Individuals who have built up significant wealth may be concerned that a large proportion of their money will be lost to future generations through Inheritance Tax (40% once over threshold, £312,000 for 2008/09). Many shares quoted on the Alternative Investment Market qualify for Business Property Relief. This means that they offer 100% protection against IHT. Although one must hold qualifying shares for two years, individual shares can be sold and replaced by further qualifying stock. A portfolio of AIM shares can therefore be actively managed and still qualify for full relief from IHT.

We invest AIM-IHT portfolios in a balanced list of established, profitable trading businesses. We apply a screening process, to find companies with asset backing, already paying a regular dividend income. They must also have a stock market value above our threshold for investment. After that, we apply our investment and due diligence processes to stock selection, looking for growth potential, strong management and competitive advantage. Share valuation is critical as the most popular AIM companies can be expensive. Most importantly, investing in under-researched smaller companies is within Taylor Young’s core competency - it is something that we do already.

Discretionary managed portfolios start from £100,000 as part of an ongoing client relationship with us. A typical portfolio will contain around 20 holdings and our normal portfolio reporting and custodian services are made available.

To listen to Philip Todd, Director of Private Clients and Charities, interview on the AIM market and IHT with WealthMic, please click on the link below:

Launch interview

Risk warning

By their nature, AIM stocks tend to have more volatile share prices and may be vulnerable to greater capital losses. AIM shares tend to be relatively illiquid and therefore may be difficult to deal in. It may also be difficult to obtain reliable information as to the value and the risks to which the shares may be exposed. Due to its objective, the portfolio is likely to be fully invested at all times and would be exposed to a stock market fall. Inheritance Tax is a complex issue and the current rules may change in the future. Taylor Young is not a tax advisor and the Client should discuss their financial arrangements with their own tax advisors before any investment is made, as the value of any tax relief available is subject to individual circumstances. Taylor Young cannot guarantee that all investments made will qualify for relief from Inheritance Tax or indeed if they do initially qualify that they will continue to do so.



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