A discretionary managed service, designed to help advisers create a legacy free from inheritance tax on behalf of their clients.

Provided that the portfolio is held for a minimum of two years, and at the time of death, our Stellar AiM ISA Inheritance Tax Service ensures a simple way of retaining income tax and capital gains relief – while simultaneously navigating the landscape of inheritance tax.

Capital is invested in a diversified portfolio of approximately 40 companies which are quoted on the Alternative Investment Market (AiM) of the London Stock Exchange. The government offers generous tax breaks to encourage investors to save, and one of the most popular ways is through an Individual Savings Account (‘ISA’) – with the goal of providing investors with a blend of capital preservation and growth.

Key Benefits

ISAs are a great planning tool, and careful investment management means that clients can accumulate substantial tax-free capital within their portfolio.

Unfortunately, ISAs themselves are not exempt from inheritance tax – potentially leaving clients legacies at risks. However, the good news is that there are certain types of investment that can be held in an ISA, which provide full relief from inheritance tax – as well as complete freedom on capital gains and income tax across all capital growth.

Since 2013, AiM listed companies have also qualified to be included in Individual Savings Accounts (ISAs) – providing shelter from Inheritance Tax, as well as income tax and capital gains tax, to effectively encourage longer term investment.

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.

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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 ISA 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 investments, for 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

  • The Stellar AiM ISA IHT Service works by either transferring existing ISAs or investing capital directly.
  • Transferring existing ISA investments is an easy and simple way to improve tax efficiency, as clients can retain income and capital tax relief – while also benefitting from IHT relief.
  • AiM shares, when held in an ISA, benefit from inheritance tax after 2 years – plus the income tax and capital gains tax benefits from the ISA wrapper.
  • Any capital growth is not subjected to capital gains tax – although the value of investments and cash held in ISAs are usually counted as part of a taxable estate. This means that should the investor die with intent to pass on the ISA assets to their family, this investment may be subject to inheritance tax at 40%.
  • Including approximately 40 AiM quoted companies – all of which qualify for Business Relief – the Stellar AiM ISA IHT Service aims to provide a blend of capital preservation and growth. To learn more about AiM and investing in our Stellar AiM Inheritance Tax Service, click here.

 

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, or that sufficient investments in qualifying business activities will be made within the expected timetable, or at all.
  • Qualifying business activities are not certain.
    Qualifying business activities may subsequently cease to qualify for Business Relief. In such cases, Business Relief could be lost or delayed.
  • Tax reliefs are not guaranteed
    The rate of tax, tax benefits and tax allowances are subject to change and are also dependant on personal circumstance. Plus, any changes to what constitutes a qualifying business activity may have a material adverse effect on the value of the business, or Stellar’s potential to achieve the objectives of the service.
  • Conflicts of interest
    The interests of one group of investors may not coincide with another, or an interest of Stellar. In the event of a conflict, Stellar’s investment committee will work to ensure it is resolved fairly and in lie with our conflict policy.
  • Investments are long-term and high risk.
    Interests in the AiM companies are not liquid so although an investor can request a withdrawal from their portfolio, there may be a delay. This means that they may be unable to sell immediately, or will potentially fail to receive the best price. AiM companies are also significantly more volatile than larger companies on LSE.
  • 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 ISA IHT Service, explore the following resources and wrap platforms:

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

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

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Platform Services

The Stellar AiM ISA Inheritance Tax Service is available directly or via the following major wrap platforms – providing an alternate way to invest.

The Stellar AiM ISA IHT Toolkit

We provide a number of tools to guide advisers on how to tailor our Stellar AiM ISA 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 ISA IHT Service

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.

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.

Business Relief (BR), formerly known as Business Property Relief (BPR), was introduced in 1976 to allow a business owner to pass on their business to family members, without incurring inheritance tax. Our inheritance tax services seek to operate within this robust legislation.

BR is becoming increasingly popular to more traditional inheritance tax planning strategies. In many cases, it takes seven years before the assets which your clients pass on are entirely exempt from inheritance tax, and this usually involves a transfer of those assets during their lifetime.

For more information, download our guide to Business Relief.

Take a look at our wide range of services

Stellar AiM IHT Service

A discretionary managed portfolio that mitigates risk through a diversified selection of 40 AiM stocks. This service is available for advised clients, on many of the UK’s largest 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.