AIM Inheritance Tax Portfolio Service


Our primary objective is to provide investors with a portfolio of AIM company shares which qualify for Business Relief, if owned for two years. We also look to preserve value whilst targeting growth over the long term, and generate an honest yield to cover most or all charges.

Our AIM IHT Portfolio Service 

 

  • 3rd party platform based model portfolio
  • 100% IHT relief expected after only two years
  • Seeks to preserve value while targeting growth over the long term
  • Easy to administer and to access capital when required
  • Can offer significant cost and admin savings when compared to ‘off-platform’ solutions
  • Dividend yield aims to cover most or all charges
  • Minimum investment £20,000
  • AIM IHT portfolio management dating back to 2006
  • Details on our charges, performance and risk outcomes can be found in our AIM IHT Quarterly Factsheet

AIM Portfolio charges:

  • Annual Management Charge of 1% (plus VAT)
  • No initial charge
  • No withdrawal or exit charges
  • Platform charges apply (including dealing charges)
  • Adviser Charging available

AIM IHT Quarterly Factsheet

Thorntons AIM IHT Factsheet Q1 2018

Access

Our AIM IHT model portfolio is available through the Standard Life Wrap Platform.

For more information about our AIM IHT portfolio service, or to discuss platform access, please contact David Holmes who will be happy to help.

AIM Industry Report 2017/18

We are pleased to be one of the sponsors of this year’s AIM Industry Report. Produced by Intelligent Partnership, this report has been written for financial planners who advise on investing in AIM. To download a free copy, please click here.

Advisers who subscribe to MICAP’s research and due diligence services for tax-advantaged investments will find our AIM IHT Model Portfolio Service listed.


Key Benefits

AIM shares qualifying for Business Relief if held at death, are expected to qualify for 100% relief from inheritance tax after being held for just two years. This allows more wealth to be passed on to beneficiaries.

This compares favourably with other forms of estate planning such as gifts in excess of available exemptions, which would require the donor to live for seven years for the gift to become fully exempt from IHT.

Your client still retains full access to their portfolio, and can withdraw some or all of their investments at any time. They can request for shares to be sold should their circumstances change.

By comparison with AIM investment, traditional estate planning such as setting up trusts and gifting assets can prove complex and/or require medical underwriting.

Where making gifts or trust transfers are restricted or prohibited, an Attorney with the appropriate financial powers is allowed to invest in qualifying AIM shares, always taking account that the attorney must always act in the best interests of the donor
given their personal circumstances.

The diversification of companies listed on the Alternative Investment Market provides opportunity for growth and dividends.

AIM shares can be left to the surviving spouse on the first death without breaking the ‘two-year clock’. Where the AIM shares are held in an ISA, the surviving spouse will have an additional ISA subscription equal to the value of their partner’s ISA portfolio
at death. They can move these holdings to their own ISA while keeping the ‘two-year clock’ running.

Key Risks

The performance of shares in AIM-listed companies tend to be more volatile than those of larger companies and the risks of capital losses are greater. The value of the investment may go down as well as up, and may end up being less than the initial sum invested.

HMRC will assess AIM company qualification for Business Relief when an investor dies, meaning a qualifying investment cannot be guaranteed to always remain so.

Rates of tax, tax benefits and allowances are based on current legislation and HMRC practice, and are dependent on an individual’s personal circumstances. These are all subject to change meaning that tax reliefs cannot be guaranteed.

The shares of AIM-listed companies can be more difficult to sell than those of larger companies, and may be illiquid. Investors looking to sell may have to accept a price below the real value of the companies, and may experience delays in completing a
sale.
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