Business Property Relief

Yes, investing in AIM shares can be riskier than investing in larger, more established companies. AIM companies are generally smaller and less stable, which can lead to higher volatility and potential losses. It's essential to carefully consider these risks and seek professional financial advice.

BPR can significantly reduce the IHT liability on your estate by making qualifying business assets exempt from IHT. This allows more of your estate to be passed on to your beneficiaries rather than being paid in taxes. Incorporating BPR into your estate planning strategy can help achieve tax efficiency and support the growth of trading businesses.

At Continuum Wealth, we offer personalised guidance on integrating BPR into your estate planning strategy. Our advisers can help you identify qualifying investments, understand the associated risks, and develop a plan to optimise your estate for tax efficiency. Contact us today to learn more about how we can help you achieve your financial and estate planning goals.

Investing in BPR-qualifying shares through AIM ISAs and AIM GIAs is not only a financial strategy but also a commitment to supporting the growth of trading businesses. At Continuum Wealth, we're here to guide you through the process, ensuring that your estate planning aligns with your aspirations for your family's future while taking advantage of tax-efficient opportunities.

To qualify for BPR, AIM shares must be held for a minimum of two years. If the shares are sold before this period, they will not qualify for the relief.

BPR provides up to 100% relief from IHT on qualifying business assets, significantly reducing or eliminating the IHT liability on these assets when they are transferred.

AIM General Investment Accounts (GIAs) hold AIM shares and extend the BPR benefits beyond ISAs. By investing in BPR-qualifying AIM shares within a GIA, investors can achieve IHT efficiency while potentially growing their investments.

AIM ISAs are Individual Savings Accounts that invest in AIM-listed shares. These ISAs combine the tax benefits of ISAs (such as income and capital gains tax relief) with the IHT relief provided by BPR. To benefit from BPR, the AIM shares must be held for at least two years.

To qualify for BPR:

• The business must be actively engaged in trading activities, not merely holding investments.
• Ownership of the shares or business assets must have been held for at least two years before the transfer.
• The business must adhere to BPR guidelines, typically excluding those primarily involved in dealing with securities, stocks, or investment land.

Business Property Relief (BPR) is a relief from Inheritance Tax (IHT) that allows the transfer of certain business assets, either during a person's lifetime or upon their death, to be exempt from IHT, provided specific conditions are met.

The Alternative Investment Market (AIM) is a sub-market of the London Stock Exchange designed for smaller, growing companies. AIM offers a more flexible regulatory environment compared to the main market, making it attractive for companies seeking investment and for investors looking for potentially higher returns and IHT relief through BPR.

To ensure your investments qualify for BPR:

• Verify that the business or shares meet the qualifying criteria for BPR.
• Maintain ownership of the assets for at least two years before any transfer.
• Regularly review your investments with a financial adviser to ensure they continue to meet BPR requirements.

BPR applies to:

• Shares in unlisted companies, including those listed on the Alternative Investment Market (AIM).
• Ownership interests in qualifying trading businesses.
• Assets used wholly or mainly for trading purposes in a business.