Autumn Budget 24: Chancellor Reeves sets 20% IHT rate on AIM shares

Inheritance tax reform

Chancellor Rachel Reeves has unveiled a 50% relief on “all circumstances on inheritance tax” for shares held on the Alternative Investment Market (AIM) and other similar markets.

This will set the "effective rate of tax" at 20%, setting out what Reeves called her "balanced approach" on the matter, in her first Budget since Labour won the general election in July. Reeves' decision was part of a package reforming the IHT system, as she highlighted that "only 6% of estates" will pay inheritance tax this year. She continued her predecessors' decision to freeze IHT bands for a further two years, until 2030, meaning that the tax-free sum will remain at £325,000 on any estate; rising to £500,000 if the estate includes a residence passed to direct descendants and to £...