HMRC to raise £110m per year by cutting IHT relief on AIM shares

Makes gifting a more 'attractive' option

HMRC expects to raise at least an additional £110m in inheritance tax (IHT) per year by reducing the IHT relief currently available on alternative investment market (AIM) shares, according to private wealth and family law firm TWM Solicitors.

At present, qualifying AIM shares attract 100% relief from IHT, but this will be halved to 50% relief in April 2026. Autumn Budget 24: Chancellor Reeves sets 20% IHT rate on AIM shares TWM Solicitors partner and head of private client Laura Walkley explained: "The IHT relief on AIM shares made them one of the more popular investment vehicles for reducing IHT. This change significantly impacts that strategy." The law firm noted that the reduction in IHT relief on AIM shares is viewed by many as a setback for UK growth companies that have relied on the AIM market to raise capital, of...