AIM Portfolio IHT Plan

Help your clients leave more to the people they love

  
 

The AIM Portfolio IHT Plan can reduce your client's Inheritance Tax (IHT) liability on assets passed on to the next generation and also aims to deliver outstanding long-term investment performance.

  • Reduce your client's tax exposure
    The AIM Portfolio IHT Plan is a discretionary managed service that invests in shares listed on the London Stock Exchange's Alternative Investment Market (AIM). These shares are classed as business assets and qualify for Business Property Relief (BPR), enabling your client to benefit from a reduction in IHT liability. 

  • Which of your clients would benefit?
    The AIM Portfolio IHT Plan is primarily aimed at individuals who are concerned that much of their wealth may not pass to the next generation because of an IHT charge on their estate. The plan is suitable for clients undertaking long-term investment planning and those with a restricted timescale to achieve IHT exemption.







Find out more

Mark Stevens

Head of Intermediary Services

To discover more about our AIM Portfolio IHT Plan and how we might be able to help you, please call our team or complete our contact form

An example of the possible savings for your client

Mrs Smith has an estate that includes an equity portfolio worth £1m. She has invested £250,000 via the AIM Portfolio IHT Plan. After two years, she is able to pass on an extra £100,000 to her descendants.

Assume that the nil rate band is taken up by the value of other assets, such as the family home, and growth in the portfolio only matches costs.

Protecting your client's assets from IHT

Your client's portfolio

Each client portfolio is typically invested in 20-40 companies, depending on the size of the investment. This diversifies risk and lets us retain deep knowledge of each investee company. All investments are managed by an experienced investment management team.

Our AIM company selection criteria

Before investing in an AIM-listed company as part of the plan, we ensure the companies meet our selection criteria. They:
  • must be at least five years old
  • have been listed on the AIM for at least a year
  • have a proven track record, strong cash flow and liquidity in the shares.

A time-efficient alternative

Setting up a trust can be expensive and time-consuming. Your client may also have to wait as long as seven years for their estate to fall outside the remit of IHT. The AIM Portfolio IHT Plan is a tax-efficient, flexible and cost-effective alternative to setting up a trust.

Entry Requirements

The AIM Portfolio IHT Plan should be regarded as a high-risk, long-term investment. The minimum investment is £100,000. Further contributions of at least £25,000 (£20,000 for an ISA) can be made after the original investment. However, if your client dies within two years of buying the shares, the tax relief won't apply.

Withdrawals

 

Your client may make full or partial withdrawals at any time, but the IHT exemption applies only if the relevant shares are held at the date of death. On death your client’s portfolio can be transferred to a spouse without losing the IHT exemption, or can be sold or transferred to another beneficiary.

adviser
"The people we deal with are very professional, fantastic in front of clients and proactive"

Adviser, South East