AIM Portfolio Service Guide

Hawksmoor’s AIM Portfolio Service enables individuals to invest in growth opportunities amongst UK smaller companies as well as to reduce their potential inheritance tax liability.

 

Investment Opportunities
Our goal is to increase the wealth of clients through investing in outstanding businesses. The Alternative Investment Market (AIM) lists many opportunities to invest in UK smaller companies with significant long-term growth potential.

 

Individual Savings Accounts (ISAs)
The AIM Portfolio Service can be run within an ISA for greater tax efficiency. As a result, holdings will be exempt from further income tax on dividends and any capital gains tax on disposals.

 

Communicating with Clients
Clients of Hawksmoor will enjoy the highest level of service and can expect at least to receive a formal portfolio valuation every six months. In addition, we prepare quarterly reports that provide performance statistics, commentary, and further information for our clients and potential investors.

 

Inheritance Tax Benefits
An inheritance tax (IHT) liability of 40% on a portion of a client’s estate can have a large impact on plans to pass wealth on to future generations. An AIM Portfolio can be a convenient way in which to reduce that tax. Current rules grant exemption from IHT to certain qualifying investments in companies on the London Stock Exchange’s Alternative Investment Market (AIM) once held for 2 years.

 

Risks
An AIM Portfolio is a higher risk, long-term investment and is not suitable for everyone. The following is an overview of the principal risks.

 

Smaller companies are above-average risk investments. The value of investments and any income derived from them may fall as well as rise, and clients may not get back the full amount invested.

 

AIM companies can be relatively illiquid, meaning it can be difficult to dispose of shares at a reasonable price at short notice.

 

Clients should expect that their portfolio will demonstrate volatility greater than the UK market average. Movements in the value of a portfolio may not reflect changes in the overall equity market.

 

Tax rules, including inheritance tax nil rate bands and the eligibility of AIM shares for Business Relief, may change. Hawksmoor cannot guarantee that investments will qualify for tax relief; HMRC decides eligibility on a case-by-case basis.

 

Note: Clients should seek professional financial advice before investing into an AIM Portfolio.