Business Relief has formed part of UK inheritance tax legislation since 1976. Its original purpose was straightforward: a family trading business should not have to be broken up simply to settle a tax bill on the death of its owner. Successive governments have retained it, and it continues to apply to shares in qualifying unlisted trading companies.
For advisers, the appeal is usually a matter of timescale and control. A gift or a trust arrangement typically requires seven years to fall fully outside the estate, and the client must part with the asset. Qualifying business assets can achieve relief after a two-year holding period, and the client retains ownership throughout.
Reforms taking effect from April 2026 change the shape of that conversation rather than removing it. [Final legislative detail, thresholds and transitional provisions to be confirmed following publication of the relevant legislation and HMRC guidance — no figures should be quoted from this article until confirmed.]
What has not changed is the diligence expected of the adviser. The qualifying conditions are assessed by HMRC after death, on the facts as they stand at that point. No provider — and no adviser — can obtain advance clearance. That places weight on the substance of the underlying trading activity and on how consistently it is monitored.
The structural questions New Walk works through with advisers are consistent across providers: what does the company actually trade in, how is qualifying status reviewed and evidenced, how is liquidity managed in practice, what happens if the investor dies inside the two-year window, and what documentation will the executors need in order to make a claim.
Business Relief availability depends upon the relevant statutory conditions being satisfied at the relevant time. Tax rules, rates and reliefs may change. Capital is at risk and the value of an unlisted trading company can fall as well as rise.