PODCAST: Listen to Fundamental Asset Management’s Chris Boxall, Stephen Drabwell and Jonathan Bramall as they explore “What does the Budget mean for AIM and IHT planning?”. They answer questions sent to them on the topic of the Budget and its impact on Inheritance Tax Planning and AIM.

You can hear the podcast by clicking the image below. Lower down this page are the timings for when various questions are asked.

TIMESTAMPS:
00:00 – Intro
01:06 – Headline Changes & News
03:07 – Q1 Million £ limit on BR 50% reduction?
03:49 – Q2 Replacement provisions
04:56 – Q3 Will fund holders lose existing banked time by moving to “pure” BR plans?
05:51 – Q4 When do changes start? Is there a list of qualifying shares? Change to Income Tax and Capital Gains Tax on dividends?
08:22 – Q5 Holding AIM portfolio in SIPP
10:05 – Q6 Investment in forestry
11:10 – Q7 Will there be any retrospective action taken?
12:07 – Q8 Advisers facing ‘Ambulance chasers’?
15:28 – Q9 Estate liable for CGT then Income Tax?
16:23 – Q10 Gifting to Children & Grandchildren
18:35 – Q11 Where do you believe future interest will come from?
21:31 – Q12 Does it make sense to still hold AIM shares?
23:44 – Q13 Will changes encourage companies to jump from AIM?
24:55 – Q14 Do you think AIM market will deteriorate?
25:44 – Q15 Should companies advise if they are eligible for IHT relief?
26:32 – Q16 Can you estimate proportion of IHT AIM investments?
29:26 – Q17 Practical steps from all parties to stimulate AIM?
31:44 – Q18 Unfair that tax changes will affect retrospective investments
34:53 – Q19 Are we thinking of providing other IHT relief investments products?
36:53 – Q20 Where do long term investors in AIM to get full IHT relief?
37:58 – Summary & Closing comments

Disclaimer: This podcast, all opinions and information are for educational purposes only and do not constitute investment advice. Trading and investing carries a high level of risk and are not right for everyone. If you need financial advice, consult with a regulated financial adviser in your country before making any decisions.

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.

PODCAST: Listen to Fundamental Asset Management’s Chris Boxall, Stephen Drabwell and Jonathan Bramall as they explore “What does the Budget mean for AIM and IHT planning?”. They answer questions sent to them on the topic of the Budget and its impact on Inheritance Tax Planning and AIM.

You can hear the podcast by clicking the image below. Lower down this page are the timings for when various questions are asked.

TIMESTAMPS:
00:00 – Intro
01:06 – Headline Changes & News
03:07 – Q1 Million £ limit on BR 50% reduction?
03:49 – Q2 Replacement provisions
04:56 – Q3 Will fund holders lose existing banked time by moving to “pure” BR plans?
05:51 – Q4 When do changes start? Is there a list of qualifying shares? Change to Income Tax and Capital Gains Tax on dividends?
08:22 – Q5 Holding AIM portfolio in SIPP
10:05 – Q6 Investment in forestry
11:10 – Q7 Will there be any retrospective action taken?
12:07 – Q8 Advisers facing ‘Ambulance chasers’?
15:28 – Q9 Estate liable for CGT then Income Tax?
16:23 – Q10 Gifting to Children & Grandchildren
18:35 – Q11 Where do you believe future interest will come from?
21:31 – Q12 Does it make sense to still hold AIM shares?
23:44 – Q13 Will changes encourage companies to jump from AIM?
24:55 – Q14 Do you think AIM market will deteriorate?
25:44 – Q15 Should companies advise if they are eligible for IHT relief?
26:32 – Q16 Can you estimate proportion of IHT AIM investments?
29:26 – Q17 Practical steps from all parties to stimulate AIM?
31:44 – Q18 Unfair that tax changes will affect retrospective investments
34:53 – Q19 Are we thinking of providing other IHT relief investments products?
36:53 – Q20 Where do long term investors in AIM to get full IHT relief?
37:58 – Summary & Closing comments

Disclaimer: This podcast, all opinions and information are for educational purposes only and do not constitute investment advice. Trading and investing carries a high level of risk and are not right for everyone. If you need financial advice, consult with a regulated financial adviser in your country before making any decisions.

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.

