My late Dad's Estate includes 14 AIM shares that he held for over 2 years but I'm not sure if they all qualify for Business Relief. The shares are Alliance Pharma (LON:APH), BEG, BGO, BUR, CRW, KETL, KMK, RBG, REAT, RFX, SAG, SLP, TSTL, YNGA
If anyone knows the qualifying status of the above shares I'd be grateful for any information. Thanks...
https://www.investorschampion....
Investor's Champion has a facility where you can search for AIM companies qualifying for IHT relief. If you scroll about halfway down the link above , I believe for a small fee, you can enter the companies you are looking for to see if they are likely to qualify.
Hello Colin,
I always like to understand HMRC tax legislation so that I can have a 'view' on expert guidance.
In the case of IHT Business Property Relief. The HMRC rules are quite simple.
All AIM listed companies potentially qualify for IHT exemption, but some will be disqualified according to the nature of their business. Unfortunately HMRC does not make that decision for you. It's left to you to decide which AIM companies are disqualified. Most cases are simple to decide. Others need careful interpretation?
The rules are here:
https://www.gov.uk/business-re...
and the potential qualifying companies are:
You can get 100% Business Relief on:
So that's all AIM listed companies ....... except the ones disqualified by:
You can’t claim Business Relief if the company:
I've not checked all the companies in your list, but I imagine a quick check would show most are not disqualified. I hold Science (LON:SAG) and as it's main businesses are engineering and R&D consultancy and services, Audio chip design and Submarine atmosphere management - it's clearly not disqualified? But you apply and HMRC decide.
The one that stands out to me as needing more careful interpretation is Burford Capital (LON:BUR) - the clue is in the name? Still doesn't mean its disqualified. I can see from a quick google search that some AIM IHT portfolios being advertised have included Burford. But you won't know the answer until HMRC make their decision?
cheers
Mark
Hi Mark, thanks for your input. I remember seeing on a Burford bulletin board a couple of years ago that it someone had claimed relief for IHT and it was accepted. Once the probate is completed I'll let you know if it was accepted. It was Dad's biggest holding so I hope it passes.
