AIM & Inheritance Tax Portfolio Service
There are many ways of reducing your taxable Estate. However, some of these can be expensive, complicated and result in you losing the benefits of the assets. Our IHT Portfolio Service is cost effective, simple, allows you to retain full ownership of your investments and also the income derived from them. Arnold Stansby & Co.’s inheritance tax portfolio service invests in portfolios made up of qualifying stocks quoted on the Alternative Investment Market (AIM). It should be noted that investments in AIM companies involve a higher degree of risk. We seek to reduce the risk through diversification.
What is AIM?
AIM (formerly the Alternative Investment Market) was launched in 1995 and is a submarket of the London Stock Exchange. The total market value of all companies listed on AIM is approximately £80bn. It is primarily intended for young and growing companies.
Following a change in legislation you can purchase Alternative Investment Market (AIM) shares via your ISA which will be free from capital gains tax, income tax and inheritance tax making AIM one of the most tax advantageous markets in the world.
Upon death, inheritance tax (IHT) is currently levied at a rate of 40% on all assets exceeding a total value of £325,000.
How does it work?
An AIM IHT Portfolio provides an alternative solution for individual investors with the opportunity to obtain full IHT relief after two years and enables investors to maintain control of their assets.
The portfolios are constructed on a bespoke basis and can be run in two separate ways, discretionary or advisory. By investing in select AIM companies for a minimum two year period we can mitigate the effects of Inheritance tax on your estate using a HMRC exception called BPR (business property relief). One of the great advantages to this plan is that any income generated by holding these shares is available for you to take as cash whilst the invested funds remain tax efficient. It’s also worth noting that if you were to require cash from this portfolio then there would be no penalty for selling the shares, however you would lose the time accrued towards achieving BPR.
Arnold Stansby & Co. has the ability to build IHT efficiency within existing accounts, including ISA’s, this means the portfolio can migrate smoothly rather than having to deposit a new lump sum.
As with all our other accounts Income payments can be set up at a frequency that meets your needs; we are very flexible when it comes to making your life run more smoothly.