Inheritance Tax Portfolio Service

Inheritance Tax Portfolio Service

How can the Service help?

The Inheritance Tax Portfolio Service is a discretionary investment management service that invests in a diversified portfolio of new and growing companies quoted on the Alternative Investment Market (AIM).

It is a straightforward way to reduce your Inheritance Tax (IHT) liability, without the need for complex or costly legal arrangements.

About AIM

Approximately one fifth of AIM companies are international and over 40 different sectors are represented in the market. This diverse and vibrant market is supported by Europe and the US as well as the UK, and AIM investors may be both retail and institutional in size.

How do we manage your portfolio?

Our experienced team will create a portfolio of around 20-25 AIM–quoted shares for you, selecting diverse companies from a range of industry sectors that offer growth potential and that are likely to qualify for Business Property Relief (BPR). All investors in the service will usually have holdings bought and sold in the same proportions according to the amount they have invested. Portfolios may vary over time however as we seek to avoid high levels of trading which can be a drag on performance.

If qualifying AIM shares are sold, the inheritance tax exemption is preserved, so long as the proceeds are reinvested in other qualifying shares, and the cumulative holding period is at least two years. This means that the portfolio can be actively managed without triggering a new two-year holding period each time a new stock is bought.

Your money may not be invested all of the time and any money held as cash at the time of an investor’s death may not qualify for an IHT exemption. The decision on whether assets are exempt from IHT lies with HMRC and will be made only when an estate is assessed for tax purposes.

Contact us to find out more about the Service. You can also take a look at our brochure here.