AIM Shares IHT Calculator 2026 — BPR Cap Impact

Yes — AIM shares in companies that are not excluded from Business Property Relief (BPR) qualify for 100% BPR after 2 years of continuous ownership. From April 2026, the BPR relief will be capped at £1M combined with other BPR/APR assets.

Excluded activities include: investment companies, property dealing and development, financial services companies, and companies more than 50% of whose business is in these activities. Active trading companies in manufacturing, retail, hospitality etc. typically qualify.

You can check the company's main business activities. Specialist AIM ISA managers (Dowgate Wealth, Octopus Investments, etc.) publish BPR-qualifying portfolios. HMRC makes the final determination — there is no pre-approval process for individual investors.

Yes — the 2-year clock restarts if you sell and rebuy different AIM shares. However, if a company exits AIM but you receive new qualifying shares in a successor company, the holding period may continue. Transfers between spouses do not reset the clock.

From 6 April 2026, the combined BPR and APR cap of £1M applies. AIM portfolios above £1M (or where the cap is already used by other BPR/APR assets) will only receive 50% relief on the excess, with the remaining 50% subject to 40% IHT.

Yes. AIM shares held in a Stocks & Shares ISA still qualify for BPR after 2 years. The ISA wrapper provides income tax and CGT benefits, while BPR provides IHT relief — a powerful combination. However, from April 2026 the £1M cap applies regardless of ISA status.

Specialist providers offer 'AIM IHT ISA' portfolios containing 20-30 AIM stocks selected for BPR eligibility. Typical annual management charges are 0.5-1%. Performance can be volatile — AIM companies are inherently riskier than FTSE main market companies.

Executors claim BPR on the IHT400 form (Schedule 12). They must provide evidence that the shares qualified (company annual report, confirmation of trading activities) and that the 2-year holding requirement was met.