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Sell PEP's and ISA's for AIM or not ?
Paul Davis
Posted: 13 December 2010 13:05:19(UTC)
#11

Joined: 12/05/2010(UTC)
Posts: 2

Hi there, based on the responses already made within this article they have clarified the IHT advantages of holding assets within AIM listed shares that qualify for the full relief after a period of 2 years.
Should you wish to discuss this further please email me separately via my work email paul@clearifa.com.
Kind regards.

Paul
CONFFA
Posted: 13 December 2010 15:44:25(UTC)
#12

Joined: 12/10/2010(UTC)
Posts: 5

AIM is not the only solution - have they considered other BPR avenues (which may be less risky)?

Again, though, a 2 year holding period is required, and this may not be suitable.

What about just givng all their money to me, i will gladly pay the relevant IHT!!
David Rowse
Posted: 13 December 2010 17:16:18(UTC)
#13

Joined: 29/06/2009(UTC)
Posts: 11

They could, of course, just spend it and help the economy (and have a whale of a time in the meanwhile). You can't take it with you and as they say, there are only two certainties in this life - death and taxation.
Otherwise they might share it between CONFFA and me, although I believe that I am much more deserving!?
Cowboy Builder
Posted: 14 December 2010 00:24:23(UTC)
#14

Joined: 20/11/2010(UTC)
Posts: 1

Well, if they are about 94 years old, they have have left it rather late to be worried about IHT, although they can take immediate action to reduce any potential liability of their estates to IHT following death. Firstly they should address the ownership of their home which may be owned in joint names as Mr And Mrs. If they consult a solicitor, it may be possible for them to effect a transfer of ownership into ownership as tenants in common so that on the first death, the half of the property owned by the deceased is held in a discretionary trust rather than added to the estate of the surviving partner. Changes in the law recently have made this scheme less attractive, but it may have some advantages based on their particular circumstances. Converting their other investments into AIM-listed stocks is worthwhile if they survive for two years after investment in some AIM-listed stocks which are much riskier than stocks in the FTSE top 100. AIM stocks do not always qualify for Business Property Relief (BPR) after two years, but two stocks that I can think of may do so. Armour Group (AMR) and Oxus Gold (OXS) are two stocks in AIM which are at all-time lows and may qualify for BPR. As they are not Unilever or Anglo American, the share prices are more volatile because they are under-researched by stockbrokers, but nevertheless may be attractive investments as may be other AIM-listed stocks. Do not expect any good advice here, but do your own research and, sincerely, I hope you make some good decisions.
Jonathan Gain
Posted: 14 December 2010 10:56:35(UTC)
#15

Joined: 18/07/2007(UTC)
Posts: 3

Using Business Property Relief will enable your clients to obtain full relief from IHT after two years rather than seven for gifting etc.
There are schemes available in the market which can provide lower risk opportunities utilising BPR.

For example, you could use a discretionary fund manager who runs AIM portfolios for IHT. These can now have a life assurance contract added if desired which would payout if the AIM portfolio was under water in death.

You may also consider opportunities which are asset backed such as UK forestry and residential property development.

We have put together schemes which can help in all these areas and can provide more information if helpful.
James A Kane
Posted: 14 December 2010 20:05:39(UTC)
#16

Joined: 03/06/2010(UTC)
Posts: 10

I suspect that having reached 94 and not done any IHT planning it may be too late. I advise clients to start planning at or before retirement. There are plenty of IFA's throughout the country who specialise in IHT planning and should be able to provide some help (and some saving). AIM is not the awswer.
Albert
Posted: 17 December 2010 11:30:59(UTC)
#17

Joined: 18/03/2006(UTC)
Posts: 1

No do not go into the AIM just to 'save' IHT. My wife had a very bad experience with Brewin Dolphin on a 150K investment. The initial fee was over 10K and they seem unable to justify their actions when things started to go wrong. She the mother is left with about £48K from £150 invested in 2008. The losses were due to many companies going bust!!
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