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

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

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.

AIM isn’t a market that’s generally considered for its dividend and income attractions, and we have always expressed caution on AIM companies paying out high dividends, when they should be putting their cash to better use.  However, the steep decline in share prices of many good-quality AIM companies has seen dividend yields soar to levels not seen since we started managing AIM IHT planning portfolios back in 2004 and the AIM of today is thankfully a far better market than it was back then.

With many AIM companies sitting on plenty of supportive cash, but their share prices languishing, these high yielders also have growth attractions.

We therefore thought it was an appropriate time to reassess the dividend and income potential of AIM companies for IHT planning purposes.

Join us for our webinar AIM IHT portfolios for INCOME? Is it worth it? on 25^th November at 3pm. We will discuss the benefits and potential pitfalls of investing in Inheritance Tax qualifying AIM companies for income generation and the potential yield available.

The webinar will cover a number of topics including:

• State of the AIM market
• The investable universe of big dividend paying AIM stocks
• Dividend yields and dividend cover
• Quality of AIM companies
• Interest rate considerations
• Fundamental Asset Management’s high yield AIM portfolio solution
• Sectors and industries.
• Portfolio management

Sign up to the webinar from the link here

The Fundamental AIM IHT 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.

You can find out more about Fundamental Asset Management’s high performing AIM IHT ISA and AIM Inheritance Tax portfolio service, which has been delivering exceptional investment returns for more than 18 years, from the link here.

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.

It has been a painful time for AIM investors across the board. Fundamental Asset Management portfolio managers have been giving their thoughts and insights into where the market is, how we got here and where it might be going. In addition, in a recent interview with Jeremy Naylor on IGTV, co-Managing Director Chris Boxall talks about specific stocks, the potential bargains and things to watch out for.

FUNDAMENTAL ASSET MANAGEMENT WEBINAR OCTOBER 2022

To view the new webinar please click on the following link – AIM: cheap for good reason or bargains to be snapped up? In the webinar, AIM in Q3 as well as Year To Date is reviewed, why we are where we are and what lies ahead.

IGTV INTERVIEW

For the interview with Jeremy Naylor click on Bargain hunting on AIM. In the interview, Jeremy Naylor of IGTV and Chris Boxall of Fundamental Asset Management, discusses potential bargains on AIM following recent falls.

AIM IHT PORTFOLIO

The Fundamental AIM IHT 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.

You can find out more about Fundamental Asset Management’s high performing AIM IHT ISA and AIM Inheritance Tax portfolio service, which has been delivering exceptional investment returns for more than 18 years, from the link here.

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.

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

The ISA deadline for 2021/22 is April 5^th, the tax year end. However, the latest date for receipt of ISA applications is 31^st March. Please contact us if you would like to discuss opening an AIM IHT ISA.

You have until the deadline to invest this year’s £20,000 savings allowance so as to benefit from no tax on dividends, interest and capital gains.

As we wrote about in our back-to-basics series The Fundamentals #2: How to use ISAs for Inheritance Tax planning; ISAs per se are not Inheritance Tax free, but they can become so by using a service such as the Fundamental Asset Management AIM IHT ISA Portfolio Service.

For more information, click here or watch the video below:

ISA DEADLINE & IHT PLANNING REMINDER

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

Fundamental Asset Management
www.fundamentalasset.com

Our last Blog here covered a stock market sell-off and what we are doing. This week we are doing things a bit differently.

Recently, we have received requests to go over some topics from the beginning to assist people who are trying understand what we do at Fundamental Asset Management as well as what AIM is, what opportunities it provides and how it can be used to help reduce Inheritance Tax (IHT).

Over the coming weeks, we will be going back-to-basics focusing on the fundamentals (pun intended!) of the AIM IHT Portfolio Service and indeed Fundamental Asset Management itself. We will be looking at how AIM could provide returns in the medium to long-term that put other investments in the shade as well as how Business Relief can be used for estate planning as well as some frequently asked questions around costs and a number of practical processes.

