improperly.

Updating Statements of Investment Policy

For existing trusts, updating the Statement of Investment Policy and Guidelines provides a mechanism to integrate ESG considerations without amending the trust instrument:38

  • Articulate the trustees' interpretation of how ESG factors relate to the standard investment criteria
  • Establish ESG screening criteria or exclusion policies
  • Define monitoring and reporting requirements for ESG performance
  • Set processes for engaging with beneficiaries on ESG preferences
  • Document the balancing exercise between ESG objectives and financial return considerations

Family Values Statements

Family Values Statements serve as non-binding guidance documents that articulate the family's broader values and philanthropic intentions. While not legally binding on trustees, such statements:

  • Provide context for trustee decision-making on ESG matters
  • Facilitate family discussions about wealth and values
  • Create continuity of purpose across generations
  • Support trustees in balancing competing beneficiary preferences

Such statements should be clearly distinguished from binding trust provisions to avoid uncertainty about their legal effect.

7. Practical Implementation Framework

Advisory Checklist

Practitioners developing ESG-aligned estate planning strategies should address the following:

Legal Authority:

  • Review trust instruments for investment powers and any restrictions on ESG-aligned strategies
  • Assess whether Butler-Sloss principles apply (charitable trusts) or require adaptation (non-charitable trusts)
  • Document the balancing exercise supporting ESG investment decisions
  • Ensure compliance with Trustee Act 2000 standard investment criteria

Regulatory Compliance:

  • Verify ESG credentials of investment products against SDR requirements
  • Assess whether products carry FCA sustainability labels and review supporting disclosures
  • Implement due diligence processes to guard against greenwashing risk
  • Monitor regulatory developments, particularly SDR extension to portfolio management

Tax Efficiency:

  • Calculate the 36% reduced IHT rate threshold for charitable legacies
  • Evaluate DAF structures for clients seeking flexibility in charitable giving
  • Assess VCT and EIS opportunities with sustainability mandates
  • Review impact of April 2026 APR/BPR reforms on AIM sustainable investments
  • Consider gifts of appreciated sustainable assets for combined income tax and CGT relief
  • Integrate pension death benefit planning for clients with significant pension wealth ahead of April 2027 changes

Generational Planning:

  • Engage beneficiaries on ESG preferences through appropriate consultation mechanisms
  • Review and update SIPGs to accommodate ESG integration
  • Consider Family Values Statements for multi-generational structures
  • Draft new trust instruments with provisions accommodating evolving ESG requirements

Risk Considerations

ESG-aligned estate planning carries specific risks that practitioners must address:

Performance Risk: ESG-aligned strategies may underperform conventional approaches in certain market conditions. Trustees must balance values alignment against financial return expectations and document their reasoning.

Greenwashing Risk: Investment products claiming ESG credentials may not deliver on those claims. Robust due diligence and ongoing monitoring are essential.

Beneficiary Conflict: Multi-generational structures may face disputes between beneficiaries with different ESG preferences. Clear governance structures and communication protocols can mitigate this risk.

Regulatory Change: The SDR regime continues to evolve; the Green Taxonomy decision shifts regulatory focus; transition plan requirements remain under consultation. Strategies must be sufficiently flexible to accommodate regulatory change.

Conclusion

The integration of ESG principles with trust structures and estate planning represents more than a response to client demand--it reflects the maturation of both sustainable investing and charitable giving as mainstream components of wealth management practice. Butler-Sloss has clarified the legal authority for trustees to pursue sustainability-aligned strategies; the SDR regime provides the regulatory framework for credible ESG investment selection; and the UK tax system offers meaningful incentives for charitable giving that can align with clients' values objectives.

Practitioners face the task of synthesising these developments into coherent advisory frameworks. This requires technical competence across trust law, investment regulation, and tax planning--and the ability to communicate complex trade-offs to clients navigating the intersection of values and wealth transfer.

The generational dynamics of ESG preference divergence will intensify as the great wealth transfer progresses. Advisors who anticipate this in trust drafting, investment policy development, and family governance structures will be better positioned to serve clients seeking both financial efficiency and values alignment.

The abandonment of the UK Green Taxonomy does not signal retreat from sustainable finance regulation. Mandatory transition plans, sustainability reporting standards, and SDR disclosure requirements continue to shape the investment landscape. The April 2027 pension death benefit changes add further complexity to estate planning, potentially increasing the attractiveness of charitable giving strategies for clients with significant pension assets. Practitioners must monitor these developments while building advisory capabilities that serve clients' integrated estate planning and sustainability objectives.

