Form

How to fill in schedule D38

Updated 6 April 2026

When you should complete this form

You must fill in this form if you’re deducting Business Relief and the transferor or settlor owned any of the following:

• shares in a company
• a business or part of a business
• assets used in a business

You may need to fill in a separate form for each holding of shares, business or asset.

Note that in this guidance, reference to ‘trust’ and ‘settlement’ are treated as interchangeable terms.

What qualifies for Business Relief

Where agricultural relief and business relief apply to the same property, the claim made should be for agricultural relief. Business relief may apply to any excess value which does not qualify for agricultural relief.

You should treat Business Relief on assets held in a trust the same as assets in a person’s estate.

The transferor or settlor must have owned the assets for a minimum period, usually 2 years. You can claim relief for transfers that involve the following assets and shares.

A business or interest in a business

You can claim relief on a business or an interest in a business.

Stocks and shares

You can claim relief on certain types of shares in a company.

There are different rules for listed and unlisted companies.

Listed companies

This means a company is listed on a recognised stock exchange.

For transfers after 9 March 1992, it also includes shares trades on the:

• American NASDAQ (National Association of Securities Dealers Automatic Quotation System)
• European EASDAQ (European Association of Securities Dealers Automatic Quotation System)

You can claim relief on listed companies if the transferor or settlor controlled more than 50% of the voting powers at the time of the event. This is known as ‘control holding’.

Unlisted companies

This means a company is not listed on a recognised stock exchange.

Some companies are listed in the Stock Exchange Daily Official List but are unlisted for Business Relief. This includes shares listed on markets such as the Alternative Investment Market (AIM).

For chargeable events on and after 6 April 2026, shares in companies listed on a market that does not meet the definition of ‘listed’ for HMRC purposes (such as AIM), can now only qualify for 50% relief.

You can claim relief on unlisted companies if the transferor or settlor:

• owned any shares in an unlisted company
• controlled more than 50% of the voting powers at the time of the event — known as ‘control holding’
• controlled more than 25% of the voting powers at the time of the event — known as ‘substantial holding’

Land, building or plant and machinery used in a business

You can claim relief on these assets if they’re used either:

• in a business where the transferor or settlor was a partner at the date of the event
• by a company which was controlled by the transferor or settlor

If they’re held in a trust they will only qualify for Business Relief if both of the following apply:

• the transferor or settlor had the right to benefit from the trust
• the asset was used in a business by the previous owner as part of their business

Working out the amount of relief

You can work out the relief by deducting the percentage from the total value of the asset.

If the asset qualifies for 100% relief, you should include the total value of the asset in the corresponding box in the assets section on the IHT100 series form.

From 6 April 2026, relief at 100% on the combined value of qualifying agricultural and or business property is limited by a new relief allowance. Where the total value of qualifying property exceeds the relevant relief allowance, the excess will qualify for relief at 50%.

The relevant allowance depends on the circumstances.

Chargeable transfers

For chargeable transfers (including on death) reported on IHT100a and 100b, the transferor’s personal allowance is relevant.  This is £2.5 million less the qualifying value of any chargeable transfers made by the individual in the 7 years before this chargeable event.

On death, unused £2.5 million allowance from a late spouse or civil partner may be transferred to the deceased’s estate, provided that a claim is made within four years of the survivor’s death or within six months of the personal representatives starting their role.

Chargeable events

For chargeable events for relevant property settlements reported on IHT100c and IHT100d:

• If the settlement commenced before 30 October 2024 and contained agricultural or business property which qualified for 100% relief (other than unlisted shares, such as AIM shares, which now only qualify for 50% relief) then the trust allowance is £2.5 million which is relevant for chargeable events after the first 10-year anniversary on or after 6 April 2026

• If the settlement commenced after 30 October 2024 or did not have any 100% relievable property (other than unlisted shares, such as AIM shares, which now only qualify for 50% relief) at that date, then you need to calculate the relief allowance available for the settlement for chargeable events on or after 6 April 2026. This is based on the 100% relief available to the settlor on transfer into the trust, limited to a maximum of £2.5 million for all trusts made by the same settlor on or after 30 October 2024.

Chargeable events for special trusts

For chargeable events for special trusts reported on IHT100e, the trust allowance is £2.5 million.

Chargeable events for 18-25 trusts

For chargeable events for 18-25 trusts reported on IHT100h, the trust allowance is £2.5 million per beneficiary.

More than one chargeable event

If there is more than one chargeable event on the same day that qualifies for 100% relief, or more than one element of a deceased’s estate that qualifies for 100% relief, then the relief allowance is apportioned.

See IHTM25500 for full details on the operation of the relief allowance and apportionment.

Find more information about Business Relief

Check which assets do not qualify for Business Relief.

Read technical guidance about Business Relief in the Inheritance Tax Manual.

What happens next

You should use the figures in this schedule to help you fill in the IHT100 series form.

You must send this form alongside the completed IHT100 series form. Make sure you include copies of any documents we’ve asked for.

Get help

You should contact the Inheritance Tax helpline if you need help completing this form.