OTS review: AIM IHT relief questioned

Saturday, Jul 06 2019 by
2

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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2 Posts on this Thread show/hide all

Randval 10th Jul 1 of 2
1

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.


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timarr 10th Jul 2 of 2

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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