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.

HMRC today announced Inheritance Tax (IHT) receipts are £300 million higher than the same period a year earlier, totaling £3.2 billion.

With the government freezing IHT thresholds until at least April 2028, this trend looks set to continue.

Commenting on the HMRC figures, Fundamental Asset Management’s Chris Boxall said: “HMRC has once again announced a record increase in Inheritance Tax receipts. With few other solutions available, investing in Business Relief qualifying companies remains popular with advisers and investors to mitigate future Inheritance Tax. If shares in these companies are held for two years, and still held upon death, no Inheritance Tax is paid on the investment.

Many AIM companies meet the Inheritance Tax qualifying criteria and with the AIM market down substantially over the past 2 years and the valuations of many good quality AIM companies looking extremely attractive, it could be great time to invest and save future Inheritance Tax.”

Why does Private Equity love AIM?
The AIM market has had a challenging time over the last 2 years. However, while many investors have been steering clear of AIM, Private Equity has been taking advantage of the growing number of bargains, with yet another offer this week for an AIM company. On Tuesday 3rd October at 3pm, the founders of Fundamental Asset Management will be exploring the topic “What does Private Equity see in AIM?”. Your seat can be reserved by clicking here. This will also allow you to watch the webinar on demand after the event.

The webinar is CPD eligible.

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

FURTHER INFORMATION
If you or your clients would like to speak to one of our portfolio managers, please contact Business Development Manager, Jonathan Bramall at [email protected] or on 01923 713 894

Join Fundamental Asset Management’s Co-Founders Chris Boxall & Stephen Drabwell on Tuesday 31st January at 3pm as they look at the risks and opportunities for AIM in 2023.

They will review 2022 and look into their crystal ball for 2023. What happened to AIM in terms of its size and overall performance? The webinar is titled What does 2023 have in store for AIM? This webinar is CPD eligible.

To register your spot and to be able to watch it after the event, please click here.

TOPICS TO BE COVERED:
– Brief introduction to AIM for Inheritance Tax (IHT) planning
– Recap on performance in 2022
– AIM IHT investing universe 2023
– Company valuations
– Results and updates January 2023
– Growth or Income AIM IHT portfolios?

For more information about reducing Inheritance Tax using Business Relief (also known as Business Property Relief) click here.

To find out more about the benefits of investing in AIM shares for IHT planning purposes, please get in touch via email at [email protected] or phone 01923 713 894

In this video interview, Chris Boxall, co-founder of AIM specialist investment manager Fundamental Asset Management, discusses the opportunities for income investors in AIM IHT ISA portfolios.

With AIM companies set to pay out just over £1.2 billion in dividends in 2022 there are plenty of high yielding AIM stocks to choose from, although prospective investors need to be wary of certain factors as Chris highlights.

You can watch the interview by clicking the image above.

The interview coincides with the launch of Fundamental’s new AIM IHT Income Portfolio service which was also covered in a recent webinar here.

DIFFERENCES BETWEEN THE EXISTING AIM IHT GROWTH PORTFOLIO VS THE AIM IHT INCOME PORTFOLIO?

The existing AIM IHT Growth Portfolio is a discretionary investment management service where clients can obtain 100% mitigation from Inheritance Tax, benefit from the capital growth afforded by the AIM market and retain control of their assets. Fundamental has been managing this portfolio since inception in 2004.

The new AIM IHT Income Portfolio is designed for clients to still take advantage of the potential Inheritance Tax relief afforded by the AIM market and retain control of their assets, at the same time as providing a greater level of dividend income.

To find out more about the benefits of investing in AIM, or if you wish to discuss the current situation, please speak to our Business Development Manager, Jonathan Bramall, via email [email protected]  or phone 01923 713 894.

The pound is trading near its lowest level against the US dollar since 1985, a year which also saw Mikhail Gorbachev become the leader of the Soviet Union, Boris Becker become the youngest winner of the Wimbledon Men’s singles title and England win the Ashes.

The popular press is revelling in the current gloomy economic backdrop and while times are indeed challenging, notably from an energy and inflationary perspective, the UK’s weak currency could offer a terrific opportunity for UK exporters.

Thankfully there are plenty of these on AIM, with many having seen their share prices and valuations tumble over recent months, offering a compelling buying opportunity for patient investors, particularly with those with an eye on the Inheritance Tax planning benefits.

