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There is rarely one route to estate planning. Depending on a client's circumstances, an adviser might discuss gifting, trusts, insurance, pensions or investments that qualify for Business Relief (BR), with several approaches often used alongside one another.
BR has some characteristics that set it apart. Investments in qualifying unquoted companies can become eligible for inheritance tax (IHT) relief once they have been held for two years, while the client continues to own the investment. This compares with larger lifetime gifts to individuals, which will normally only fall fully outside the estate if the donor survives for seven years.
So, when might BR be worth discussing with a client? We look at five circumstances where it could form part of their wider estate planning.
1. They want to retain ownership of their wealth
Gifting can be an effective way of reducing the value of an estate, but it also means giving up ownership of the assets being transferred.
For some clients, that can be a difficult decision. They may want to pass more of their wealth to the next generation, while remaining conscious of how much they could need themselves throughout retirement.
With a BR investment, the client continues to own the investment while it can potentially qualify for IHT relief. This can offer an alternative for clients who are comfortable investing their capital but are not ready to give it away permanently.
Retaining ownership does not mean the money will always be immediately accessible. BR services typically invest in unquoted companies, so withdrawals can take time and cannot be guaranteed when requested.
2. They are starting their estate planning later in life
Estate planning does not always begin years in advance. A change in family circumstances, the sale of a business, an inheritance or simply reaching a later stage of retirement can all prompt clients to look at their estate for the first time.
The time available to plan can therefore make a difference to the options considered. Larger gifts to individuals need to be made seven years before death to fall fully outside the estate for IHT purposes, while qualifying BR investments can become eligible for relief after two years.
For clients beginning their planning later, the two-year qualifying period can make BR one of the options worth exploring with their adviser.
3. Their estate has grown since they last reviewed it
A client's estate can look very different from when their plans were first put in place. Property and investments may have increased in value, they may have received an inheritance or their overall financial circumstances may simply have changed over time.
The treatment of pensions is changing too. From April 2027, most unused pension funds and pension death benefits will be brought within the estate for IHT purposes. Clients who had planned to preserve their pension for beneficiaries may therefore find that their expected IHT position has changed.
Reviewing the estate as a whole can identify whether an IHT liability has emerged or increased and whether BR could have a role alongside the client's existing arrangements.
4. They already own assets that qualify for BR or APR
The changes introduced in April 2026 make it particularly important to understand what qualifying assets a client already holds.
Each individual now has a £2.5m allowance covering qualifying business and agricultural property that would otherwise receive 100% BR or Agricultural Property Relief (APR). This can include shares in qualifying unquoted companies, including those held through a BR investment service. Qualifying value above the available allowance receives 50% relief.
A client who owns a business, shares in qualifying companies or agricultural property may therefore already be using some or all of their allowance. Before making a further BR investment, advisers will need to consider those existing assets and how a new investment would fit alongside them.
5. They want their capital to remain invested
Estate planning does not necessarily mean moving capital away from a client's investment portfolio.
For clients considering BR, the underlying investment still matters. BR services invest in qualifying businesses and can vary considerably in their approach, from the types of companies they invest in, to the way they seek to generate returns.
This means advisers can consider the potential estate planning benefit alongside the investment itself, including its strategy, expected returns, diversification and the client's appetite for risk.
Looking at BR as part of the wider plan
The circumstances above can provide useful starting points for a conversation, but BR is only one of the options available when planning how wealth is passed on.
The client's wider estate, what they want to leave to beneficiaries and how much capital they may need themselves all need to be considered. Where BR forms part of the plan, the underlying investment also needs to be suitable for the client, including its risk and liquidity.
For a broader look at estate planning, read our Guide to Estate Planning. You can also read our Introduction to Business Relief for more on how BR works and the rules introduced in April 2026.
To learn more about the Estate Planning Service managed by Beringea, please visit this page.
Important Notice
For professional advisers only.
This document is for information purposes only and does not constitute investment, tax, financial or legal advice. It does not constitute an offer to buy or sell an investment or solicit any such invitation.
The explanation of the tax rules set out in this article has been written in accordance with our understanding of the law and interpretation of it at the time of publication. The information is believed to be accurate at the date of publication, but no representation or warranty, stated or implied, is made or given by any person as to its accuracy or completeness and no responsibility or liability is accepted for any such information or opinion. Tax treatment depends on individual circumstances, and tax rules may change.
Issued by Beringea LLP of Charter House, 55 Drury Lane, London, England WC2B 5SQ. Registered in England and Wales under number OC342919. Authorised and regulated by the Financial Conduct Authority under number 496358.
