Case Study

Client who wants an inheritance tax efficient ISA

For investment professionals only

Mark is in his 70s and is single. During his working life he accumulated a stocks & shares ISA worth £200,000. Mark has enjoyed tax-free income and capital gains on the investment through the ISA wrapper but is now starting to think about the potential inheritance tax bill on his estate reducing what will be left to his beneficiaries. Mark would like to retain control of the assets and does not want to pay an excessive amount to setup any solution. As such, a trust or a life assurance policy would be inappropriate.

Solution

Mark could make a direct transfer of his existing main market holdings into AIM holdings with Fundamental Asset Management through our AIM IHT ISA portfolio. Mark will retain access and control of his assets and the new AIM investments will continue to be held in an ISA with tax-free income and CGT on growth. However, in addition to this the portfolio should now qualify for 100% IHT relief after 2 years.

Fact

Like main market stocks, AIM stocks can be held within an ISA and benefit from no CGT or Income tax on growth. However, AIM stocks have the added benefit of qualifying for business relief and avoiding 100% of inheritance tax.

  • Income & Growth using AIM’s dynamism & opportunities
  • TAX No IHT if held for two years. Available as an ISA
  • PERFORMANCE 18-year performance Track record
  • ACCESS Client retains control of assets
  • PLATFORM ACCESS Available on key platforms
  • LOW COST Only 1%+VAT through a platform

For enquiries, please reach out to Jonathan

Jonathan Bramall

Jonathan is a Business Development Manager at Fundamental Asset Management. His role includes assisting clients and intermediaries. Jonathan has over 12 years’ experience in the finance industry. Over that time, Jonathan has worked for Barclays, Metro Bank and Moneycorp. Jonathan has been a Bank Manager as well as a Relationship Manager having looked after individuals and businesses of every shape and size.

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Our investment services may not be suitable for everyone, and potential investors should fully understand the risks involved. We therefore always recommend investors seek independent advice before making an investment. Past performance is no guide future performance, and the value of any investment may fall as well as rise and investor may not get back the full amount invested. Tax benefits will depend on circumstances and tax rules and regulations are subject to change. Please read more here.

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