Service Overview
Thorntons Investments have been managing AIM portfolios since 2006.
Our AIM Inheritance Tax Portfolio Service is a discretionary managed portfolio of AIM company shares which if held for two years and at death, are expected to qualify for business relief and be exempt from IHT.
Our experienced investment team select and manage a well-diversified portfolio of smaller companies chosen for their quality, strength and growth potential.
We seek capital preservation and long-term growth together with a respectable dividend yield.
Availability
Our AIM IHT portfolio service is only available to investors through their financial adviser, and is held as a model portfolio on the following third-party platforms:
Standard Life Wrap, Ascentric, FundNetwork, Transact, 7IM, Nucleus and Embark.
- Investment options: ISA, ISA Transfer, GIA and SIPP
- Minimum investment: £20,000
Charges
- Annual Management Charge: 1% (the service is VAT exempt)
- Platform specific fees will apply
- Some platforms may also levy a small dealing charge (£ not %)
There are no initial, withdrawal or exit charges.
All charges are published in our Quarterly Investor Factsheets.
Contact
For further information please contact our Head of Business Development David Holmes.
We have a range of adviser and client support material available in our literature library.
Factsheets
These are held in our literature library.
Performance
The performance of our AIM portfolio can be found here, with further information available in our quarterly factsheets.
Independent Research
Both MICAP and MJ Hudson have independently reviewed our AIM IHT Portfolio Service and prepared reports. These are available for financial advisers to access.
MICAP
A free copy of the MICAP Review Report is available at the link below:
MJ Hudson
Financial Advisers wishing a copy of the MJ Hudson review report should contact Lauren Radford at MJ Hudson in the first instance to discuss options. Please note there may a charge for this service.
GrowthInvest: Adviser Hour Spotlight
Our Chief Investment Officer Matt Strachan talks to Lawrence Gosling about our AIM IHT service.
Click here to view (from July 2019)
Who may benefit?
In contrast to making a gift and having to survive for seven years, BR qualifying AIM shares held for at least two years and at death, are expected to qualify for IHT relief. For clients with health concerns, there are no medical underwriting requirements, unlike some Trust investments.
Some younger clients may have no immediate liability to IHT, but face the prospect of an IHT problem in future, for example from an inheritance. Making an AIM/BR qualifying investment provides an opportunity to plan ahead, perhaps by using their annual ISA subscription.
Some clients may not want the complexity and costs of setting up a trust or may have difficulty in deciding who to appoint as trustee.
Significant limitations exist for an attorney to make lifetime gifts. An AIM/BR qualifying investment may provide a suitable IHT planning solution, with access to capital if required, for example the payment of care home fees.
BR qualifying assets settled into a discretionary trust will not be liable to the 20% Chargeable Lifetime Transfer.
Where a business is sold for cash, the proceeds immediately form part of the estate for IHT purposes. However, where the business assets already qualify for business relief, then should the proceeds be invested into BR qualifying AIM shares there is no need to restart the ‘two-year’ clock. The assets are expected to be immediately outside of the estate on death, and the investor retains access and control to their capital, along with the prospect for growth. This offers a suitable IHT planning opportunity for clients who are either considering selling their business, or who sold their business within the last three years.
Risks
