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UK

AIM to manage IHT - the advantages of investing in the Alternative Investment Market

8 November 2018

With our families’ future financial wellbeing always in the back of our minds, we’d all welcome legitimate ways to manage inheritance tax (IHT) liability. One way to do this is by investing in the Alternative Investment Market (AIM).

 

 

Important information: This service should be regarded as high risk as it is exclusively focused on equities. The portfolios are wholly invested in small capitalisation stocks. These companies are therefore more volatile and whilst they can offer great potential, growth is not guaranteed. The current inheritance tax rules and tax treatment of AIM shares may change in the future. We strongly recommend that clients discuss their financial arrangements with their tax adviser before investing, as the value of any tax relief is subject to individual circumstances.

Our Inheritance Tax Portfolio Service

There are a number of measures you can put in place to safeguard at least some of your estate from IHT. For example, there are IHT advantages to be gained by investing in the Alternative Investment Market (AIM), which is why we at Canaccord Genuity Wealth Management created the IHT Portfolio Service in 2006, now in its 12th successful year.

The IHT Portfolio Service looks after more than £130m of funds on behalf of 450 clients and invests in securities listed on AIM.

 

Inheritance Tax Portfolio Service performance since inception (capital return, gross of fees and charges)

 

Source: Canaccord Genuity Wealth Management (CGWM)

Important information: Past performance is not a reliable indicator of future performance. Performance is shown gross of fees Annual management fee and transaction charges apply.

 

Once you’ve held an investment in certain AIM companies for two years, it no longer counts as part of your estate for IHT purposes. This is because, under certain rules, these companies qualify for a tax relief called Business Relief (BR). This compares favourably with the usual rule that applies to gifts and simple trust transfers, when you have to survive for seven years before they become IHT exempt.

If you’d like to know more about our  IHT Portfolio Service, please contact Paul Parker on +44 20 7523 4534 or email paul.parker@canaccord.com.

The tax treatment of all investments depends upon individual circumstances and the levels and bases of taxation may change in the future. Investors should discuss their financial arrangements with their own tax adviser before investing.

The tax treatments set out in this communication are based on our current understanding of UK legislation. It is a broad summary and cannot cover every circumstance and it does not constitute advice.

Photo of Paul Parker

Paul Parker

Investment Director

Paul is head of the Intermediary Portfolio Management team. He has an in-depth understanding of managing funds for high net worth individuals, pensions, trusts and charities and specialises in Alternative Investment Market IHT portfolios.


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IMPORTANT: Investment involves risk. The value of investments and the income from them can go down as well as up and you may not get back the amount originally invested. Past performance is not a reliable indicator of future performance.

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