This week, The Fundamentals brings you a video we have put together; Fundamental Asset Management – An Introduction.

Topics covered include:

• Who Are We?
• What is AIM?
• AIM in 2021.
• AIM for outperformance.
• Business Relief & AIM – How it works.
• AIM IHT Investment Process – Investable Universe.
• AIM Investment Process – Core/ Satellite portfolio approach.
• AIM IHT Investment process – the issues!
• Benefits of a Portfolio – Not a Fund.
• AIM in 2022 – Difficult Start to the year.
• 2022 Opportunities so far.

In this video presentation, Chris Boxall, co-founder of AIM specialist investment manager Fundamental Asset Management, provides an introduction to the Fundamental AIM IHT portfolio service. The presentation covers Fundamental’s investment process and issues to be aware when investing in AIM for Inheritance Tax planning purposes. Chris also offers his thoughts on the outlook for AIM in 2022.

We hope you find it useful. 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

Fundamental Asset Management
www.fundamentalasset.com

The latest monthly AIM update from our associates Investor’s Champion highlights the continuing strong performance of AIM, with the total value of London’s growth market hitting an all-time high of £118 billion at the end of November.

November closed with 22 AIM companies valued at more than £1billion, three more than at the end of October and the most on record. The £billion brigade welcomed video game publisher Team17 Group and veterinary specialists CVS Group, both Fundamental AIM Inheritance Tax portfolio holdings.

The AIM index as a whole had another very strong month, rising 10.7% ending November up 9.6% for the year. That is a considerable achievement following the sharp falls in February as the pandemic impacted stock markets across the world.

What is all the more surprising about AIM’s continuing momentum is that it appears to counter the rotation to so-called ‘value’ stocks going on in other markets, reflected in the 12.3% rise in the month from the main UK index of 100 stocks, although this still remained 16.9% down for the year as a whole.

Despite AIM’s focus on younger, more rapidly growing companies and the seemingly stretched valuations for some AIM stocks, investors are evidently still prepared to pay up for the exciting growth prospects available on AIM, compared to the lower growth opportunities from many of the dinosaurs of the main UK stock market.

When investing in AIM for Inheritance Tax planning purposes we are drawn to the larger, more profitable and better-established AIM companies. This has seen our AIM Inheritance Tax portfolios miss out on the strong performance this year from some more speculative AIM stocks, notably in the area of healthcare and hydrogen fuel cells, however, we have still seen strong gains elsewhere.

Over the 5 years to date the AIM index has risen 47% (and our AIM Inheritance Tax portfolios are up even more) whereas the main UK market is up only 9.7%. We acknowledge that this excludes dividend income and the main UK market has yielded over 4% per annum over this period, however, 2020 has highlighted fragility of dividend payments for highly geared companies on the main UK stock market, many of whom have been forced to cut or postpone dividend payments.

It has been clear to us for a long time that many UK main market companies have failed to invest sufficiently in their businesses to support future growth, preferring instead to use available cash to pay dividends or support share buybacks. This is inherently wrong and has manifested in lacklustre growth and poor share price performance.

Many main market companies have the additional burden of needing to support large legacy pension commitments, which demand regular cash injections, something that does not apply to the vast majority of more youthful AIM companies.

Trading volumes on AIM also remained strong with £8.6billion of shares traded in November. This is a big number and counters the argument that AIM shares are illiquid!

Another £620m was raised in the month through secondary fund raises bringing the total for the year to £4.7billion. This compares to only £321m raised in the year to date through IPOs.  We only occasionally participate in IPOs across our AIM Inheritance Tax portfolios as we generally like to see companies prove themselves on public markets first, however, there are exceptions.

You can find out more about Fundamental Asset Management’s high performing AIM IHT ISA and AIM Inheritance Tax portfolio service, which has been delivering exceptional investment returns for more than 16 years, from the link here