Business Relief use expected to increase

19 July 2021

Three quarters (76%) of advisers expect to see growing demand for Business Relief propositions over the next two years, according to research from Deepbridge Capital.

Appetite for Business Relief will be driven by inheritance tax planning, with 80% of advisers listing it as their top consideration.

Latest HMRC figures showed IHT receipts rose to £966 million from April to May 2021, £340 million higher than in the same period the previous year.

According to Deepbridge, over three quarters (78%) of advisers already consider Business Relief for most or every client making it the second most commonly utilised IHT planning tool after gifting (94%).

For those using Business Relief, around one in six (16%) respondents preferred AIM stocks, while 31% preferred non-AIM and 54% expressed no preference.

Andrew Aldridge, partner and head of marketing at Deepbridge Capital, said: “The results of this survey support our strategy of providing a service dedicated to offering Business Relief qualifying investments to IFAs and their clients.

“For individuals and couples to generate a potentially large inheritance tax bill when they die, they may not necessarily need to be what they perceive as being ‘wealthy’. However, with some careful planning, it is possible to pass on more of their wealth to their family.

“By holding Business Relief qualifying assets, this could potentially be achieved after just 2 years, and enable investors to maintain ownership of their assets during their lifetime.”

Professional Paraplanner