OTS review: AIM IHT relief questioned

6th Jul '19 by timarr

2 comments 517 reads

The long awaited review by the Office of Tax Simplification into IHT has finally arrived and questions whether retaining BPR on AIM is justified:

https://www.gov.uk/government/publications/ots-inheritance-tax-review-simplifying-the-design-of-the-tax

Hard to imagine a BJ led government acting on this, but one assumes that the relief would be removed under a government of any other hue.

timarr

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About the Author

Timarr

Premium Member

I'm a UK based technologist (career) and psychologist (academic) with a long-term interest in financial markets, with a particular emphasis (and skill) in how to not make money out of them. When I'm not working or blogging I'm to be found childminding, walking the dog or hiding in the garden shed with a good book :) more »

2 comments

Randval

10th Jul '19

Hello Timarr,
Thanks for information.
Nearly all of my investments are on AIM for BPR so I need to think about what to do.
I will probably end up doing nothing!
Regards,
Randval.

timarr

10th Jul '19

I will probably end up doing nothing!

And that's probably the best thing to do, as there's no certainty about anything in the short-term. However, we will presumably end up with a left-leaning government at sometime in the future and you'd think this would be an easy decision. Still, it probably wouldn't be a priority so you'd likely have a chance to get out: but I wouldn't count on this for IHT mitigation in the long term.

My bigger concern is that BPR related investments have pushed some AIM stocks to unsustainable highs. We've seen a lot of these stocks come off their highs on relatively minor setbacks, because they're priced for perfection. There's not a lot of point saving 40% in IHT if your investments are losing more than that ... but if I were looking for BPR relief I think I'd be looking at some of the unquoted investment funds, where the relief is much less likely to be removed.

timarr

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OTS review: AIM IHT relief questioned

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About the Author

Timarr

2 comments