Risks of Investing – AiM ISA
The key risks associated with the Stellar AiM ISA Inheritance Tax Service are outlined here – please refer to the Stellar AiM ISA Inheritance Tax Service Terms for a full list.
Your capital is at risk
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. Qualifying investments are not guaranteed Although it is intended that the Stellar AiM ISA Inheritance Tax Service will be operated such that investors will qualify for IHT relief after two years, there is no guarantee that this will be achieved or maintained. The level of IHT relief may be restricted if any investment becomes non-qualifying for Business Relief purposes. For example if the company becomes listed on a stock market so that the shares are no longer unquoted for tax purposes.
Target returns are not guaranteed and you cannot rely on past performance
Please remember that past performance is not a reliable indicator to future performance, and there is no guarantee the target return objectives will be met.
Tax reliefs are not guaranteed
The rates of tax, tax benefits and tax allowances described in this brochure are based on current legislation and HMRC practice. They are not guaranteed, are subject to change and depend on personal circumstances. In addition, any changes to the investments that qualify for Business Relief may have a material adverse effect on the value of your portfolio or the ability of Stellar to achieve the objectives of the Stellar AiM ISA Inheritance Tax Service.
Investments are long-term and high risk
Investments must be held for at least two years, and held at death, to benefit from Business Relief. Portfolios will be invested in companies quoted on the AiM market, which may be significantly more volatile, carry higher risk and be less liquid than many other investments – particularly in comparison to larger companies traded on the main market of the London Stock Exchange.
Your portfolio may be difficult to sell
Although you can request a withdrawal from your portfolio, there may be a delay because the interests in the AiM companies are not liquid, and these shares tend to be harder to sell than those of larger companies. This means you may not be able to sell the shares immediately and you may have to accept a price that is less than the value of the shares.
Conflicts of interest
Instances may arise where the interests of one group of investors will present a conflict with the interests of another group, or an interest of Stellar. In the event of a conflict, Stellar’s investment committee will work to ensure that this is resolved fairly and in accordance with its conflicts policy.
If you have any questions, please consult your adviser or call Stellar on 020 3195 3500. Please note that calls to Stellar may be recorded.