AIM IHT Portfolio Service

AIM share investing in combination with tax relief

Is this service suitable for me?

You are a UK resident tax payer with assets in excess of the nil rate band
You are willing to put your capital at risk
You have previous knowledge and experience of stock market investment
You understand the high-risk nature of AIM shares
You are looking to invest a minimum of £100,000
Farley & Thompson’s AIM Portfolio service is designed to shelter part of your estate from Inheritance Tax (IHT), so you can leave more of your hard-earned money to your loved ones.

How does IHT impact your savings and investments?

Often described as Britain’s most unpopular tax, IHT is a tax on the estate of a person who has passed away; it applies to the portion of your estate above a certain threshold (the nil rate band). Although in some circumstances it is possible to apply an additional allowance to a primary residence, assets above the IHT nil rate band threshold will otherwise be taxed at 40%. This greatly
reduces your ability to pass on wealth to the next generation.

How does the AIM Portfolio service work?

Applying IHT relief
The AIM Portfolio service is designed to mitigate IHT once your investments have completed a standard two-year holding period. It does this by investing in a portfolio of securities in AIM (the Alternative Investment Market), which are expected to qualify for Business Property Relief. This means the value of the shares is not counted as part of your estate for the purposes of calculating Inheritance Tax.
What is AIM?
AIM is the junior market of the London Stock Exchange, where smaller UK and international companies can float shares with fewer restrictions and can access capital for further growth.

Established in 1995, it is home to around 800 companies, which range widely in market capitalisation, from £1m to over £1bn. This provides us with a substantial universe from which to screen and select our preferred securities.
Investing in a tax-efficient way
Protecting your wealth is a key part of our ongoing commitment to you as a client. Our AIM Portfolio service is one of the ways we do this, enabling you to shelter part of your estate from tax. 

The service provides an alternative to the traditional approach of establishing a trust, and could assist you in your overall tax planning.

Importantly, because the service includes a directly-invested portfolio of AIM shares, you still retain full control of the assets and the income they earn. This means that, unlike a trust, you still have access to your capital if your circumstances change.

The AIM Portfolio service is offered on a standalone, discretionary managed basis.

What are the charges for this service?

We aim to be transparent about our charges so you will always know what the cost of the service will be. AIM IHT Discretionary Portfolio Management is a fee only service comprised of a management fee and a custody charge. Although we do not charge any dealing commission, some transactions attract PTM levy. For the full list of charges relating to this service, please contact us and ask for the AIM IHT Discretionary Portfolio Management Schedule of Charges. The below is a summary of the current fee structure.
Investment Management Fee

1.25% on the value of the portfolio
Custody Charge

0.25% on the value of the portfolio

Key Facts

An effective way to reduce or eliminate the tax burden on your estate
Day-to-day administration and investment decisions made on your behalf
A portfolio of 15-25 AIM shares, diversified by industry sector
Access to your capital if your circumstances change
Simple fee-only structure
For definitions, please click on the word or see our Glossary.

For more information please contact us

Pine Grange, Bath Road,
Bournemouth, BH1 2NU
Call Us On
01202 295000
Our mission is to build trust, provide clear and comprehensible advice, be accessible to our clients and strengthen relationships that last across the generations.
Authorised and regulated by the Financial Conduct Authority

Member of the London Stock Exchange

Farley & Thompson LLP is a Limited Liability Partnership registered in England and Wales under number OC324180

Registered address: Pine Grange Bath Road Bournemouth BH1 2NU
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