Clients planning for inheritance tax (IHT) are increasingly turning to business relief (BR) solutions ahead of changes that will come into effect in April, research by Downing has revealed.

The investment manager’s survey of financial advisers and wealth managers found that 76% reported a rise in the proportion of their clients using BR solutions for IHT planning. This included 8% reporting a substantial increase.

Almost three in five (59%) advisers estimated between 20% and 30% of their clients are using BR for IHT planning, while 41% estimated between 10% and 20%.

Chancellor Rachel Reeves announced plans in the Autumn Budget to reform IHT available on BR. As a result, unquoted BR assets and agricultural relief assets will benefit from a £1m allowance from April 2026, where the assets will benefit from 100% IHT relief.

Thereafter, IHT will apply at half the normal rate of 20%. All AIM-listed BR-qualifying shares will benefit from IHT at half the normal rate.

Downing’s survey also revealed that 95% of advisers said they will continue to use AIM IHT products offering access to BR after April 2026.

Meanwhile, 83% said they would consider a BR product aiming to return an annual yield of 5% to 7% to investors.

Furthermore, 76% of advisers stated that clients are making gifts from their surplus income as a way to cut potential IHT bulls, while 52% said that clients are using trusts.

Head of retail sales at Downing, Mark Dunn, said: "We are seeing strong demand from advisers for BR solutions with last year’s Budget adding further momentum.

"Substantial numbers of clients are using BR as part of their IHT planning and that is likely to grow as more people focus on the possibility of their estate being subject to IHT in the future.

"With changes to BR coming into effect from April next year, we are continually reviewing our offering to give advisers confidence that they can meet their clients’ evolving needs."

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