TaxPersonal TaxAIM investment offers IHT reprieve

AIM investment offers IHT reprieve

Investments held in ‘junior’ market for two years exempt from IHT tax

Investing in an
AIM-listed
company
could you reduce a taxpayers inheritance tax bill if they are held
for more than two years, the Daily
Telegraph
reported.

According to the report, AIM stocks are generally regarded as more risky than
those with a full listing on the
London Stock Exchange, but if
they held in the ‘junior stock market’ for at least two years they become exempt
from inheritance tax – giving a potential 40pc tax saving and allow the investor
to retain ownership of their assets.

Anthony Scott of private client stockbrokers Charles Stanley, which offers an
Inheritance Tax Portfolio Service, said: ‘When we first launched our AIM
inheritance tax service in October 2003, our first client was an elderly lady
with £500,000 to invest.

‘She would have seen this reduce to just £300,000 after inheritance tax but
by investing in the Aim now has a portfolio worth £820,000 – and all of that is
free of inheritance tax.’

Further reading:

New AIM rules target below par nomads

FTSE4Good tightens index entry

Nomads’ rule-book set for release

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