Join our community of smart investors

Aim shares in pensions could lose IHT benefits

Pensions could be subject to the full inheritance tax, regardless of where they are invested
Aim shares in pensions could lose IHT benefitsPublished on November 12, 2024
  • Aim shares in pensions could offer no IHT relief
  • Illiquid assets in pensions could cause problems for families

It is unlikely Aim-traded shares held in pensions will provide inheritance tax (IHT) relief after April 2027, advisers have warned. 

In last month’s Autumn Budget, chancellor Rachel Reeves announced that from April 2027, pension pots will be included in a person’s estate when they die and subject to IHT. Meanwhile, from April 2026, IHT relief on Aim shares will be halved – qualifying shares will no longer be IHT-free but taxed at 20 per cent.

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Already a subscriber? Sign in