inheritance tax and AIM listed shares

glasgow_oldie

Does anyone know how to identify the AIM listed shares that would be excluded from IHT calculations once they have been owned for 2 years? I can only find out that those companies who 'trade' qualify and are not listed on any other stock market. There seems no way to find out which ones these are.
I currently have a self select SIPP, and am relatively comfortable with doing this myself rather than pay some else

roger_c

http://www.londonstockexchange.com/statistics/companies-and-issuers/aimstatistics.xls

If you click on the above link it takes you to the official AIM website's list of AIM companies, there's a tab for each country and it tells you what the company does. That's maybe a good start, but if someone else knows any better I'd also quite like to know too!

SeniorSam

glasgow_oldie wrote: »

Does anyone know how to identify the AIM listed shares that would be excluded from IHT calculations once they have been owned for 2 years? I can only find out that those companies who 'trade' qualify and are not listed on any other stock market. There seems no way to find out which ones these are.
I currently have a self select SIPP, and am relatively comfortable with doing this myself rather than pay some else

........ Sure hope you like maximum risk, because there is always a very high risk that you would lose more than the saving you may make on inheritance tax. That's why the 2 year rule is there, but not many people are prepared for such high risks.

Good luck

Sam

John_Pierpoint

Buy a farm instead?

relaxtwotribes

Would it not be feasible, at the same time as investing into a diversified portfolio of AIM shares, to take out a hedge in the form of a spread bet or other such instrument to mitigate the risk? I appreciate the hedge will cost, but with 40% IHT saving to gain there must be some opportunity. Any thoughts?

SeniorSam

My thoughts are that you love to gamble. There are many ways to plan against inheritance tax. Unfortunately unless you find someone who specialises in this area, the average financial adviser may fumble around and you may end up worse off than when you started if you took their advice.

Someone who understand Wills, Trusts and who can evaluate your position correctly would be the way to go, but you need to find that person, which is not easy.

Farms are all very well, but you have to be a farmer with a 'working' farm, not just invest into one. Forestry is another area, but it can also carry risk.

Seek out a good adviser, or a good solicitor who specialises in Trusts. It could save your family a fortune.

Good luck

Sam
Just re-read the original question again from glasgow oldie. What on earth are you thinking about with investments in your Sipp. This is a tax free environment and your Sipp will be outside your estate anyway. Think of how to grow your Sipp as much as possible, particularly in these difficult times. I have life funds in my Sipp, which have grown by over 6% in the last year with just 4 funds and only one of those was a negative.

Take advice.

Sam

Mikeyorks

SeniorSam wrote: »

Just re-read the original question again from glasgow oldie.

Did you read the date? As it's heading towards it's 3rd anniversary!

SeniorSam

I'm a silly Billy! Well past my prime! It may help others with answers, or to look at dates!

Sam

relaxtwotribes

SeniorSam wrote: »

My thoughts are that you love to gamble.

No. That is the whole purpose of the hedge - to eliminate (as near as possible) the risk inherent in investing in a portfolio of AIM shares and, therefore, protect the estate from IHT. But the lack of a positive reply so far means I'll just have to do the spadework myself.

Now, if I may, another AIM-related question. If a testator gifts AIM shares, does the 7 year rule still apply, or is it a 2 year rule?

Cheers