AIMs (Alternative Investment Market) shares, have recently been allowed into ISA's, and any opportunity to invest into a tax free environment has to be a good thing.
Importantly though, investment in AIMs Shares can now be used to reduce your Inheritance Tax bill. This is down to Business Property Relief, where certain shares (not all), can qualify. It is difficult for private investors to always identify which shares this is applicable to and it is right to point out that whether they do or not can change suddenly. Keeping track can therefore be difficult, and it is why there are managed AIMS funds which employ teams to undertake the assessment of each share.
Once purchased the AIMS Shares need to be held for two years and at the time of the owners death, at which point they should be exempt from inheritance tax.
AIM is the London Stock Exchange’s international market for smaller growing companies. A wide range of businesses including early stage, venture capital backed as well as more established companies join AIM seeking access to growth capital. It is, consequently, very important to stress that investment into AIMS shares is considered to be risky and only for those who are prepared to accept that they could lose their investment. After all, companies do fail, even established ones.
A potential tax savings vehicle, AIMS Shares are an investment that may well be beneficial for the right client, and if you would like to know more, then complete the CONTACT form below and we will be touch to see how we can make a difference to your finances