New HMRC Numbers: Only 68 Estates Hide £1.8 Billion from Inheritance Tax
HM Revenue & Customs has just released fresh data that may keep a few big players on the safe side. Moosin: 68 estates managed to tuck away a staggering £1.8 bn under the “Business Relief” loophole for inheritance tax.
Why the Debate Is Heating Up
There’s a growing chorus asking to eliminate Business Relief from AIM shares. The idea: if companies can no longer hold onto this tax‑friendly shield, the market will tighten, making going public tougher for smaller enterprises.
Wealth Club’s Take: “Let’s Not Break the Market”
Investment Manager Nicholas Hyett of Wealth Club has sounded the alarm:
- “It’s no surprise the biggest estates cut the biggest losses. Removing the relief would upset the entire AIM ecosystem.”
- “If investors pull out after the relief disappears, share prices could see a sudden drop.”
- “Long‑term, valuations would fall, raising the cost of raising capital. That’s a problem for the UK’s promising companies.”
- “Some say liquidity is fine without the relief, but it actually thrives because the relief exists. Without it, AIM liquidity would thin out like a Sahara desert.”
- “Both parties have pledged support for small firms. Dismantling the junior market would be a self‑sabotage move.”
Bottom Line
Removing Business Relief could create a domino effect: lower valuations, higher funding costs, fewer listings, and an even tougher environment for newly‑grown UK companies looking to stay local rather than being poached overseas.
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