Would you invest in Aim shares to avoid IHT?

valueman1

HappyHarry

Any AIM shares in particular? Not all are exempt from IHT.

Mothman

If avoiding IHT was the main purpose then I think I would be waiting until after Oct 30th when we should have a better idea what Ms Reeves has in store for us.

masonic

I would invest in AIM shares, but not to avoid IHT. Therefore I do so through a couple of investment trusts, which gives me greater diversification than I'd achieve through individual holdings. It's been the part of the UK stock market that has given me the greatest returns to date, and has almost made up for the dismal performance of the main market. I'll refrain from voting as there isn't an option that fits this.

Brie

what are aim shares?

masonic

Brie said:

what are aim shares?

https://www.londonstockexchange.com/raise-finance/equity/aim

wmb194

I remember there have been a few threads about the Octopus Aim IHT funds, including one from the OP in 2022. As ever the conclusion was, *shrug* it's risky but might be okay over a long enough timeframe:

https://forums.moneysavingexpert.com/discussion/6332825/octopus-aim-iht-portfolio/

These threads often revolve around the Octupus AIM IHT funds. The composition of which look like they filtered AIM from largest to smallest and worked their way down excluding the ones that definitely don't qualify*, which makes sense. They're larger, usually more established companies with better liquidity.

https://octopusinvestments.com/our-products/business-relief/octopus-aim-inheritance-tax-service/

*"To qualify, a company must be a trading company carrying out the majority of its business in the UK. Businesses trading in land or securities, or receiving a substantial amount of income from letting property or land, are excluded. Also, it must not be listed on another recognised stock exchange. If a company qualified for IHT relief when the shares were bought, but was subsequently disqualified under these criteria, investors must reinvest their holdings into new qualifying shares within six months to retain the BR [Business Relief] exemption."

https://www.tanners.co.uk/site/library/finplan/IHT_planning_and_the_aim.html