Business Relief Qualifying Shares & Assets
Investments in unlisted or qualifying AIM shares that can qualify for 100% IHT relief after 2 years. A key estate planning tool for business owners with significant wealth.
How It Works
You invest in unlisted or qualifying AIM shares outside an ISA. After 2 years, they should qualify for 100% Business Relief, exempting them from IHT on death. Income and gains are taxed normally but the IHT saving can be substantial.
Tax Treatment
Outside an ISA, dividends and gains are taxable normally. However, qualifying shares can achieve 100% IHT relief after 2 years, making them extremely valuable for estate planning.
Tax Advantages
- 100% IHT exemption after 2 years
- No limit on qualifying amount (unlike ISAs)
- Retain full ownership and control
- Can combine with ISA holdings for comprehensive IHT planning
Who Is This Suitable For?
High-net-worth individuals who have exceeded ISA allowances and want to reduce IHT liability. Often used alongside an AIM ISA.
Frequently Asked Questions
What qualifies for Business Relief?▾
Shares in unlisted trading companies, AIM-listed trading companies, and business assets used in a qualifying trade. Investment companies and property rental businesses generally do not qualify.
Do my own company shares qualify?▾
Yes, if your company is a qualifying trading company. Your shares typically qualify for 100% Business Relief after 2 years.
Can HMRC challenge claims?▾
Yes. HMRC assesses qualification on death and may challenge if the company has significant investment activities.