AIM for the end of the tax year

AIM is often overlooked but those taking out ISAs should consider the markets says Chris Boxall, director and co -founder of Fundamental Asset Management.

AIM for the end of the tax year

AIM, the London Stock Exchange’s international market for smaller growing companies is often overlooked when it comes to last minute ISA investing. But those taking out ISAs at the end of 2016/17 and the beginning of 2017/18 would do well to look to the returns not to mention the inheritance tax benefits available.

While the FTSE 100 has risen 20% over the past 12 months the AIM All Share Index has eclipsed this with a rise of 29% (16 March 2016 to 17 March 2017).

Individuals have been able to hold AIM shares in ISAs since 2013, thus making AIM shares free from income tax, capital gains tax and, after just two years, in the case of qualifying companies for inheritance tax saving 40% IHT charge on the holder’s estate.

AIM has delivered terrific performance over the past 12 months, highlighting its growing maturity and the hugely improved quality of its constituent companies. We would strongly encourage investors seeking exposure to growing, profitable, cash generative, dividend paying smaller quoted companies to take a closer look at AIM this ISA season.

If one adds the Inheritance Tax benefits, especially in an ISA wrapper, many AIM companies make a compelling investment proposition.


Please remember, no news or research item is a recommendation or advice to buy. Every Investor is not responsible for accuracy and may not share the author’s views. If you are unsure of the suitability of any investment for your circumstances please contact an adviser. All investments can fall as well as rise in value so you could get back less than you invest. 

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