An AIM listing alone does not guarantee that shares will qualify for BPR. … The shares must have been held by the transferor for a minimum continuous period of two years prior to the claim for relief being made.
Shares controlling more than 50% of the voting rights in a listed company. Land, buildings, or machinery owned by the deceased and used in a business they were a partner in or controlled. Land, buildings, or machinery used in the business and held in a trust that it has the right to benefit from.
Do all AIM shares qualify for inheritance tax relief? Not all AIM shares qualify for inheritance tax relief, though most will. Generally, property companies, finance companies or professional companies will not qualify for IHT relief.
Most AIM stocks are exempt from inheritance tax (IHT) if they’ve been held for more than two years, and depending on individual circumstances it may be possible for AIM shareholders to qualify for the income tax and CGT reliefs when held via an Enterprise Investment Scheme, or through CGT Entrepreneurs Relief.
Tax incentives for companies investing in AIM companies
Although shares and securities traded on AIM are colloquially referred to as ‘listed on AIM’, they are in fact not listed, but rather admitted to trading on AIM.
How to reduce your capital gains tax bill
- Use your allowance. The £12,300 is a “use it or lose it” allowance, meaning you can’t carry it forward to future years. …
- Offset any losses against gains. …
- Consider an all-in-one fund. …
- Manage your taxable income levels. …
- Don’t pay twice. …
- Use your annual ISA allowance.
Does commercial property qualify for BPR?
It is a general rule of thumb that BPR is only given to trading businesses. However, if your business owns properties which are residentially or commercially let out, it may not attract BPR.
Not all AIM stocks automatically qualify for inheritance tax exemption. Companies that deal in securities, stocks and shares, land or commercial buildings or which are dedicated to making or holding investments are barred from the relief.
Some AIM shares qualify for business relief, meaning they become exempt from inheritance tax once they’ve been held for two years. … The aim was to ensure that on the death of an owner, a family-business could continue trading without any part of it having to be sold to pay Inheritance Tax (IHT).
Which AIM stocks qualify for IHT?
Shares traded on the Apex and Access segments of the Aquis Stock Exchange also qualify for IHT relief. IHT-related investments and portfolios represent an important component of the cash invested in AIM companies.
On the whole, AIM shares are treated just the same as those on the Main Market, in that income generated through dividends is taxable, and gains are subject to Capital Gains Tax (CGT).
AIM shares can be more volatile than traditional investments and are often viewed as riskier than more established companies on the Main Market. That could be because of their size, nature of their business, difficulty trading shares, short track record, need for cash to fund growth, or lack of profits.