AIM IHT ISAs
Make your ISA Inheritance Tax free
Did you know ISAs are tax free in your lifetime, but could be liable to Inheritance Tax on your death? 40% of what you’ve carefully saved over the years could end up in the taxman’s coffers, rather than go to your loved ones.
Until recently there was no way to protect ISAs from IHT without losing the tax benefits of tax-free growth and income.
It all changed in 2013. New rules have made IHT-free ISAs possible. This is because you can now hold AIM stocks in ISAs. Many – but not all – qualify for Business Property Relief (BPR) so could be passed on IHT free to your heirs provided you hold them for two years and still hold them on death.
So how could you make your ISA IHT free?
There is nothing stopping you from selecting AIM stocks yourself. But how do you ensure they qualify – and continue to qualify – for the relief? Do you have time to research and pick the right stocks? AIM is a market of extremes: some shares perform outstandingly, many poorly.
This is why more and more investors are choosing to invest in an AIM Inheritance Tax ISA portfolio. That's a portfolio of AIM stocks selected and managed by a professional manager and held in an ISA.
- Invest your ISA allowance (currently £15,240)
- Transfer unlimited amounts from existing Stocks & Shares or Cash ISAs
- Keep control of your portfolio – take cash out if you need
- Pass it on IHT free after two years – a saving of 40%
- Keep the ISA benefits of tax-free growth and income
Estates liable for inheritance tax faced an average bill of more than £170,000, the latest records show.
Nearly 20,000 estates paid IHT on cash and nearly 17,000 on securities in 2013-14. These figures will include IHT paid on ISAs.
If you've been prudent enough to shelter significant amounts from tax in an ISA, why lose the benefits at the end? Unless you do something about it, the government might take 40p of every £1 you’ve worked hard to save over the years.
Please note: AIM IHT ISAs invest in small companies, which are generally more volatile and illiquid than larger companies and much higher risk. Neither your capital nor the tax savings are guaranteed. Please read carefully all the benefits and risks to decide for yourself if you should invest. Our service is not advice. If you’re unsure, please seek advice.