On the back of the first Labour Government Budget for 14 years Fundamental Asset Management have put together an initial response relating to AIM investments.

From April 2026, AIM Shares will only benefit from 50% relief as opposed to 100% relief currently. This means AIM shares will be taxed at an effective 20% Inheritance Tax rate from 6th April 2026.

Other Business and Agricultural assets will still benefit from 100% relief for the first £1 million and thereafter will receive 50% relief, again an effective rate of 20%.

It is our understanding that the £1m threshold will NOT apply to AIM shares.

While we would have preferred 100% relief to remain, we are pleased that the relief hasn’t been removed completely, as was speculated, and still offers compelling reasons to invest in AIM.

The AIM market clearly shares our view as we are seeing a significant rally today in our AIM portfolios. Investors had clearly been worried about the potential scrapping of the relief in recent months and AIM had significantly underperformed other markets. The changes made today should also put an end to speculation for several years to come.

In other changes to Inheritance Tax, bands have been frozen for another two years to 2030 likely resulting in more estates paying Inheritance Tax and inherited personal pensions will be subject to Inheritance Tax.

There were also changes to Capital Gains Tax announced. From today, the lower rate will increase from 10% to 18% and the higher rate from 18% to 24%.

ISA allowances have been frozen until 2030. The limit will remain at £20,000 for ISAs, £4,000 for Lifetime ISAs and £9,000 for Junior ISAs and Child Trust Funds.

A further potential (positive) upshot of the Budget in regards to AIM shares was that inherited personal pensions will be subject to Inheritance Tax.

As ever with a Budget, it will take some time to fully digest the details but on the surface, solely looking at it from the perspective of our portfolios, the opportunities look positive.

To discuss the above, please contact us on [email protected] or call 01923 713 890

REPORT: In case you missed it, we thought you might be interested in a recent report commissioned by the London Stock Exchange that looked at the economic impact of AIM.

Amongst other findings, the report found that in 2023, AIM companies contributed £35.7 billion gross value added to UK GDP.

These findings highlight the potential for AIM to make a valuable contribution to the Labour Government’s mission to support the economy. However, the report emphasises that if AIM is to play a part in this, the Government needs to ensure that the comprehensive and well-calibrated package of fiscal incentives and reliefs are maintained.

The Economic Impact of AIM report was commissioned by the London Stock Exchange and written by Grant Thornton UK LLP. It highlights the significant contributions of AIM companies to the UK economy. Despite challenges such as the COVID-19 pandemic, AIM has continued to support business growth by providing access to capital for smaller, ambitious companies. Since its inception in 1995, AIM has supported over 4,000 companies, raising a total of £135 billion.

The report emphasizes AIM’s role in fostering a diverse and resilient business environment. It notes that 83% of new admissions since 2015 have been UK-incorporated companies.

AIM’s contribution to the UK economy is substantial, with the market enabling companies to achieve significant growth and development. The report also compares the latest data (2023) with pre-COVID figures (2019), providing a comprehensive view of AIM’s performance and resilience.

Overall, AIM continues to play a crucial role in supporting the UK economy by facilitating business growth, providing investor opportunities, and contributing to economic stability and diversity. The comprehensive and well-calibrated package of fiscal incentives and reliefs play a key role in spurring these achievements on.

FIND OUT MORE
To find out more about the benefits of AIM, please speak to our Business Development Manager, Jonathan Bramall, via email [email protected] or phone 01923 713 894.

CEO of the London Stock Exchange, Dame Julia Hoggett, has spoken to the Treasury in favour of AIM and why Business Relief has become an important source of “capital for AIM companies”.

Sky News reported that Dame Julia told the Treasury what immense value AIM brings to this country and why Business Relief should continue.

Chris Boxall, portfolio manager at Fundamental Asset Management, welcomed Dame Julia’s intervention. “We have been calling for the LSE to begin shouting about the merits of AIM and the value that Business Relief delivers for the UK economy for some time.

“Back in February, I wrote to Dame Julia and made four recommendations, including to ‘Run a dynamic marketing campaign highlighting the success of companies on AIM – aimed at private investors and the public at large (not just institutional investors).’ This intervention is definitely filed under ‘Better Late Than Never’.”

To read the Sky News article, click here.

