Clients planning for inheritance tax (IHT) are increasingly turning to Business Relief (BR) solutions ahead of changes coming into effect from next April, according to new research* from Downing.
In the investment manager’s survey of UK financial advisers and wealth managers, 76% reported a rise in the proportion of their clients using BR solutions for IHT planning, including 8% reporting a substantial increase.
The research showed that currently, 59% of advisers estimate between 20% and 30% of their clients planning for IHT use BR, while 41% put that proportion at between 10% and 20%.
In last year’s Budget, the Chancellor announced plans to reform the IHT available on BR. From April 2026, unquoted BR assets and Agricultural Relief assets will benefit from a £1 million allowance, where the assets will benefit from 100% IHT relief and thereafter, IHT will apply at half the normal rate (20%). All AIM-listed BR-qualifying shares will benefit from IHT at half the normal rate (20%).
The study from Downing found almost all (95%) of advisers surveyed say they will continue to use AIM IHT products offering access to BR after April 2026.
More than four out of five (83%) said they could consider a BR product aiming to return an annual yield of 5% to 7% to investors.
Downing’s survey found that 76% of advisers say clients are making gifts from their surplus income as a way to cut potential IHT bills, while 52% say clients are using trusts.
Just less than half (46%) say clients are giving money to charity in order to reduce potential IHT bills, while 42% are putting life assurance policies in a trust. Just one in five (19%) say clients are gifting lump sums as part of IHT planning.
Mark Dunn, Head of Retail Sales at Downing says: “We are seeing strong demand from advisers for Business Relief solutions with last year’s Budget adding further momentum.
“Substantial numbers of clients are using Business Relief as part of their IHT planning and that is likely to grow as more people focus on the possibility of their estate being subject to IHT in the future.
“With changes to Business Relief coming into effect from April next year, we are continually reviewing our offering to give advisers confidence that they can meet their clients’ evolving needs.”
* Independent research company PureProfile interviewed 100 UK financial advisers and wealth managers using an online methodology during August 2025.
