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Yes, shares in a private company qualify for 100% Business Relief for inheritance tax purposes as long as you own the shares for 2 years before you pass away.
Your loan can be converted to equity i.e. shares in the company and if you live for 2 years after the debt is converted to equity, the shares will be exempt from IHT.
Further information appears here: https://www.gov.uk/business-relief-inheritance-tax/what-qualifies-for-business-relief
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