The Professional Investor is a new podcast series which goes inside the mind of a UK based professional investor. It explores; the secrets of asset management, gives the inside scoop on the latest developments from the front line of the investment industry as well as analysis and opinion on what is going on in the economy.

For Episode 1 of The Professional Investor Podcast; the professional investor is Chris Boxall. Chris is co-founder and portfolio manager at Fundamental Asset Management.

Chris gives his opinion on the Budget and explains some of the changes he would like to see at the London Stock Exchange.

Chris has 25 years as a professional investor under his belt having worked in New York as well as the UK. Back in 2004, Chris and his colleague Stephen Drabwell brought an American approach to investing over to the UK when they founded Fundamental Asset Management. The firm as well as managing general portfolios, has a focus on smaller companies on AIM including running a specialist AIM for Inheritance Tax Portfolio Service. Chris is the long term editor of the popular research site Investor’s Champion.

Key topics:
• The Budget
• The London Stock Exchange
• The Financial Times coverage of Chris’ recommendations

Webinar: “How Do You Use AIM For Inheritance Tax Planning?”

Previous Fundamental education webinars

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Chris Boxall on LinkedIn

Fundamental Asset Management on LinkedIn

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.

ANOTHER RECORD
The latest data on tax receipts from HMRC shows that Inheritance Tax (IHT) receipts for April 2023 to December 2023 of £5.7 billion were £0.4 billion higher than in the same period a year earlier.

The 7.5% increase means the Treasury is on course to take record receipts of about £7.6 billion from IHT in the 2023/24 tax year, after surging to an all-time high of £7.1bn in 2022/23 – a £1 billion increase on 2021/22. This all results in more and more families are having to pay IHT.

Higher receipts since March 2022 are due to a combination of higher volumes of wealth transfers following recent IHT-liable deaths, recent rises in asset values, and the UK government’s decision to maintain IHT tax free thresholds at their 2020 to 2021 levels, up to and including 2027 to 2028.

A proven, effective and straightforward tax planning method to help mitigate Inheritance Tax is by investing in the shares of qualifying companies listed on AIM, which benefit from Business Relief (‘BR’). 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 BR 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.

WATCH OUR WEBINAR “AIM TO SOAR IN 24?”
Our latest webinar reviews 2023 and asks is “AIM to soar in ’24?” Watch it here.

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.

The latest data released by HMRC shows receipts for Inheritance Tax (IHT) has gone up while Stamp Duty receipts have declined. For the period of April 2023 to September 2023, IHT receipts have surged to £3.9 billion, marking a £400 million increase from the same period last year.

This rise can be attributed to the freezing of tax thresholds over the years, dragging more families into the IHT bracket. The requirement to pay IHT within six months after a person’s death poses a challenge, especially when the primary asset, such as a house, needs to be sold to cover the tax liability. Delays in the probate process and the current market conditions mean that individuals might incur interest charges until the property is sold.

Additionally, Stamp Duty receipts for the same period have experienced a significant decline, totalling £7.7 billion, which is £3.0 billion lower than the previous year. This drop is attributed to the slowing housing market which has seen house prices falling. The prevailing cost-of-living crisis and high mortgage rates indicate that there might not be a substantial improvement in the immediate future.

The interplay of frozen tax thresholds, delayed probate processes, and fluctuating housing market conditions underscores the challenges faced by individuals and families dealing with Inheritance Tax which is so often affected by property ownership. These factors create uncertainties, with families struggling to navigate the intricacies of estate management and tax payments amid these challenging times.

An established strategy for individuals concerned about IHT is using AIM listed companies which are eligible for Business Relief to reduce their potential liability. The easiest way to do this is using an AIM specialist firm that specialises in investing in AIM for IHT planning. For more information click here. Existing ISAs can also be transferred; keeping the ISA allowance while taking advantage of the Business Relief to reduce IHT potential liability.

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

INHERITANCE TAX RECEIPTS UP

HMRC data released this morning show Inheritance Tax (IHT) receipts reached £600 million in April 2023, which is £100 million higher compared to the previous tax year’s April figures.

Commenting on the rise, Jonathan Bramall, Business Development Manager at Fundamental Asset Management said:

“Due to years of increasing house prices, high inflation rates, and tax freezes, more families who do not consider themselves wealthy are now exceeding the threshold for IHT.”

A large factor in the increase in Tax receipts is down to more people being caught outside of the tax-free inheritance allowance known as the nil-rate band. Each individual can pass on up to £325,000 of their estate without being liable for any IHT. Amounts exceeding £325,000 may be subject to a maximum IHT rate of 40%. Despite inflation reducing the value of this relief by 32.8% since April 2009, and average house prices rising by nearly 85%, the nil-rate band has remained unchanged – meaning more estates are having to pay IHT to HMRC.

An established tactic for individuals concerned about IHT is using AIM listed companies which are eligible for Business Relief to reduce their potential liability. The easiest way to do this is using an AIM specialist firm that specialises in investing in AIM for IHT planning. For more information click here.

STAMP DUTY RECEIPTS DOWN

HMRC did see a fall in Stamp Duty receipts of £0.7bn compared to the same period in 2022. This is due to the property market being hit by a combination of factors including the cost-of-living crisis, the disastrous mini-Budget and Stamp Duty changes.

Fundamental Asset Management’s AIM Inheritance Tax portfolio service can help you leave more of your money to your family instead of HMRC. 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 today’s HMRC announcement that Inheritance Tax (IHT) Receipts are up £1billion to £7.1bn, Fundamental Asset Management give some tips for keeping the money you want to leave your family out of the Chancellor Jeremy Hunt’s hands. Fundamental’s portfolio manager, Chris Boxall explained:

“Using AIM for IHT is the easy, non-contentious way of getting IHT relief on investments on behalf of your estate when you pass away; keeping Jeremy Hunt’s hands (or whoever is the Chancellor at the time) off your money.”

Fundamental Asset Management’s Top Tips:

1)

Do you have old ISAs that are going to form part of your estate upon death? You might wish to transfer these into an AIM IHT Portfolio to save up to 40% of their value through IHT relief. Fundamental Asset Management accept transfers-in of old ISAs.

2)

Consider if “only” using this year’s ISA allowance is going to reduce your IHT liability as much as you want in the long run. You may also want to invest in a non-ISA AIM IHT portfolio to allow your family the opportunity to potentially inherit more of your money when the time comes.

3)

View the investment to be over at least a 5-year period. If you cannot afford to be without this money, it may be that this investment is not right at this time. It also potentially enables you to better see the investment opportunities AIM can deliver.

Remember, for your estate to not pay Inheritance Tax on the investment – a saving of 40% – your investment needs to be in certain AIM shares that qualify for Business Relief. The shares need to:

• Be held for 2 years or more and still held at death; and
• Be held in a company that still qualifies for Business Relief at the time of the investor’s death.

Fundamental Asset Management’s AIM Inheritance Tax portfolio service can help you leave more of your money to your family instead of HMRC. 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.