Protecting your assets
Our Inheritance Tax Portfolio service helps you pass on more of your wealth by investing in Business Relief qualifying companies quoted on the Alternative Investment Market (AIM).
Business Relief qualifying assets that are held for a minimum of two years are exempt from Inheritance Tax (if still held upon death).
Inheritance Tax (IHT) is currently levied at 40% of the value of your estate above the nil rate threshold – £325,000 for an individual and £650,000 for a married couple (or civil partnership)*. One way to minimise your potential tax liability is to own an investment portfolio of shares in IHT exempt smaller companies for two years or more upon death.
Investing on AIM (the London Stock Exchange Alternative Investment Market) carries greater levels of risk than investing on the FTSE100. We therefore follow a clearly defined investment process; identifying high quality growth companies on valuations that we deem to be attractive.
We engage with those AIM listed companies and HMRC to determine their exact IHT status. Although we select investments with a view to holding them for a minimum of two years, the portfolio composition does not have to remain static. Consequently, if a holding in a qualifying company is sold after six months, those six months count towards the two year IHT tax exempt qualifying period provided funds are reinvested into another qualifying company.
To minimise the burden associated with monitoring and administering the investments, our Inheritance Tax Portfolio Service is offered on a discretionary management basis, thereby providing specialist investment management as well as the range of usual benefits associated with our standard discretionary service.
*Correct as at 30 June 2017