Gifting AIM shares to avoid 7 year rule

[kiloware43]

I made a note a few years ago that was along the lines of...."AIM shares can be gifted without the 7 year rule coming into effect, as long as they have been held for 2 years"

Assuming they are all BPR businesses, is that correct ?

[AGoodman]

It's correct subject to:

- there is a retest if the donor dies within 7 years. IHT will be payable on the original gift unless the donee is still holding the shares or replacement BPR assets at the death of the donor.
- from 6/4/26 there will be a £1m cap on 100% BPR. The balance will be only 50% relief.

[AGoodman]

Just to add that, from April 2026, AIM shares will only benefit from 50% relief, not 100%. This will probably apply to gifts made after October 2024 if the donor dies after April 2026.