LSE rubbishes AIM tax fears

London Stock Exchange
has played down fears that its junior market,
AIM, is at risk of losing its tax benefits following last week’s Budget.

Concerns were raised following the introduction of powers enabling
HM Revenue & Customs
to determine what should be classified as a Recognised Stock Exchange (RSE).

AIM is currently not classified as an RSE, so is not subject to the same tax
rules as shares trading on the LSE main board. If HMRC were to change AIM’s
status, however, the market could lose its extended taper relief on capital
gains tax on shares and its exemption from IHT.

According to
the LSE has played down the concerns.

The LSE said in a statement: ‘There has been some third-party comment that
this change may affect the availability of tax reliefs for shareholders of
qualifying Aim companies. This is not the case and has been confirmed by the
government. The existing tax reliefs that apply to shares admitted to Aim will
continue to apply.’

Further reading:

London’s IPO fundraising outstrips New York’s by 50%

Main list move sparks fear of AIM FD cull

Rival to AIM hits London

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