IHT portfolio universe research

16th Oct '17 by hawkipa

4 comments 4405 reads

Hi,

I am in the process of researching a universe of names that qualify for Business Property Relief (BPR) on AIM and therefore will be inheritance tax (IHT) free after the two year holding period, for my father.

My experience so far, is that IR departments are very cautious about confirming their status and will only ever confirm if they currently qualify. I can appreciate why that is as circumstances do change. However, I am not sure why it is such an opaque area in which to gain confirmation. I guess it suits HMRC for it to be so.

So, I thought it may be useful to create a forum to share names, if others are interested in this topic?

So far, I have confirmed with IR departments that both APH & SOM qualify.
Mrken, also highlighted Youngs & Wynnstay as two names that were recently mentioned in The Daily Telegraph as qualifying.

If I can discover about 10-20 names, I will endeavour to create a portfolio to track their performance.

So if anyone out there can share any names or pointers then I would be more than happy to curate a universe.

Many thanks in advance.
Paul

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nickwild

16th Oct '17

IQE qualifies I believe.

peterg

However, I am not sure why it is such an opaque area in which to gain confirmation.

The issue is that qualification depends on how the company operates and what it does. The HMRC and the company's PR depts cannot predict what a company may do in the future so any statement can only apply to the time it's made.

Peter

DWit199

You get 100% Business relief on shares in unlisted companies. Provided the share is not also listed on another recognised exchange, you will get the relief except when the company mainly deals with securities, stocks or shares, land or buildings, or in making or holding investments. So, most non-financial AIM shares not listed elsewhere will qualify.
That information is relatively easy to obtain and is all in the public domain. A simple checklist before purchasing a share should do the trick. Since you are investing in AIM shares where the risks are high I would expect you to have a portfolio of at least 25 shares, if not more. If one turns out not to qualify and you have a small tax bill, it is not a complete disaster.

alterego

take a look at this thread where there are many suggestions for the companies you are interested in
https://www.stockopedia.com/content/inheritance-tax-exemptions-176145/

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Hawkipa

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