CPD Declaration

Estimated Reading Time: 25 minutes Technical Level: Advanced Practice Areas: Estate Planning, Trust Administration, Sustainable Investment, Tax Planning

Learning Objectives

Upon completing this article, practitioners will be able to:

  1. Distinguish the scope of trustee ESG investment authority under Butler-Sloss for charitable trusts versus the statutory framework applicable to non-charitable trusts
  2. Apply the FCA's anti-greenwashing rule and sustainability label criteria when selecting investments for trust portfolios
  3. Calculate the threshold for the 36% reduced IHT rate for charitable legacies and evaluate its application to ESG-aligned charitable giving
  4. Evaluate the implications of April 2026 APR/BPR reforms for clients using AIM-listed sustainable investments in estate planning
  5. Design trust provisions and SIPG updates that accommodate beneficiary ESG preferences while preserving trustee discretion

SRA Competency Mapping

  • A2: Maintain the level of competence required in the areas of law in which they practise
  • B4: Draft documents that are legally effective and accurate
  • C1: Identify the client's objectives

Reflective Questions

  1. How would you adapt trust documentation review processes to accommodate the Butler-Sloss principles when advising charitable trust clients on ESG investment mandates?
  2. What additional due diligence steps would you implement when selecting investments claiming sustainability credentials for trust portfolios, given the FCA's anti-greenwashing rule?
  3. How might the April 2027 pension death benefit IHT changes affect your recommendations for HNW clients with significant pension assets seeking to align estate planning with ESG objectives?

Professional Disclaimer

The information presented reflects the regulatory and legislative position as of 2026-02-06. Regulations, tax rules, and professional guidance are subject to change. Readers should independently verify all information before acting and seek advice from appropriately qualified solicitors, financial advisors, or other professionals for their specific circumstances.

Neither WUHLD nor the author accepts liability for any actions taken or decisions made based on the content of this article. Professional readers are reminded of their own regulatory obligations and duty of care to their clients.

Footnotes

Footnotes

  1. Butler-Sloss v The Charity Commission [2022] EWHC 974 (Ch). https://www.bailii.org/ew/cases/EWHC/Ch/2022/974.html ↩

  2. FCA PS23/16, Sustainability Disclosure Requirements and Investment Labels (November 2023). https://www.fca.org.uk/publications/policy-statements/ps23-16-sustainability-disclosure-requirements-investment-labels ↩

  3. Trustee Act 2000, s.4. https://www.legislation.gov.uk/ukpga/2000/29/section/4 ↩

  4. Trustee Act 2000 Explanatory Notes, Division 5.2.2. https://www.legislation.gov.uk/ukpga/2000/29/notes/division/5/2/2 ↩

  5. Cowan v Scargill [1985] Ch 270 (ChD); summary at Swarb. https://swarb.co.uk/cowan-v-scargill-and-others-chd-13-apr-1984/ ↩

  6. Butler-Sloss v The Charity Commission [2022] EWHC 974 (Ch). https://www.bailii.org/ew/cases/EWHC/Ch/2022/974.html ↩

  7. Oxford Law Blogs, "Butler-Sloss v Charity Commission" (July 2022). https://blogs.law.ox.ac.uk/property-law-blog/blog-post/2022/07/butler-sloss-v-charity-commission-pursuit-charitable-purposes ↩

  8. Trustee Act 2000, s.4. https://www.legislation.gov.uk/ukpga/2000/29/section/4 ↩

  9. Bates Wells, "Butler-Sloss v Charity Commission: understanding trustee investment duties" (2022). https://bateswells.co.uk/updates/butler-sloss-v-charity-commission/ ↩

  10. FCA, Sustainability Disclosure and Labelling Regime. https://www.fca.org.uk/firms/climate-change-and-sustainable-finance/sustainability-disclosure-and-labelling-regime ↩

  11. FCA PS23/16, Sustainability Disclosure Requirements and Investment Labels. https://www.fca.org.uk/publications/policy-statements/ps23-16-sustainability-disclosure-requirements-investment-labels ↩

  12. FCA Information on SDR (January 2025). https://www.fca.org.uk/freedom-information/information-sustainability-disclosure-requirements-sdr-january-2025 ↩

  13. The AIC, "ESG and Investment Companies." https://www.theaic.co.uk/esg-and-investment-trusts ↩

  14. FCA Information on SDR (January 2025). https://www.fca.org.uk/freedom-information/information-sustainability-disclosure-requirements-sdr-january-2025 ↩

  15. Withersworldwide, "Trusts and ESG - Fad or Future?" https://www.withersworldwide.com/en-gb/insight/read/trusts-and-esg-fad-or-future ↩

  16. Freshfields, ESG Regulation and Litigation in 2025. https://sustainability.freshfields.com/post/102juzz/esg-regulation-and-litigation-in-2025-what-to-expect-for-uk-financial-institutio ↩

