You are here: Home - Investing - Experienced Investor - News -

Equilibrium plans AIM portfolio to reduce IHT costs

Written by:
Equilibrium Asset Management is to launch its own AIM portfolios to help clients mitigate the cost of inheritance tax.
Equilibrium plans AIM portfolio to reduce IHT costs

The Cheshire-based wealth management firm said inheritance tax planning is becoming a common concern for clients who are looking for ways to reduce potential high costs.

One solution is to invest in AIM shares as, under HM Revenue & Customs rules, certain AIM and unlisted shares qualify for Business Property Relief.
This means once they have been held by an investor for a minimum of two years, they are exempt from inheritance tax.

As a result, the firm said it is looking to utilise this by setting up its own AIM portfolios, and has hired Neal Foundly to spearhead the move. Foundly joined Equilibrium as an investment analyst in August. He was previously a senior fund manager at Royal London Asset Management and spent 24 years at The Co-operative Asset Management. 

Mike Deverell, investment manager at Equilibrium, said AIM can be a risky area, but he hopes the group’s own portfolios will have lower volatility than clients expect from the choppy AIM market, which is down 12 per cent year to date.

The key to successful investment in this market is careful stock selection, he added.

“We will run the portfolios in a low-risk way, and mitigate the risk of investing in AIM as much as possible by focusing on high-yielding stocks with low volatility,” he said.

“We do lots of work with clients on IHT planning. The portfolio will be a good tool for mitigating IHT, and a useful thing to have in our toolbox.”

The firm said it expects to have the new portfolios ready “within months”.

The AIM market came on to many investors’ radars following the last Budget, when the Chancellor announced a rule change allowing AIM shares to be included in ISAs for the first time, giving investors a tax break on the stocks.

Equilibrium’s announcement follows news the firm the will launch its own in-house funds next year, after encountering problems when using model portfolios on platforms.

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Big flu jab price hikes this winter: Where’s cheapest if you can’t get a free vaccine?

Pharmacies, supermarkets and health retailers are starting to offer flu jabs ahead of the winter season, but t...

Is now the time to fix your energy deal?

Fixed energy tariffs all but disappeared during the energy crisis. But now they are back with an increasing nu...

Everything you need to know about the pension triple lock

Retirees are braced to receive another bumper state pension pay rise next year due to the triple lock mechanis...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

The best student bank accounts in 2023: Cash offers, tastecards and 0% overdrafts

A number of banks are luring in new student customers with cold hard cash this year – while others are compe...

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Money Tips of the Week