Business Relief on qualifying shares
Once shares have been held for two years, they may become eligible for Business Relief. From 6 April 2026, the first £2.5 million of an individual’s qualifying assets can receive 100% relief. This allowance applies per individual, and any unused allowance may generally be transferred to a surviving spouse or civil partner, meaning a married couple or civil partners could potentially obtain 100% relief on up to £5 million of qualifying assets. Qualifying assets above the available allowance may receive relief at 50%. Business Relief depends on the circumstances at the time of a transfer, usually on death, and entitlement is determined by HMRC rather than guaranteed in advance.
Do you have clients with existing BR-qualifying investments?
If an investor switches from another BR-qualifying asset into IEP, replacement relief may apply. Where the sale proceeds of the original investment are reinvested into IEP within three years of disposal, the new investment may qualify without waiting a further two years, provided the combined ownership of the old and new assets totals at least two years within the five years preceding the transfer. The relief available on the replacement investment cannot exceed the relief that would have applied to the original asset. Where relevant business property is inherited from a spouse or civil partner on death, the recipient may generally inherit the deceased’s period of ownership for Business Relief purposes.
Immediate cover with IEP Apex once shares are allotted
IEP Apex includes complimentary cover under a group life insurance policy. Once shares are allotted, if an investor dies during the two-year qualifying period, the policy can pay up to 40% of the initial subscription value, subject to a maximum benefit of £200,000. There is no additional charge for the cover and no medical examination is required. To be eligible, investors must be aged between 18 and 86, be UK resident, be registered with a UK doctor and complete a Health Declaration. IEP Private Real Estate doesn’t include this cover.
A defined investment strategy
The investment strategy seeks to generate returns through secured lending to real estate projects, rather than relying on capital growth or market timing. The IEP targets a long-term return of 3% to 5% per annum, net of fees, over a five-year rolling period. This is a target, not a promise: the value of an investment can go down as well as up.
Access and withdrawals
Investors can request regular withdrawals, or a partial or full redemption after an initial 12-month holding period, subject to available liquidity. A partial withdrawal reduces IEP Apex’s insurance cover in proportion, and a full redemption ends it.
Investors’ relief
During lifetime
Gains may qualify for Investors’ Relief once shares have been held for at least three years, giving a reduced capital gains tax rate of 18% for qualifying disposals made on or after 6 April 2026. The relief is subject to a lifetime limit of £1 million of qualifying gains.
On death
If an investor dies holding shares, the base cost is generally uplifted to the market value at the date of death, meaning no CGT is payable on gains accrued up to that point. If the investor’s executors later sell the shares, CGT may be payable on any increase in value arising after death. The executors’ base cost will be the market value at the date of death, and any gain realised on a subsequent disposal will generally be subject to CGT at 24%, Investors’ Relief would not normally be available to executors in respect of a post-death disposal. Any gain may be reduced by the annual exempt amount available to executors, which is £3,000 for the 2026/27 tax year, provided the estate remains within the period for which the exemption is available.
For full details of the investment strategy, risks, charges, liquidity considerations and eligibility criteria, please refer to the relevant IEP Apex or IEP Private Real Estate Brochure and Investor Agreement.