One of our long-term AIM portfolio holdings AB Dynamics has seen its shares fall substantially from 2021’s highs. With its headquarters in Bradford-on-Avon, near Bath, AB Dynamics is a manufacturer of advanced testing, simulation and measurement products for the global automotive sector – we covered this excellent company previously in a Blog here. AB Dynamics is a major beneficiary of the transition to electric vehicles, supporting nearly all the world’s car manufacturers. In 2021 over 90% of its revenue was derived from outside the UK, including 24% from North America and 50% from the Asia Pacific region. With its main manufacturing facilities in the UK, the weak pound could therefore be helpful to business.

AIM going cheap, especially for US buyers

The weak pound and tumbling share prices also make UK listed companies more appealing to overseas buyers and there have been several offers and recommended bids for UK Technology companies over the summer, including two on AIM.

This week brought news that GB Group, experts in digital location, identity verification and fraud software and one of our newer AIM portfolio holdings, is currently considering a possible cash offer from GTCR, a US-based private equity business.

Shares in GB Group hit a 5 year low in early July, despite not having had any operational issues and meeting the market’s expectations.

The share price of GB Group leaped in response to the latest news, but still remains well down on year highs, with many anticipating that rival bidders will emerge.

If share prices remain depressed, we anticipate that many other good quality UK listed AIM companies, will be snapped-up by cash rich overseas buyers.

As we commented in our previous Blog here, AIM’s well-established technology related companies, notably in the software arena, look particularly vulnerable to approaches, given their proven business models, cash generative attributes and largely debt-free balance sheets.

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

Our Webinar here covered many of the key questions clients ask when considering investing in AIM shares for Inheritance Tax Planning purposes. You can watch a recorded version of the webinar from the link here.

This video presentation here also provides a brief introduction to the Fundamental AIM IHT portfolio service.

Will your money help HMRC break another record?

HMRC’s latest figures released today show that Inheritance Tax (IHT) receipts for April 2022 to July 2022 are £2.4 billion; £0.3 billion higher than in the same period a year earlier.

Will your family have to pay IHT to HMRC after you have passed on? If this is something you wish to help your loved ones avoid, investing in qualifying AIM stocks could be for you.

If a client invests in certain AIM shares that qualify for Business Relief for 2 years and provided they are still held at death, the estate will not pay Inheritance Tax on them – a saving of 40%. Fundamental Asset Management’s AIM Inheritance Tax portfolio can help you plan for your family’s future.

Inheritance Tax mitigation

A Fundamental AIM Inheritance Tax portfolio achieves 100% mitigation from Inheritance Tax after only two years. Not seven years as is the case through a gifting or trust approach.

Existing ISAs can also be transferred to Fundamental providing greater potential savings for your loved ones.

This video presentation here provides a brief introduction to the Fundamental AIM IHT portfolio service, while our webinar here reviews the second quarter of the year and discusses our ESG and PRI developments.

To find out more about the benefits of investing in AIM for Inheritance Tax planning purposes, where sustainability is also a key consideration, please speak to our Business Development Manager Jonathan Bramall via email [email protected]  or phone 01923 713 894.

Fundamental Asset Management
www.fundamentalasset.com

No initial fee for advised clients who invest Direct

To further support advisers, from Monday 27th June, advised clients who directly invest in Fundamental Asset Management’s AIM IHT Portfolio Service will no longer be charged an initial fee.

The scrapping of any initial fee is part of our ongoing commitment to support advisers and aligns with our fee structure for portfolios managed through wrap platforms (Eg Abrdn Elevate & Wrap, Funds Network, Nucleus, Standard Life, Transact etc.).

If you would like an illustration, please contact our Business Development Manager Jonathan Bramall via email [email protected] or phone 01923 713 894.

For more information about reducing Inheritance Tax by using Business Relief (also known as Business Property Relief) click here.

Fundamental Asset Management
www.fundamentalasset.com

In the eighth of our series – The Fundamentals – about going back to the basics of investing in AIM shares for Inheritance Tax (IHT) planning purposes, we look at the Fundamental Asset Management Investment Team.

Since 2004, Fundamental Asset Management portfolios have been managed by our two founders Chris Boxall and Stephen Drabwell.

