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FAQ - Investment Answers
Question
for IHT which AIM shares qualify for business property relief and which do not - Posted by Joshua Frederics
Answer
ANSWER 2nd August 2012
Hi Joshua,
Firstly I will say that the rules on AIM stocks relative to IHT (Business Property Relief) are not clear-cut. The Revenue just say "investments in qualifying AIM trading companies can attract 100% relief from IHT provided that the investment is held for at least two years before a chargeable transfer for IHT purposes". There is no list of qualifying AIM stocks published by HMRC.
The company must not be used solely as an investment vehicle and if the company holds assets that are not used in its business, their value may not qualify for the relief.
Another thing to be aware of is that AIM stocks may be listed on another market (dual-listed), possibly in another country. If that other market is a recognised stock exchange then it will no longer be eligible for relief from IHT.
You would be advised to consult with a qualified accountant or stockbroker who specialises in AIM IHT Portfolios.
Of course you should be aware that AIM investments carry a higher degree of risk than investing in more liquid shares and larger companies (fully listed). There is a risk, therefore that this may outweigh any IHT saving.
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