Four out of five advisers expect use of business relief on unquoted firms to manage inheritance tax (IHT) exposure will increase over the next two years.
A survey of 100 advisers and wealth mangers carried out by Time Investments shone light on the rising importance of business relief as a financial planning tool. A similar proportion (85%) said this also applies to tax breaks related to investing in Alternative Investment Market (Aim) stocks.
The researchers also found 60% of respondents said that over half of their clients over 50 would benefit from business relief planning options.
Time noted the growing challenge of managing IHT liabilities is highlighted by recent HMRC figures, which show that IHT receipts hit a record £7.5bn for the last tax year (2023/24). This was an increase of £400m from the previous one. IHT receipts have consistently risen over the last decade, increasing by 120% from £3.4bn in 2013/14.
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The firm recently launched a comprehensive guide to business relief for advisers, available via its website.
Henny Dovland, business development director at Time Investments, said: “We believe that business relief is a vital component of any adviser’s IHT planning toolkit and our research supports this.
“The flexibility and control it offers clients is critical, especially in these challenging economic times as IHT receipts continue to climb, and it can work well alongside other IHT planning services to give bespoke solutions that really work for individual needs.”
