Wed, April 23, 2025
Tue, April 22, 2025

Is investing in AIM still worth it after IHT clampdown?


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  HMRC expects to rake in £110 million a year from upcoming inheritance tax changes on AIM shares. The tax relief will be cut from April 2026, meaning you could find yourself paying 20% in inheritance tax.

The article from MoneyWeek discusses the potential benefits and risks of investing in AIM (Alternative Investment Market) shares to mitigate inheritance tax (IHT). AIM shares can qualify for Business Property Relief (BPR) if held for at least two years, which can exempt them from IHT, making them an attractive option for reducing tax liabilities on estates. However, the article cautions that AIM investments are inherently riskier than mainstream investments due to their association with smaller, less established companies. It highlights that while the tax benefits can be significant, the volatility and potential for loss in AIM shares mean they are not suitable for all investors. The piece advises considering one's risk tolerance and financial situation before investing in AIM shares for IHT planning, and suggests consulting with a financial advisor to tailor such strategies to individual needs.

Read the Full MoneyWeek Article at:
[ https://moneyweek.com/personal-finance/inheritance-tax/aim-inheritance-tax-worth-it ]

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