The Vartan Ravenscroft Alternative Investment Market (AIM) Inheritance Tax (IHT) Portfolio is designed for individuals whose estate is expected to be valued significantly in excess of the nil rate band Inheritance Tax. The estate would therefore be liable for inheritance tax at a rate of 40% on any excess.
The AIM IHT portfolio service has the objective of obtaining 100% relief from IHT (subject to being held for two years), as well as the potential for long term (5years+) capital appreciation, through investment into qualifying AIM quoted companies.
The AIM IHT portfolio service is an effective and non-contentious tax planning method that avoids the costs associated with forming a trust, or the risks associated with gifts as assets remain under the control of the holder.
To see the global companies which make up the AIM IHT Portfolio, go to the London Stock Exchange website: www.londonstockexchange.com/companies-and-advisors/aim/aim/aim.htm
An investment into an AIM listed companies is only suitable for clients who wish to be exposed to higher risk investments. We view AIM shares as being higher risk in nature and clients should only invest on the basis that they can afford to lose their investment capital and are prepared to invest for the longer term (5 years +). An AIM portfolio may have lower levels of diversification that a broader based approach to asset allocation.
Companies listed on the AIM market are subject to a lower level of regulatory oversight than companies listed on the main market of the London Stock Exchange. Typically this may mean that AIM companies are admitted to trading with a more limited trading history, free float and management teams with less experience.
On an ongoing basis AIM companies are also subject to lighter financial reporting requirements which may make it more difficult to establish ongoing risks and underlying value in the business. AIM companies can be smaller in size and as a result may experience more volatile share price movements and reduced liquidity.
It is important to realise that tax regimes and the associated benefits are subject to change. The rules relating to business property relief are open to interpretation by HM Revenue & Customs and there is no guarantee that companies selected in good faith will not be counted as part of your estate.
We are delighted to be able to offer our AIM Portfolio Service on a Discretionary or Advisory basis. Given the fast moving nature of markets we do recommend that clients take advantage of our Discretionary service.
Vartan Ravenscroft place a strong emphasis on communication and our investment mangers are available at any time to discuss your portfolio. We will provide a formal valuation of your portfolio as at 5th April and 5th October. Each time we buy or sell shares on your account a contract note will be produced and sent to you together with a letter detailing the rationale for the change.
The AIM Portfolio’s primary focus is on long term (5 years +) capital growth and meeting the requirements for Business Property Relief. Dividend income generated by the portfolio will typically be lower than average and we would suggest that an element of income is retained within the portfolio in order to meet fees and reinvestment opportunities. We can of course arrange for excess income to be
Relief from IHT is available when the property that qualified for BPR is replaced with similar qualifying assets. This allows us to sell assets and reinvest without clients losing the benefit of continued BPR. Qualifying business property must be replaced within three years of disposal to retain the relief.
The minimum initial portfolio size per client for an AIM Portfolio is £100,000.
Income and/or capital gains arising from investments within the portfolio are subject to taxation in accordance with investor’s individual tax circumstances and may be subject to change in the future. We arrange to provide a Consolidated Tax Statement in respect of income earned on the portfolio after the end of the tax year.