Risks
Potential for capital loss
AIM shares tend to be more volatile than those of larger companies.
Business Relief is not guaranteed
HMRC assess AIM company BR qualification for every death.
Tax rules may change
Current legislation and HMRC practice subject to change dependent on individual’s personal circumstances.
Liquidity
AIM shares can be more difficult to sell than those of larger companies.
Investors may have to accept a price below real value, or experience delays in sale.
AIM shares should not be a core investment
AIM shares are more suitable to form a smaller proportion of an investor’s overall portfolio given they represent a higher degree of risk.