The Stellar AiM Inheritance Tax (IHT) Service is a discretionary managed service, designed to help advisers create a legacy for their clients – free from inheritance tax.
Accessible on many of the UK’s largest wrap platforms, this service seeks to mitigate risk through a diversified selection of between 25 and 40 AiM stocks. By recommending the Stellar AiM IHT Service, advisers can support investors and their beneficiaries to benefit from 100% inheritance tax relief – provided that the portfolio is held for a minimum of two years, and at the time of death.
Available for investment directly or in an ISA, we also accept transfers. Transferring existing ISA investments is a simple way to improve tax efficiency, as investors retain income and capital gains tax relief – but benefit from inheritance tax relief as well. For more information, click here to explore our Stellar AiM ISA IHT Service.
The Stellar AiM Inheritance Tax Service is a discretionary managed service, which is designed for investors who wish to leave a legacy free from inheritance tax. Capital is invested in a diversified portfolio of between 25 and 40 companies which are quoted on the Alternative Investment Market (AiM) of the London Stock Exchange.
You and your beneficiaries should benefit from 100% inheritance tax relief – provided that the portfolio is held for a minimum of two years, and at the time of death.
As of April 2014, no stamp duty is charged on the purchases of AiM shares.
As with any investment, in-depth research should pay dividends. Careful selection and a sound understanding of the different companies quoted on AiM makes it possible to invest in those which offer greater stability and lower risk attributes.
Our Inheritance Tax Services are high risk and may not be suitable for all investors. Tax reliefs are subject to change and dependant upon personal circumstances. The value of your portfolio, and any income derived
from it, may go down as well as up and you may not get back the full amount you invested.
The key risks associated with the Stellar AiM Inheritance Tax Service are outlined in the brochure and terms of business – please refer to these before making any investment decisions. Please find further details here.View our latest Company Spotlight
Introduction to AiM
Watch our video below for a brief explanation of the Alternative Investment Market (AiM).
The ARC IHT Portfolio Index
The ARC IHT Portfolio Index (“AIP”) is a Sterling denominated index compiled by Asset Risk Consulting research (ARC) to be used by investors and their advisers in assessing the performance of a discretionary portfolio within a specialist mandate designed to mitigate IHT liability through investment in stocks that are expected to qualify for Business Relief.
The AIP Index provide insight into the actual returns being generated by discretionary IHT portfolios, net of fees, based on thousands of Sterling denominated IHT portfolios submitted by participating investment managers.
Stellar Asset Management was a founding member of the AIP Index, believing passionately that returns data should only comprise actual IHT portfolio performance, free from any “model” or “synthetic” data which often lack true representativeness.
For the latest quarterly ARC statistics please click here.
For more information on ARC please visit https://www.assetrisk.com/research/the-arc-indices/
Useful resources and wrap platforms
Reasons to Choose Stellar AiM IHT Service
Relief from IHT after two years
The portfolio typically comprises 25-40 AiM quoted companies.
Retain ownership of investments, for full control.
Long term track record.
Competitive and transparent fees.
Available via selected wrap platforms.
No more than 5% exposure to each individual company.
Our Investment Strategy
- AiM currently comprises over 800 quoted companies, with a combined market capitalisation of nearly £100bn. We exclude a substantial portion of these companies from our portfolio, largely because they possess small market capitalisations and/or demonstrate higher levels of volatility.
- We invest in a diversified portfolio of between 25-40 companies – all of which qualify for Business Relief, and are quoted on the Alternative Investment Market (AiM) of the London Stock Exchange.
- The nature of AiM means that the size of the companies quoted can vary. Nearly half the companies in the index are valued at less than £250 million, and only 2.4% with a value of over £1 billion.*
- The companies that we select are chosen via a ‘bottom up’ approach, based on fundamentals – as opposed to satisfying any predetermined category definitions or weightings.
*Source: London Stock Exchange AiM Statistics, August 2020
Key Attributes of the Portfolio
There are never any guarantees in the world of investment, so it’s essential that advisers make their clients aware of the risks. Our Inheritance Tax Services are not suitable for everyone, so here’s a summary of what an investor needs to know before getting involved – alternatively, click here for more information.
- The value of a portfolio, or any income derived from it, can fluctuate.
There is no guarantee that the full value of an investment will be returned – the rate of tax, tax benefits and tax allowances are subject to change and are also dependant on personal circumstance.
- Portfolios are invested in companies quoted on the AiM market.
These companies are likely to be more volatile than larger companies traded on the main market of the London Stock Exchange.
- The level of IHT relief may be restricted.
Although our intention is to help investors qualify for IHT relief after two years, there is no guarantee that this will be achieved or maintained.
- Potential delays can arise when selling a portfolio.
Interests in AiM companies are not liquid, so selling shares within a short time frame can pose a challenge – particularly if an investor is only willing to sell for the best price.
- Past performance is no indicator of future success.
Fees and Charges
|Initial Subscription Fee
|1% (plus VAT) per annum
|0.225% (plus VAT) per annum
To gain a full insight into our Stellar AiM IHT Service, explore the following Document Downloads – featuring brochures, application forms and more.
For more information, complete the form to receive further insight into our Stellar AiM IHT Service.
Investing in Inheritance Tax Services carries risks and is not suitable for everyone, read more.
for more information
The Stellar AiM IHT Service is available directly or via the following major wrap platforms – providing an alternate way to invest. Suitable for ISA or APS transfers, and supported in an ISA or SIPP.
Frequently Asked Questions on Stellar AiM IHT Service
What are the benefits of investing on AiM?
There are a number of benefits to clients when investing on the Alternative Investment Market (AiM). Firstly, shares on AiM qualify for Business Relief (BR), which offers 100% relief from Inheritance Tax after just two years – as opposed to seven years when placed in gifts and trusts.
Secondly, there are fewer regulatory requirements than listing on other exchanges. There is more red tape associated with other exchanges, which the Alternative Investment Market just simply doesn’t require. There are also no restrictions on market capitalisation, and financial reporting is more flexible – with no liquid asset tests and or a requirement for extensive trading history.
Thirdly, in 2013, AiM listed companies were allowed to be included in Individual Savings Accounts (ISAs). This thereby encouraged longer term investment by providing shelter from Inheritance Tax – as well as income tax and capital gains tax.
Can you invest into AiM on Platforms?
Yes, there is a limited number of AIM Inheritance Tax portfolio providers available on Platform. Both the Stellar AiM IHT Service and the Stellar AiM ISA IHT Service is, for example, available on the abrdn, M&G Wealth and Transact platforms.
Advisers can potentially access the investment returns of investing in AiM, together with considerable IHT benefits – if accessed through a client’s general investment account or through an ISA.
How does Inheritance Tax work?
Inheritance tax (IHT) is essentially a tax levied on any transfer of assets to other people or trusts. It is typically paid in respect of the value of a client’s estate on death, but it can also apply in respect of certain transfers of assets during their lifetime.
Read our guide as we explain what a client needs to pay and when, and some of the most important ways to gain relief from IHT.
Take a look at our wide range of services
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A discretionary managed service which provides numerous succession planning and tax efficiency options for business owners – either following the sale of a company, or to invest excess company capital to maintain tax efficiency.
Stellar Growth IHT Service
This discretionary managed service involves the creation of a privately owned limited company for each investor, to access a portfolio of asset-backed Investment Sectors – targeting 5% growth per annum.