  17. HM Treasury, UK Green Taxonomy Consultation Response (July 2025). https://assets.publishing.service.gov.uk/media/687659e6a8d0255f9fe28edd/UK_Taxonomy_consultation_response.pdf ↩

  18. HM Treasury, UK Green Taxonomy Consultation Response (July 2025). https://assets.publishing.service.gov.uk/media/687659e6a8d0255f9fe28edd/UK_Taxonomy_consultation_response.pdf ↩

  19. Lexology, "Sustainability and ESG in 2026: UK and EU Regulatory Priorities and Timelines." https://www.lexology.com/library/detail.aspx?g=7a29068f-f636-4ad2-8cdf-c8adc561e744 ↩

  20. IHTA 1984, Schedule 1A. https://www.legislation.gov.uk/ukpga/1984/51/schedule/1A ↩

  21. HMRC IHTM45001, Reduced Rate for Gifts to Charity: Introduction. https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm45001 ↩

  22. GOV.UK, Technical Amendments to the Residence-Based Tax Regime. https://www.gov.uk/government/publications/residence-based-tax-regime-technical-amendments/technical-amendments-to-the-residence-based-tax-regime ↩

  23. GOV.UK, Inheritance Tax on Unused Pension Funds and Death Benefits. https://www.gov.uk/government/publications/inheritance-tax-unused-pension-funds-and-death-benefits/inheritance-tax-unused-pension-funds-and-death-benefits ↩

  24. GOV.UK, Inheritance Tax on Pensions: Liability, Reporting and Payment -- Summary of Responses. https://www.gov.uk/government/consultations/inheritance-tax-on-pensions-liability-reporting-and-payment/outcome/inheritance-tax-on-pensions-liability-reporting-and-payment-summary-of-responses ↩

  25. NPT UK, Tax Advantages for Donor-Advised Funds. https://www.nptuk.org/what-is-a-donor-advised-fund/daf-tax-consideration/ ↩

  26. NPT UK, The 2025 DAF Report. https://www.nptuk.org/reports/daf-report/ ↩

  27. GOV.UK, VCT Changes: Investment Limit Increase and Restructure. https://www.gov.uk/government/publications/enterprise-investment-scheme-eis-and-venture-capital-trusts-vct-changes/venture-capital-trusts-enterprise-investment-scheme-investment-limit-increase-and-restructure ↩

  28. GOV.UK, VCT Statistics 2025. https://www.gov.uk/government/statistics/venture-capital-trusts-2025/venture-capital-trusts-statistics-2025 ↩

  29. Gresham House, Baronsmead VCTs. https://greshamhouse.com/strategic-equity/private-equity/baronsmead-vcts/ ↩

  30. GOV.UK, EIS Statistics 2025. https://www.gov.uk/government/statistics/enterprise-investment-scheme-seed-enterprise-investment-scheme-and-social-investment-tax-relief-may-2025/enterprise-investment-scheme-seed-enterprise-investment-scheme-and-social-investment-tax-relief-statistics-2025 ↩

  31. HMRC Chapter 5, Giving Land, Buildings, Shares and Securities to Charity. https://www.gov.uk/government/publications/charities-detailed-guidance-notes/chapter-5-giving-land-buildings-shares-and-securities-to-charity ↩

  32. HMRC CG66630, Relief for Gifts of Assets to Charities. https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg66630 ↩

  33. GOV.UK, Agricultural Property Relief and Business Property Relief Changes. https://www.gov.uk/government/publications/changes-to-agricultural-property-relief-and-business-property-relief/agricultural-property-relief-and-business-property-relief-changes ↩

  34. House of Commons Library, Changes to Agricultural and Business Property Reliefs for IHT (CBP-10181). https://commonslibrary.parliament.uk/research-briefings/cbp-10181/ ↩

  35. Veris Wealth Partners, Sustainable Investing and ESG Factors in 2025. https://www.veriswp.com/sustainable-investing-and-esg-factors-in-2025-navigating-a-shifting-landscape/ ↩

  36. Citywealth Magazine, Top Ten Sustainability Trends in Wealth Management (2025). https://www.citywealthmag.com/news/top-ten-sustainability-esg-trends-in-wealth-management/ ↩

  37. Unbiased, ESG Investing Statistics: Key UK Trends and Insights. https://www.unbiased.co.uk/discover/personal-finance/savings-investing/esg-statistics ↩

  38. Withersworldwide, "Trusts and ESG - Fad or Future?" https://www.withersworldwide.com/en-gb/insight/read/trusts-and-esg-fad-or-future ↩

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