Autumn Statement and Inheritance Tax

Despite many articles in the press in the run-up to today’s Autumn Statement, Inheritance Tax (IHT) was neither scrapped nor were thresholds changed.

With figures this week showing that the Treasury is on course to secure a record IHT take this year; if you want to save your family money on IHT when you pass away, you can use Business Relief by investing in qualifying AIM stocks.

What this means is if you buy and hold shares in such companies, you could potentially pass on those shares IHT free provided that:

• the shares are held for at least two years and are still held on death
• the company still qualifies for BPR at the time of the investor’s death

You could buy as few or as many shares as you wish. There is no upper limit or allowance. Provided the above conditions are met, the whole value of the investment – be it £10,000 or £10 million – should attract 100% IHT relief.

For those already invested, say it quietly, but we may have started to see the markets taking a tentative step towards turning the corner after a torrid time; however, “one swallow does not a summer make”.

As we know from back in 2020, the nature of AIM is such that large loses can be made up quickly – early that year saw falls in AIM of around 30% before ending the year with a rise of around 20%. Whether we are at the turning point in the market remains to be seen but the issue when it does move, is it can move very quickly, and with liquidity being limited, it means those invested, could end up being the only people who can take advantage of an invigorated market whenever it arrives.

AIM IN 2023: CHALLENGES AND OPPORTUNITIES

In a recent interview with IG’s Jeremey Naylor, Chris Boxall, co-founder of specialist investment manager Fundamental Asset Management, discusses AIM’s challenges in 2023 and suggests what prospective investors should be looking for in the current environment and also what they should expect, when investing in AIM and smaller quoted companies.

You can watch the interview by clicking here.

Companies discussed include AB Dynamics, CVS Group, Jet2 and RWS Holdings.

FURTHER INFORMATION

Fundamental’s AIM IHT ISA and General portfolio is a discretionary investment management service where clients can obtain 100% mitigation from Inheritance Tax, benefit from the capital growth and income afforded by the AIM market and retain control of their assets.

You can find out more about AIM ISAs here: ‘AIM ISA Explained’.

Fundamental now offers its standard AIM IHT Growth Portfolio, as well as its newer AIM IHT Income Portfolio service.

All portfolios are managed by the same team of managers and researchers that have delivered exceptional returns since the firm’s founding in 2004.

You can find out more from the link here or by contacting [email protected] or calling 01923 713894.