BUSINESS RELIEF
Business Relief explained
Find out how Business Relief supports smarter estate planning, and learn more about the changes announced in the 2024 Budget.
Why Business Relief should be a part of every estate planning conversation:
1. IHT relief after just two years
While gifts and trusts take seven years to become fully exempt from IHT, investments that qualify for Business Relief achieve IHT exemption after just two years, provided they are still held at death.
2. Maintain full access and control over their investment
Clients may not want to give away wealth or place it into trust if access and control is important. Business Relief-qualifying investments stay in the client’s name, so they can access the funds when they need them, subject to liquidity.
3. No medical underwriting or complex set up needed
For later life clients, life insurance or trust arrangements can be complex and costly. Business Relief is a simple alternative, with no medical checks or complicated paperwork.
“Your clients don’t need to own a business for their estate to benefit from Business Relief. One of the simplest ways is to choose a dedicated investment manager such as Triple Point to invest on their behalf in companies expected to qualify.”
Jack Rose
Head of Distribution
BUSINESS RELIEF UPDATE
Business Relief is changing.
Currently, estates can claim 100% IHT relief on any amount invested in Business Relief-qualifying shares. From April 2026, the first £1 million will still receive 100% relief, with 50% relief on anything above that. This means an effective 20% IHT rate* on the excess – still a meaningful reduction compared with the standard 40% rate. Any AIM-listed shares will qualify for 50% relief, regardless of the amount invested.
| Type of Business Relief- qualifying business | Business Relief that can be claimed after April 2026 | How much IHT must be paid |
|---|---|---|
| Shares in unquoted business (such as companies accessed via the Triple Point Estate Planning Service) | 100% on the first £1 million of shares, 50% on the remainder | Nothing for the first £1 million and an effective IHT rate of 20%* on any amount exceeding £1m |
| Shares in AIM-quoted companies | 50% on all shares | An effective IHT rate of 20%* applies to all AIM shares |
* This 20% rate reflects a blend of the standard IHT rate and the impact of the relief provided (i.e. 50% of 40% is 20%).
Our practical guide to IHT
Help clients get to grips with IHT with this guide, approved for retail investors. It covers key facts, has a checklist for calculating the size of an estate, and suggests different ways to reduce a potential IHT bill.
It also highlights changes from the Autumn Budget 2024, including impacts on Business Relief and pensions.
NEWS & INSIGHTS
Latest news & insights
