Autumn Budget 24: Reeves sets 20% IHT rate on AIM shares

Chancellor unveils 50% relief

Cristian Angeloni
clock • 1 min read

Chancellor Rachel Reeves has unveiled a 50% relief on “all circumstances on inheritance tax” for shares held on the Alternative Investment Market (AIM) and other similar markets.

This will set the "effective rate of tax" at 20%, setting out what Reeves called her "balanced approach" on the matter, in her first Budget since Labour won the general election in July. Reeves' decision was part of a package reforming the IHT system, as she highlighted that "only 6% of estates" will pay inheritance tax this year. She continued her predecessors' decision to freeze IHT bands for a further two years, until 2030, meaning that the tax-free sum will remain at £325,000 on any estate; rising to £500,000 if the estate includes a residence passed to direct descendants and to £...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Four reasons why direct engagement can still make a difference

Four reasons why direct engagement can still make a difference

'Quantitative data arguably tells only half the story'

Simon Wood
clock 05 March 2026 • 4 min read
Darius McDermott: Is income under pressure?

Darius McDermott: Is income under pressure?

‘The period of abundant income is ebbing'

Darius McDermott
clock 04 March 2026 • 5 min read
Investors told 'hold your nerve' as Iran strikes drive volatility

Investors told 'hold your nerve' as Iran strikes drive volatility

Ongoing conflict impact

Linus Uhlig
clock 02 March 2026 • 3 min read