The Alternative Investment Market (AIM) may not be as familiar as the FTSE 100 or the London Stock Exchange, but it is important to know about its potential for making the most of your money.
AIM was launched in 1995 with 10 stocks, and since then it has grown to over 3,000 companies worldwide. It includes companies based in more than 100 countries, representing 37 different sectors, with combined market capitalisation of in excess of £90 billion.
The particularly interesting thing about AIM is that its listed companies fall into the category of ‘unquoted shares’, and as such these a excluded from your estate in the event of calculating inheritance tax. You need to have owned the shares for at least two years to qualify, but thereafter they are IHT-free. Above all, you should seek professional advice to avoid inheritance tax.
There are risks to AIM stocks, which is why they carry a tax incentive. In contrast to large established companies, they are start-ups.
Investing in young, dynamic companies can be very rewarding due to their ability to act on growth opportunities perhaps more speedily than larger companies and corporations, but in turbulent times they can also see the biggest losses, and it is important to note that it is high-risk to invest in AIM stocks.
Here at MPA Financial Management we can recommend AIM portfolios managed by professional investment firms that spread the risk between a number of AIM stocks for IHT planning. They can be held in ISA’s and be outside your estate in two years. Therefore, we highly recommend seeking advice from one of our advisers before investing, due to the risk involved.
For more information please contact MPA on the link below –