Investments which qualify for Business Property Relief (BPR) are free of inheritance tax(IHT) after two years of ownership. This makes them an extremely attractive option for individuals looking to reduce their estate's exposure to IHT.

What is interesting is that traditionally BPR qualifying investments have always been viewed as being at the riskier end of the investment spectrum, but as this report alludes to, investment in BPR qualifying assets is on the increase. It would seem that this is primarily due to an overall decrease in the investment risk that many BPR products offer these days, coupled with a desire to find ways to avoid IHT at a time when the options available are diminishing.

The question is whether the government will act to reduce the availability of BPR as the tax take reduces.