Investing in AIM for tax efficient growth

AIM Shares

AIM, the London Stock Exchange’s international market for smaller growing companies, is home to just over 800 companies.

There are now hundreds of AIM (formerly the Alternative Investment Market) companies with robust business models and a history of profitability, cash generation and attractive dividends. Many of these excellent businesses have seen their shares soar over the past few years, far outperforming larger but lower growth companies on the main UK stock market.

Building a balanced, well diversified portfolio is key to tax planning success

Investment in AIM companies for Inheritance Tax planning purposes is all about constructing a well-balanced diversified portfolio of Business Property Relief qualifying AIM shares, not just about individual stock selection. AIM portfolios managed by Fundamental Asset Management have delivered outstanding returns since inception in 2004. AIM investments can also be included in ISAs with ISA Transfers facilitating tax efficient investment in AIM stocks.

AIM Shares include famous and well-managed companies

Household names like Fever-Tree Drinks, the world’s leading supplier of premium carbonated mixers, Nichols, owner of the Vimto brand and Hotel Chocolat, the premium chocolate maker and retailer, are all quoted on AIM and potential investments in an AIM Inheritance Tax portfolio.

Scores of other less well know, but well-managed firms offer year-on-year capital growth. CVS Group, the veterinary services provider, RWS Group, the specialist patent translator and James Halstead, the commercial flooring company have been stalwarts of our AIM portfolios for many years offering fantastic returns.

For every AIM company that has disappeared from sight there have been 10 that have more than doubled or trebled in size.

Our ethos and track record in AIM

Fundamental Asset Management has extensive experience in investing in AIM shares and has delivered outstanding returns to its clients since 2004, significantly outperforming the AIM Index. While our focus is on growth, our investment ethos for AIM IHT Portfolios is conservative and value based. At its foundation is our in depth, in-house research, which includes visiting and meeting senior management of up to 100 companies each year.

Portfolios are well diversified by name and sector (typically 20-30 names), for traditional portfolio diversification reasons as well as possible liquidity concerns. Stocks are selected from a list of AIM companies that have undergone a stringent screening and research process by our in-house team and benefit from Business Property Relief. Our philosophy is very much buy and hold; we are not frequent traders.

For further information on our service click here

To benefit from our expertise investing in AIM please call us on 01923 713890.


In the AIM Blog

Another month, another rise in Inheritance Tax receipts for HMRC

23 May 2023

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… Read more

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