From April 2026, changes to Business Relief are encouraging advisers to rethink inheritance tax planning. While much of the focus has been on reduced relief for qualifying AIM shares, the reforms also reinforce a wider shift in how Business Relief solutions are used.
Traditionally, AIM investments have suited clients seeking long-term growth, while unquoted Business Relief investments have appealed to those focused on preserving wealth.
Under the new rules, qualifying AIM shares will receive 50% inheritance tax relief, creating an effective 20% tax liability. A £2.5 million combined allowance for Business Relief and Agricultural Property Relief will also be introduced, with any qualifying assets above this limit receiving reduced relief.