Wednesday 14 August 2013

AIM shares and ISAs


The new ISA rules allow AIM shares to be held in an ISA. Thus many investors could be looking to transfer their AIM shares into an ISA.

Certain AIM shares benefit from Business Property Relief (BPR). Once shares have been held by an investor for a minimum of two years they are exempt from inheritance tax. Investors holding these shares in their ISA for the two-year qualifying period should benefit from virtually no taxes while they hold the share, and no potential inheritance tax liability.

If there is a transfer of AIM shares into an ISA and the shares have already been held for two years this inheritance tax benefit will be retained within the ISA  without them needing to be held for a further two years.

Please remember the value of tax shelters will depend on individual circumstances, and tax rules can change over time.

For further information please contact Director of Financial Planning Cliff Pocock at Ward Williams Financial Services Limited.

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