Benefit from AIM
AIM for inheritance tax planning
AIM for Inheritance Tax Planning offers clear, concise, objective, commentary on AIM companies that may be of particular interest for those looking to invest in AIM for Inheritance Tax planning purposes.
AIM, a great British success
AIM the junior market of the London Stock Exchange, has been a roaring success over the last few years and is now home to over 1,600 companies.
Even more importantly, AIM is no longer just about highly speculative micro caps that may never generate a profit - or cash for that matter! As of January 2008 there were over 250 companies on AIM with a market capitalisation of more than £100m and over 450 companies with a market capitalisation of over £50m.
Even more significantly, shares of the larger companies are highly liquid with significant volumes traded each day.
AIM offers some great tax breaks
Investment in qualifying AIM trading companies can attract 100% relief from inheritance tax provided that the investment is held for at least two years – that’s about the biggest tax break this government has ever given us so it seems like a good idea to use it.
..and that’s not all.
Investment in the Enterprise Investment Scheme (EIS) shares of qualifying AIM companies enables investors to benefit from both EIS relief and IHT relief.
AIM shares for IHT planning purposes have been star performers
Some of the most attractive AIM shares for IHT planning purposes have been star performers over the last few years.
A well balanced, well diversified portfolio is key
Investment in AIM companies for IHT planning purposes appears to be all about constructing a well balanced diversified portfolio not just about individual stock picks.
Our commentaries generally focus on those AIM companies with understandable business models, assets, profits and cash flow generation. We know that IHT planning investors seek out companies with these characteristics with the result that they generally outperform over the long term.
If we are ever unsure about the qualification status we also try and ask the company and if necessary HM Revenue.
The individual investor in AIM receives all the tax benefits
Even the large AIM stocks remain off limits to the large investment houses as they simply aren’t big enough to satisfy their ravenous need for a large chunk of shares.
Furthermore tax benefits are only available to individual UK tax paying investors holding shares in their own name (through a nominee is fine)
So AIM really is a market where the small private investor should have the upper hand.
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