IHT Business Relief Calculator
Calculate IHT with Business Relief (100%/50%) under current rules AND the April 2026 reform (£1m allowance, AIM at 50%) — see the extra tax coming.
Data verified · July 2026
What qualifies for 100% Business Relief today?
A business or interest in a business, and unquoted shares — including AIM-listed shares — owned for at least 2 years at death.
Source: GOV.UK — Business Relief for IHT (gov.uk/business-relief-inheritance-tax); APR/BPR reform policy paper (Autumn Budget 2024). · updated 2026
Like this calculator?
Create a free account to save your calculations, access history, and export to PDF. Upgrade to Pro for all 319 calculators.
A question about this result?
Ask Solva, ActioFin's AI finance advisor — answers sourced from official texts.
5 free questions per day with a free account
Everything about IHT Business Relief Calculator
📋Overview+
Compares Inheritance Tax on business assets under both regimes: today's Business Relief (100% on unquoted businesses and AIM shares, 50% on controlling quoted stakes and business land) versus the announced April 2026 reform — 100% relief capped at a £1,000,000 allowance then 50%, with AIM shares at a flat 50% — quantifying the additional IHT and the planning window.
💡 Best practices
- The new charge can be paid over 10 years in interest-free instalments — but it is still real tax.
- Lifetime gifts, trusts and insurance are being reviewed before April 2026 — the planning window is now.
- The £1m allowance is per person and not transferable between spouses — structuring wills matters.
🔢 Concrete example
£3m unquoted business plus £500,000 of other assets: £70,000 of IHT today, but £470,000 from April 2026 (£1m at 100%, £2m at 50%) — £400,000 of additional tax.
📖User guide+
How to use this calculator
- 1
Enter the value of assets currently qualifying at 100% (unquoted business, shares).
- 2
Enter AIM shares separately — they lose the £1m allowance in 2026.
- 3
Add 50%-category assets, the rest of the estate and the nil rate band.
- 4
Compare the IHT under both regimes and the extra charge from April 2026.
📚Glossary+
- Business Relief (current)
- 100% IHT relief on a business, an interest in a business and unquoted shares (including AIM) owned 2+ years; 50% on controlling quoted holdings and land/buildings/machinery used by the business.
- April 2026 reform
- A combined £1,000,000 allowance (shared with Agricultural Relief) keeps 100% relief; above it relief halves to 50% — and AIM shares drop to 50% with no allowance at all.
ℹ️Sources & updates+
Last data update
July 5, 2026
Sources and references
GOV.UK — Business Relief for IHT (gov.uk/business-relief-inheritance-tax); APR/BPR reform policy paper (Autumn Budget 2024).
The data in this calculator is updated regularly to reflect the latest official rates. When in doubt, consult the official sources listed above.
FAQ — IHT Business Relief Calculator
What qualifies for 100% Business Relief today?+
A business or interest in a business, and unquoted shares — including AIM-listed shares — owned for at least 2 years at death.
What changes in April 2026?+
100% relief is capped at a £1,000,000 combined allowance (with Agricultural Relief); the excess gets 50% relief — an effective 20% IHT rate. AIM shares get 50% with no allowance.
Can the new tax be spread?+
Yes — IHT on qualifying business assets can be paid in 10 equal annual instalments, interest-free under the reform proposals.