A discretionary managed service, designed to help advisers create a legacy for their clients – free from inheritance tax.

The Stellar AiM inheritance Tax Service is available on many of the UK’s largest wrap platforms, with the goal of mitigating risk through a diversified selection of 40 AiM stocks. By recommending this 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 to advised clients both inside and outside an ISA, we also accept both portfolio and ISA 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.

Key Benefits

Our Stellar AiM Inheritance Tax Service aims to encourage the support of small and medium-sized trading businesses – most of which are family owned, where beneficiaries are likely to be significantly impacted, should they be subjected to Inheritance Tax at the point of transfer between generations.

What’s more, as of April 2014, no stamp duty is charged on purchases of AiM share – making for a more efficient investment opportunity.

At the core of our portfolio is capital preservation, and we aim to secure this as part of our Stellar AiM IHT Service by focusing on larger and more established companies.

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.

Investing in our Inheritance Tax Services carries risks and is not suitable for everyone. Tax reliefs are subject to change and dependant upon personal circumstance. There is no guarantee that an investor will receive a full return. Please find further details of the risks here.

View our AiM Index Overview

Introduction to AiM

Watch our video below for a brief explanation of the Alternative Investment Market (AiM).

Click on the following links to access our useful resources and wrap platforms.

Reasons to Choose Stellar AiM IHT Service

Tax Efficiency

Relief from IHT after two years – plus no income or capital gains tax

Diversified

The portfolio typically comprises 40 AiM listed companies

Control

Retain ownership of your investments, to keep full control

Heritage

Long term track record

Transparent Fees

Our fees are competitive and completely transparent

Choice

Available within GIA or ISA accounts and via wrap platforms

Reducing Exposure

No more than 5% exposure to each individual company

Our Investment Strategy

  • We invest in a diversified portfolio of around 40 companies – all of which qualify for Business Relief, and are quoted on the Alternative Investment Market of the London Stock Exchange.
  • The nature of AiM means that the size of the companies quoted can vary quite dramatically, with nearly half the companies in the index valued at less than £250 million, and only 2.2% with a value of over £1 billion.*
  • 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.
  • 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, May 2020

View our recent performance

 

Key Attributes of the Portfolio

Important Information

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. 
Initial Subscription Fee1%
Dealing Fee1%
Management Fee1% (plus VAT) per annum
Administration Fee0.25% (plus VAT) per annum

Next Steps

To gain a full insight into our Stellar AiM IHT Service, explore the following resources and wrap platforms:

For further information, complete the form to register for our Stellar AiM IHT Service email campaign.

Investing in Inheritance Tax Services carries risks and is not suitable for everyone, read more.

Register now
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Platform Services

The Stellar AiM Inheritance Tax 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.

The Stellar AiM IHT Toolkit

We provide a number of tools to guide advisers on how to tailor our Stellar AiM Inheritance Tax Service for their clients. Please click below to view our specialised toolkits, featuring videos, case studies and more.

Independent Inheritance Tax Liability Insurance – Two Year Cover

For advisers recommending Business Relief, AIG offers a term assurance policy – specifically designed to cover any liability for inheritance tax in the first two years of planning.

Find out more

 

Frequently Asked Questions on Stellar AiM IHT Service

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. There are no liquid assets tests and extensive trading history is not required

Thirdly, in 2013, AiM listed companies were allowed to be included in Individual Savings Accounts (ISAs), thereby encouraging longer term investment by providing shelter from Inheritance Tax, as well as Income Tax and Capital Gains Tax.

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 Ascentric, Standard Life 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.

For more information, read our overview of the AIM market.

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 life.

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

Stellar AiM ISA IHT Service

The Stellar AiM IHT Service is also available for investment via an ISA, which enables investors to benefit from both Business Relief qualification and all ISA tax benefits. This service is also available on various wrap platforms.

Stellar Business IHT Service

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.

Stellar Income IHT Service

An asset-backed discretionary portfolio targeting a 4.5% income per annum, without reducing the capital – distributed bi-annually as a dividend.