Why is inheritance tax

planning important?

More people are facing inheritance tax, as asset values rise and allowances remain frozen. Thinking about planning early can maximise the benefit of allowances and enable more to be passed to loved ones.

Protect more of your estate

Inheritance tax (IHT) is charged on the value of a person’s estate when they die. An estate includes property, savings, investments and possessions. If your estate exceeds £325,000, IHT is usually charged at 40% on the value above this threshold.

Effective planning is key. Using allowances and solutions, such as gifting and trusts, helps reduce exposure and preserve more of your estate.

Utilising the Business Relief (BR) allowance can also support estate planning. Qualifying investments benefit from 100% relief from IHT after two years, giving you a flexible option when you want to retain ownership of your wealth while planning for the future¹.

Download our inheritance tax guide Explore our solutions

Everyone has inheritance tax-free allowances

IHT is usually charged at 40%, on the value of your estate above the allowances

Nil-rate band

The basic inheritance tax‑free allowance is £325,000 per person. If the value of your estate is below this threshold, there is usually no inheritance tax to pay

Residence nil-rate band

This additional allowance can increase your inheritance tax‑free amount to up to £500,000 when a main residence is passed to a direct descendant

Business Relief (BR) allowance

The first £2,500,000 of BR-qualifying assets will receive 100% inheritance tax relief. Anything above this amount will receive 50% relief

Where Business Relief fits in

The BR allowance will provide 100% relief from inheritance tax on the first £2,500,000 of qualifying assets, once they have been held for at least two years and remain held at death. These include agricultural property, shares in unquoted trading companies, family businesses and partnerships.

Qualifying AIM-listed companies and investments will benefit from 50% relief.

This can help you keep ownership and access to your investments while reducing the inheritance tax due on your estate¹.

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How to invest in a BR-qualifying company

Direct investment

You may own or set up a business that qualifies for Business Relief. However, a deep understanding of the business, industry and overall market conditions is required to minimise risk

Managed qualifying portfolio

Fund managers, such as Puma Investments, offer access to diversified portfolios of BR-qualifying companies with professional oversight of your capital

Find out how to invest with us

Other ways to reduce an inheritance tax bill

Giving away money

each year

Usual annual gifting allowances can help you gradually reduce the value of your estate. These gifts fall outside IHT and can be an effective way to manage long‑term liabilities

Making seven year gifts

during your lifetime

Larger lifetime gifts can reduce inheritance tax, provided the individual survives for seven years after making them. This approach may be used if you want to transfer wealth and support family members sooner

Releasing equity from

your home

This may allow you to access funds tied up in your property, which can then be gifted or used to reshape the estate. It can help reduce the estate’s value for IHT purposes, although suitability and long‑term costs must be considered

Treatment of pension

schemes on death

Following the Autumn 2024 Budget, whether your pension is subject to inheritance tax will depend on whether death occurred before or after 6 April 2027

Taking out

life protection

Life insurance can provide funds to cover a future inheritance tax bill, easing the impact on beneficiaries. When written in trust, the payout usually falls outside the estate and is available quickly after death

Setting up

a trust

Trusts can help you manage how and when assets are passed on while reducing the value of their taxable estate. They offer control and flexibility, although the tax rules are complex and require careful planning

Find out more

Inheritance tax solutions

Open for investment

Puma Heritage

Estate Planning Service

Seek 100% inheritance tax relief after two years¹ with investments in Business Relief-qualifying private trading companies

More about the Service

Open for investment

Puma AIM ISA

Inheritance Tax Service

A portfolio of AIM‑quoted companies, available through an ISA, offering IHT relief

More about our ISA Service

Open for investment

Puma AIM

Inheritance Tax Service

A portfolio of AIM‑quoted companies, available outside an ISA, offering IHT relief

More about our non-ISA Service

Case studies

See how investments in BR-qualifying companies can unlock inheritance tax benefits

Meet Vikram

Estate planning for people who have a Power of Attorney in place

Find out more

Meet Sheila

Estate planning for investors who are selling or have sold a business

Find out more

Meet Susanna

Estate planning for investors who want to maintain access to their capital

Find out more

Resource toolkit

Inheritance tax guide

Puma Heritage EPS Investment Overview

Puma Heritage Corporate EPS Investment Overview

Puma AIM ISA IHT Service Investment Overview

See all resources

FAQs

For information purposes only and should not be read as advice. Professional tax advice should be sought that can take account of your individual circumstances.

Find out more

Please contact your Financial Adviser to discuss our investment solutions in more detail.

Alternatively, our team of over 20 Client Relations and Operations specialists can provide practical guidance and seamless service at every stage of your investment journey.

Contact our team today

Further information

¹Tax reliefs are not guaranteed, depend on individual circumstances, minimum holding periods, and may be subject to change.

² Source: https://www.londonstockexchange.com/raise-finance/equity/aim

Risk factors

Business Relief (BR) applies only to eligible private trading companies and requires that the business is not under a binding contract for sale at the time of death. These investments are high risk, illiquid, and must be made through a Financial Adviser who has assessed their suitability.

An investment in Business Relief-qualifying services may not be suitable for all investors. These investments carry risks, and investors should seek independent advice before proceeding. Investments should be made based on detailed information and an understanding of the associated risks. Below are the key risks.

Past performance: Past performance is no indication of future results and share prices and their values can go down as well as up.

Tax reliefs are not guaranteed: Tax reliefs depend on individuals’ personal circumstances and minimum holding periods, and may be subject to change.

You may lose money: An investment in smaller companies is likely to be higher risk than other investments. Investors’ capital may be at risk and investors may get back less than their original investment.

Long-term investment: An investment in a Business Relief-qualifying service should be considered a long-term investment.

Potentially illiquid investment: Stocks within Business Relief-qualifying services are largely small and illiquid. They are characterised by significant spreads and low trading volumes. It may prove difficult for investors to realise immediately or in full proceeds from the sale of such shares.

Figures on this page are taken from Puma Investments and are correct as of 15 April 2026 unless stated otherwise.