FIND OUT MORE
To find out more about the benefits of AIM, please speak to our Business Development Manager, Jonathan Bramall, via email [email protected] or phone 01923 713 894.

With the Bank of England cutting their base rate for the first time in over 4 years; how does a Bank of England base rate cut help small caps?

1. Lower Borrowing Costs: When the base rate is cut, it generally leads to lower interest rates on borrowing. This makes it cheaper for small-cap companies to borrow money for expansion, operations, or other investments. This can lead to increased productivity, job creation and growth more generally. It also makes it cheaper for consumers and other businesses encouraging spending and investment.

2. Increased Consumer Spending: Lower interest rates can boost consumer spending as people have more disposable income due to lower mortgage and loan payments. This can increase demand for products and services offered by small-cap companies, increasing demand and helping businesses grow.

3. Improved Investor Sentiment: Lower interest rates can make equities more attractive compared to fixed-income investments like bonds or savings accounts that are attractive when interest rates are high. This can lead to increased investment in small-cap stocks, driving up their share price.

4. Improved Confidence: A rate cut can signal that the Bank of England is taking action to support the economy, which can boost confidence among consumers and businesses. This increased confidence can further stimulate spending and investment.

5. Weaker Currency: Lower interest rates can lead to a depreciation of the national currency, making exports cheaper and more competitive internationally. This can boost export-driven growth. The Fundamental Asset Management AIM portfolios have many exporters who do well when sterling is weaker.

The latest Fundamental Asset Management webinar also covers the impact of falling interest rates on small caps. You can watch it by clicking here.

FIND OUT MORE
To find out more about the benefits of AIM, please speak to our Business Development Manager, Jonathan Bramall, via email [email protected] or phone 01923 713 894.

If you are wondering how the results of the General Election will impact small caps, watch Fundamental Asset Management’s webinar on Tuesday 16th July at 3pm “False start or are small caps up and running?”

Fundamental’s Chris Boxall, Stephen Drabwell and Jonathan Bramall will review the impact of the General Election result. They will also look at whether small caps have had a false start or if they are now up and running?

Your seat can be reserved for the webinar “False start or are small caps up and running?” by clicking here. This will also allow you to watch the webinar on demand after the event.

The webinar is CPD eligible.

Pre-registering will also mean you can view it on demand.

Please submit any questions you would like to be covered via email [email protected]

FIND OUT MORE
To find out more about the benefits of AIM, please speak to our Business Development Manager, Jonathan Bramall, via email [email protected] or phone 01923 713 894.

Recent research has provided compelling evidence that within each tax year, early ISA (Individual Savings Account) investors significantly outperform those who invest in their ISA later in the tax year.

THE POWER OF DAY ONE INVESTMENTS
New data is clear; early investments in ISAs significantly outperform according to recent research from Hargreaves Lansdown. The research looked at a decade of investing clearly showed, individuals who maximised their ISA allowance on the first day of the tax year every year have seen their investments soar to a superb £360,500.

PROCRASTINATION COSTS RETURNS
In contrast, those who waited to invest until the last day of the tax year, accumulated a lesser £322,500. The substantial difference, highlighting the cost of delay.

TIMING MATTERS
The conclusion from the research was unequivocal: timing matters. By investing early, you’re putting your money to work sooner, capitalising on a full year’s worth of potential growth. As we embark into the new tax year, let’s keep this lesson in mind and wherever possible be the early birds of the ISA world.

HOW HAS THE MARKET BEEN?
With the research in mind, it is also a good time to review what the market did in the 1st Quarter of 2024. Join us for our next free webinar on Wednesday 24th April at 3pm “Q1 REVIEW – WHAT HAPPENED TO AIM?” Click here to register. The webinar is CPD eligible. Submit your questions to [email protected]

THE PROFESSIONAL INVESTOR PODCAST – EPISODE 2
In Episode 2 of The Professional Investor Podcast; Fundamental Asset Management’s Chris Boxall explains how a professional investor constructs an investment portfolio (which could be held in an ISA). Listen to it here or subscribe wherever you get your podcasts so you don’t miss a future episode.

FIND OUT MORE
To find out more about the benefits of AIM, please speak to our Business Development Manager, Jonathan Bramall, via email [email protected] or phone 01923 713 894.