AIM Portfolio IHT Plan

Most clients get full relief from IHT after only two years.

Help your clients to:

Reduce IHT liability simply and effectively
Avoid the cost and delay of setting up a trust
Invest in qualifying AIM-listed companies
Benefit from the potential for equity-related returns

Reduce IHT liability without setting up a trust - Our experienced team has a proven track record

Overview

IHT is a worry for an increasing number of people, including many of your clients. Our AIM Portfolio Inheritance Tax (IHT) Plan is an elegant and effective way of reducing potential IHT liability.

We launched the plan in 2002 when we spotted an opportunity. Business property relief became available on unquoted companies, as well as on AIM shares.

In its first decade, its popularity as an IHT saving option for professional advisers and their clients soared. Here’s why: the average portfolio grew 23.7% over the five years.

Advantages over a trust

Trusts are the traditional answer to reducing IHT liability. However, effective as they are, they can be costly. They also entail a seven-year wait – with clients having only limited access to their investments in the interim. If their personal circumstances change, the knock-on effects can be disastrous.

Your clients can avoid all these disadvantages. All they have to do is invest in qualifying companies. By so doing, they can, under current tax rules, enjoy unlimited exemption from IHT. As business assets, the shares attract favourable tax breaks. The only qualification is that investors must have held the shares ifor at least two years, and continue to do so going forward. It’s that simple.

An experienced team

Your clients will be in safe hands. The plan has a proven track record of success, and so do the team members who manage it. AIM investment is their specialist subject.

The risks

So much for the upsides, now for the down. The AIM Portfolio IHT Plan is a higher risk, long-term investment. The AIM market is primarily designed for smaller or emerging companies. Its rules are less stringent than the official Stock Exchange list. Reliable information on company value and the corresponding risks for your clients can be hard to come by. Moreover, converting AIM shares into liquid assets can be an uphill – and sometimes impossible – struggle.

Remember too that an AIM company can revert to private status. If this happens, the shares may become impossible to trade or value and the protections offered by AIM will no longer apply. You should also be aware that tax reliefs may change at any time.

The next steps

Download the associated literature from this page to help you assess the suitability of this service for your client.
Call Chris Sandford on 020 7597 1038 or send an email