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

Budget 26: Stamp Duty on shares to be swapped for Securities Transfer Tax

Budget 26: Stamp Duty on shares to be swapped for Securities Transfer Tax

By late 2027

Patrick Brusnahan
clock 28 October 2026 • 1 min read
Investment tax relief rises by smallest amount in four years amid recent Budget measures

Investment tax relief rises by smallest amount in four years amid recent Budget measures

Bowmore Financial Planning research

Jack Roach
clock 28 October 2026 • 2 min read
Defaqto to launch rating for newer funds and portfolios

Defaqto to launch rating for newer funds and portfolios

Combines Defaqto and RSMR expertise

Jen Frost
clock 27 October 2026 • 2 min read