Investors wishing to buy or sell shares in AIM stocks will deal through a stockbroker in a traditional way. However, whilst dealing in the shares on an execution-only basis may be relatively straightforward, those investors who want advice may have to be more selective. There are some brokers which have specialist knowledge of AIM stocks and which spend a considerable amount of time researching the AIM market. It clearly makes sense for investors to deal through such brokers so as to take advantage of this expertise.
Due to the tax breaks which are currently available, many brokers run specialist AIM portfolios which have been set up with the intention of mitigating Inheritance Tax (IHT). As tax law stands at the moment, qualifying AIM companies (which exclude certain types of company such as investment companies or those involved in real estate) are treated as business assets and thus qualify for Business Property Relief on death. This effectively means that if such shares are held at the date of death and have been owned for over two years then they fall out of the owner’s estate with a potential tax saving of up to 40%.
Information supplied by Redmayne-Bentley