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Psigma AIM IHT Portfolio Service

Estate Planning with Psigma's AIM IHT Portfolio Service
 
Data released in April 2016 indicates that HM Revenue & Customs collected £4.6bn in inheritance tax during the last tax year. What many people do not realise is that by investing in shares that qualify for Business Relief (BR) through the Alternative Investment Market (AIM) can help attract up to 100%* relief from a potential inheritance tax liability. What is Business Relief?

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Psigma’s UK Equity team has developed our discretionary AIM IHT Portfolio Service to help clients benefit from this tax initiative as part of their estate planning. The Psigma Inheritance Tax Portfolio Service is a discretionary managed portfolio that could help protect a client’s estate from Inheritance Tax (IHT), while still allowing them to retain full control of their assets and the income that they earn.

We have developed a concentrated portfolio of around 20 – 30 AIM quoted holdings that we believe will qualify for BR*. We seek investments in good quality companies with resilient business models, strong balance sheets, that we believe will help to protect and grow our clients’ capital over time.

Read more about our AIM IHT Service here or contact us to see how we might be able to help your clients

* Investment in AIM trading companies qualifying for Business Relief can attract 100% relief from inheritance tax, provided that the investment is held for at least two years at the time of death. At this point they will be removed from an estate for IHT purposes, providing a potential 40% IHT saving.

Psigma AIM IHT Portfolio Risk Warnings

The Psigma AIM IHT Portfolio should be regarded as a higher risk, long-term investment. Please be aware that a portfolio of this type may not be suitable for all investors.


• AIM company shares tend to be relatively illiquid and therefore may be difficult to sell or obtain reliable information as to the value and the risks to which the shares are exposed.

• Investments in AIM quoted companies involve a higher degree of risk than investments in companies listed on the main market of the London Stock Exchange.

• Many AIM quoted companies have a small management team and as such the loss of any one individual may have a significant effect on their performance. In a similar vein these companies are likely to have a limited product range and tight cash constraints and tend to be vulnerable to sudden changes in market conditions.

• A company quoted on AIM can elect to revert to private status, in which case the shares may become impossible to trade or value and the protections offered by AIM will cease to apply.

• You should only invest in the Psigma AIM IHT Portfolio if you have financial security independent of any investment made.

• The tax relief available may change at any time. Psigma does not guarantee that all investments made will qualify, or continue to qualify for tax relief. Each company’s qualification for IHT relief is subject to HMRC approval at the time of disposal of the shares.

• Psigma also does not guarantee the timescale for fully investing portfolios or that the portfolios will be fully invested at all times in the future.

• Past performance is not a guide to the future. The value of investments and the income from them can fall as well as rise. Investors may not get back the amount of money they invest.