Pilling & Co have been managing AIM portfolio’s for over 12 years with the AIM Portfolio Service launched in 2008. The Pilling & Co AIM IHT Portfolio is a discretionary managed portfolio service, designed to provide investors with inheritance tax relief after two years and risk managed growth.
The portfolio is run by our team of four investment managers with over 20 year’s investment experience.
Pilling & Co are an independent stockbroker based in Manchester who have offered skilled stockbroking and portfolio management services for over a century.
AIM Portfolio – Mitigating Inheritance Tax
Under current legislation bequests made to a deceased’s spouse or to recognised charities escapes inheritance tax (IHT). Otherwise the first £325,000 (frozen until April 2021) of assets bequeathed on death and, the first £175,000 of a deceased’s main residence left to a direct descendant, attracts no IHT, everything over this figure attracts tax at 40%.
An exemption to this are shares in companies that qualify for Business Relief. Companies that qualify for such relief are those that are not listed on a recognised stock exchange. Most importantly the AIM market is not a recognised stock exchanges for this purpose, although companies trading their shares on it are quoted and may be traded. Business Relief assets are:
- Exempt from IHT if the initial investments into AIM securities were purchased at least two years before the time of death and remained in AIM securities up to the date of death.
- Subject to capital gains tax (CGT) at 10% for basic rate taxpayers and 20% for higher rate taxpayers on gains in excess of the annual exemption (£12,300 for 2020/2021). Where these investments are made inside an ISA they are not subject to CGT.
There are some AIM companies that do not qualify for these reliefs. These include companies dealing in property, investments and general financial instruments (i.e. investment companies) and cash shells. There are over 700 companies listed on AIM, as at March 2020. This makes it possible for us to create and manage a portfolio to take advantage of these far reaching tax breaks.
Our AIM IHT Portfolio Service comprises between 35-40 companies, which have been chosen based on their balance sheet strength, market valuation and liquidity, ability to pay dividend, a business model that is likely to survive changing fashions, management equity commitment and quality of shareholder base. We focus on larger and more established companies to help reduce portfolio volatility and exclude the Oil & Gas and Utility sectors.
Opening an AIM IHT Portfolio
If you would like to open an AIM IHT Portfolio or AIM IHT ISA Portfolio then please complete the following forms and return to us. If you should have any questions about opening an account or the AIM IHT Portfolio then please email us at investments@pilling.co.uk
page 8 signed by the client
no need for financial information to be completed if client suitability has already been assessed
ensure Discretionary Management is ticked as Service Level Agreement
adviser charges page needs to be signed by the client