AIM Portfolio Service Guide

Hawksmoor’s AIM Portfolio Service enables you to invest in growth opportunities amongst UK smaller companies and at the same time reduce your potential inheritance tax (IHT) liability accordingly.

 

Investment Opportunities

 

As an investor in this service, our goal is to increase your wealth by investing in outstanding businesses. The Alternative Investment Market (AIM) provides many opportunities to invest in UK smaller companies with significant long-term growth potential.

 

Individual Savings Accounts (ISAs)

 

ISA investors, seeking growth opportunities, can also use the AIM Portfolio Service 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 and Reporting

 

As a client of Hawksmoor you will enjoy the highest level of service. You can expect to receive a formal valuation of your portfolio at least every six months and in addition, we will prepare a quarterly report to provide performance statistics, market commentary and other relevant information.

 

Inheritance Tax Benefits

 

An IHT liability of 40% on a portion of your estate can have a large impact on your plans to pass wealth on to future generations. An AIM portfolio qualifies for Business Relief and 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 your investments and any income derived from them may fall as well as rise, and you 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.

 

You should expect your portfolio to demonstrate volatility greater than the UK market average. Movements in the value of your portfolio may not reflect changes in the overall equity market.

 

Tax rules, including IHT 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: you should seek professional financial advice before investing in the AIM Portfolio Service.