Business property relief
Last reviewed 18 August 2026
For the family business, this relief has long been the difference between passing on a going concern and selling it to pay the tax. From April 2026 its generosity is, for the first time, capped.
What it does
Business Relief (often called business property relief) can reduce the inheritance-tax value of qualifying business assets — a trading business, or unquoted shares in one — by up to 100%. It is meant to keep working businesses intact between generations rather than broken up to meet a tax bill.
The 2026 cap
From 6 April 2026, 100% relief is capped at a combined £2.5 million per person across business and agricultural property (Finance Act 2026). Above the cap, only 50% relief applies — an effective inheritance-tax rate of 20% on the excess. Shares on AIM are cut to 50% relief and do not draw on the £2.5 million allowance. Anyone relying on this relief for a substantial business should review their plans against the new limit.
Questions
Does business relief still remove all the tax?+
Do AIM shares qualify for full relief?+
Sources. GOV.UK, Business Relief for Inheritance Tax; Finance Act 2026 (APR/BPR £2.5m cap from 6 April 2026, 50% relief above; AIM shares 50%).