I can't find any information about AIM only Investment Trusts that would be suitable for an ISA and be compliant with the IHT rules. Does anyone know of any?
If they no longer exist, is it worth the effort to build an AIM portfolio in an ISA to take advantage of the potential IHT benefits?
Is there anyone on this forum who has and AIM only ISA for IHT purposes?
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AIM Investment Trust?
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- The full Lemon
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Re: AIM Investment Trust?
yieldhog wrote:I can't find any information about AIM only Investment Trusts that would be suitable for an ISA and be compliant with the IHT rules. Does anyone know of any?
If they no longer exist, is it worth the effort to build an AIM portfolio in an ISA to take advantage of the potential IHT benefits?
Is there anyone on this forum who has and AIM only ISA for IHT purposes?
I don't know about ITs but there are certainly brokers and intermediaries who will run such portfolios for you, and presumably make changes when particular AIM shares either become qualifying or cease to be.
I run a portfolio of about 20 AIM shares within my ISA with this motivation. But of course the rules could change at any time, and that could cause the value of theses hares to drop since many people do hold them for this purpose. So I am not convinced I will continue with the strategy.
And of course you have to be willing to stomach the volatility of such shares. Which probably limits the percentage of your net worth that you wish to try and protect in this way.
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Re: AIM Investment Trust?
I don't think it would be possible for such an investment trust to exist and qualify. The IT would have to be quoted on AIM as that is what you would own shares in. But then as its' business is to invest in other company shares (AIM shares), it would not be a trading business and so would not qualify for the IHT exemption.
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Re: AIM Investment Trust?
scrumpyjack wrote:I don't think it would be possible for such an investment trust to exist and qualify. The IT would have to be quoted on AIM as that is what you would own shares in. But then as its' business is to invest in other company shares (AIM shares), it would not be a trading business and so would not qualify for the IHT exemption.
Yes, good point, which is presumably why you have to go to an adviser or intermediary if you want a managed portfolio of qualifying AIM shares. And of course pay for the privilege.
I have pretty much come to the conclusion that I need a more aggressive approach to iHT mitigation rather than merely relying on exemptions like this one. If I was 100% invested in AIM shares I could easily lose more than 40% of its value whilst I wait.
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