Chris and Stephen are experienced investment managers who have been managing the portfolios in-house since inception. Chris and Stephen conduct all research supported by external analysts (former fund managers, private investors and business people).

STEPHEN DRABWELL

STEPHEN DRABWELL

Stephen Drabwell is a co-founder, major shareholder and director of Fundamental Asset Management. Stephen oversees the trading, asset allocation and operational aspects of managing the many AIM IHT portfolios that the company oversees. Prior to founding Fundamental, Stephen started his career at the investment bank, UBS in 1990. Following 9 successful years at UBS, which saw him progress to becoming a sales trader on the European portfolio trading desk, Stephen joined Washington Asset Management where he was senior trader for a US Long/short hedge fund. Stephen helped grow the fund from $30m to $250m before leaving in 2004 to start Fundamental.

CHRIS BOXALL

CHRIS BOXALL

Chris Boxall is a co-founder, major shareholder and director of Fundamental Asset Management. Chris qualified as a Chartered Accountant in 1989 and has primary responsibility at Fundamental for company research and portfolio management for the firm’s equity portfolios, with particular focus on AIM. Prior to Fundamental Chris oversaw activities at the Washington Financial Group, where he was a key member of the investment management team of the Washington US Fund Ltd, a successful equity fund.

For more information about reducing Inheritance Tax by using Business Relief (also known as Business Property Relief) click here.

If you have any questions or would like to speak with Stephen or Chris, please do not hesitate to contact our Business Development Manager Jonathan Bramall via email [email protected] or phone 01923 713 894.

The Fundamentals Series

• Introducing The Fundamentals series
• The Fundamentals #2: How to use ISAs for Inheritance Tax (IHT) planning?
• The Fundamental #3: The perils of exit fees & support for a client’s estate
• The Fundamentals #4 – What is the Fundamental AIM Inheritance Tax Portfolio?
• The Fundamentals #5 – How to use AIM to stop HMRC taking money from your family?
• The Fundamentals #6: How long do you need to hold a qualifying stock for to receive IHT relief?
• The Fundamentals #7 – 10 reasons to invest with Fundamental Asset Management

Our Educational Webinars also provide plenty of further information.

Fundamental Asset Management
www.fundamentalasset.com

In the seventh of our series – The Fundamentals – about going back to the basics of investing in AIM shares for Inheritance Tax (IHT) planning purposes, we look at  reasons to invest with Fundamental Asset Management.

If you or your client already invests with us, we hope you don’t mind us reminding you what makes us different.

10 Reasons to invest with Fundamental

1. Same portfolio managers since founding in 2004.

2. Our in-depth research seeks out the best investment opportunities on AIM.

3. Experience and expertise, gained through several stock market cycles, along with our outstanding customer service, makes Fundamental Asset Management one of the most successful AIM managers for tax efficient investing in the UK.

4. Personal service with resources such as market insights and direct contact with our portfolio managers.

5. “Core and Satellite” investing approach provides exposure to larger AIM stocks as well as smaller companies with higher growth potential.

6. Excellent value for our clients; a fully tailored portfolio service.

7. Client retains access – assets remain in client’s own name – so no loss of control and client has freedom to redeem part or all if needed.

8. Significantly outperformed the AIM market since inception in 2004, but monthly returns have exhibited less volatility.

9. Support to estates after a client has passed away. At a difficult time, we provide the information HMRC requires at no additional charge.

10. One of the most competitively priced products in the market providing excellent value.

For more information about reducing Inheritance Tax by using Business Relief (also know as Business Property Relief) click here.

If you have any questions, please do not hesitate to contact our Business Development Manager Jonathan Bramall via email [email protected] or phone 01923 713 894

The Fundamentals Series

• Introducing The Fundamentals series
• The Fundamentals #2: How to use ISAs for Inheritance Tax (IHT) planning?
• The Fundamental #3: The perils of exit fees & support for a client’s estate
• The Fundamentals #4 – What is the Fundamental AIM Inheritance Tax Portfolio?
• The Fundamentals #5 – How to use AIM to stop HMRC taking money from your family?
• The Fundamentals #6: How long do you need to hold a qualifying stock for to receive IHT relief?

Our Educational Webinars also provide plenty of further information.

Fundamental Asset Management
www.fundamentalasset.com