You can only claim relief against the amount of Income Tax you need to pay in the UK. You cannot carry forward unused Income Tax relief to future tax years.
Do AIM shares qualify for BPR?
Most recently, the UK Government’s decision in 2013 to allow AIM-listed shares to be held within Individual Savings Accounts (ISAs) means that investors can now hold BPR-qualifying shares within a tax-efficient ISA wrapper.
Do I pay tax on AIM shares?
You won’t be taxed on dividends from AIM shares held in an ISA, nor will you have to pay Capital Gains Tax (CGT) on any of the profits you make. The standard CGT rate is 10%, while the higher rate is 20%. Dividends received in ISAs are also exempt from tax.
How are aim shares exempt from income tax?
Most AIM stocks are exempt from inheritance tax (IHT) if they’ve been held for more than two years, and depending on individual circumstances it may be possible for AIM shareholders to qualify for the income tax and CGT reliefs when held via an Enterprise Investment Scheme, or through CGT Entrepreneurs Relief.
Are there investable aim shares to manage inheritance tax?
This is a flexible way to mitigate inheritance tax costs and retain control of capital. Assets that qualify for BPR are disregarded for IHT purposes as long as shares have been held for longer than two years. If the investor dies within two years of making an investment, the portfolio will not benefit from BPR.
Why do aim shares qualify for property relief?
Aim shares also qualify for business property relief, as they are not regarded as listed companies. This was introduced to allow family businesses to transfer between generations, rather than having to be sold to pay inheritance tax.
Can you hold aim shares in an ISA?
Should you hold AIM shares in your ISA. August 5 marks five years since Alternative Investment Market (AIM) shares first became eligible for inclusion in Individual Savings Accounts (ISAs).
