AIM and ISAs

TONY THE TIGER · Post by **TONY THE TIGER** » Sun Mar 17, 2013 4:47 pm

Posted this on GG earlier this morning and may be of interest to some.. from The Sunday Times..

THE government is to allow shares in small and start-up companies to be included in an Isa during the next tax year.

Shares listed on the Alternative Investment Market (AIM) will be allowed to be held within a stocks and shares Isa, giving investors a chance to benefit from income tax and capital gains tax (CGT) relief.

AIM shares already qualify for business property relief, which means they are excluded from the investor’s estate for inheritance tax purposes after two years.

About 15% of AIM shares already benefit from CGT and income tax relief as they qualify for an enterprise investment scheme (EIS) or are part of a venture capital trust (VCT).

However, under the proposals, which are likely to take effect in the autumn, all 1,100 firms on AIM will be able to offer the full tax benefits.

Also, unlike EISs and VCTs, which require investors to hold the investments for at least three and five years respectively to get the full tax benefits, there will be no such requirement with Isas.

The London Stock Exchange has long called for inclusion of AIM shares in Isas. It points out that Isa investors can already include investments from 87 recognised markets — such as FishEx, the Alaskan fish exchange, and the Mercado de Futuros del Aceite de Oliva (MFAO), which trades in olive oil futures — but not UK firms that are listed on AIM, including Majestic Wine, Mulberry and Asos.

The tax advantages available for investments in smaller firms are to compensate investors for taking extra risk. As Patrick Connolly at AWD Chase de Vere, the adviser, said: “Investing in AIM shares is only suitable for wealthier individuals who are prepared to accept the high risks involved.”

Helal Miah, investment analyst at the Share Centre, the investment platform, likes AIM shares that have exposure to emerging markets, including Hutchison China MediTech — which has a partnership with Astra Zeneca to develop and market Volitinib, a cancer drug, in China. He also tips Mulberry, the luxury handbags firm, and Incadea, which produces business software for car makers such as BMW.

If you want to include AIM shares in an Isa now, some are also listed on other recognised markets meaning they already qualify. Mike Savage at Killik, the broker, likes Beacon Hill Resources, the miner, which is also listed on the Australian Securities Exchange.

It is possible to invest in AIM shares via a fund. Darius McDermott at Chelsea Financial Services likes Marlborough UK Micro Cap, which is up 16% over a year, and M&G Recovery, up 3.5%.

One VCT with AIM shares is the Hargreave Hale fund. And an EIS investing in AIM is Old Burlington Investments Aim Growth.

MWW · Post by **MWW** » Wed Jul 17, 2013 12:58 pm

August the 5th is the date, not long to go, boom time coming for some AIM stocks which are debt free, resource proven, i.e. BLVN

TONY THE TIGER · Post by **TONY THE TIGER** » Wed Jul 17, 2013 2:12 pm

Yep
seen that mate, not sure what ones can go into an ISA...

MWW · Post by **MWW** » Thu Jul 18, 2013 12:57 pm

I think BLVN is the only one ;)

TONY THE TIGER · Post by **TONY THE TIGER** » Mon Jul 29, 2013 12:12 pm

All
Just spoken to my broker and she said all AIM shares can go into an ISA on August 5th..
ie Next Monday..

Could be worth a check with your own brokers to double double check..
Tony

inforapound · Post by **inforapound** » Mon Mar 01, 2021 9:45 pm

any good ISA's worth investing?

warloros · Post by **warloros** » Thu Apr 01, 2021 10:18 am

warloros · Post by **warloros** » Mon Jul 12, 2021 1:10 am

warloros · Post by **warloros** » Sun Aug 08, 2021 8:59 pm

warloros · Post by **warloros** » Wed Jan 26, 2022 4:19 pm

AIM and ISAs

AIM and ISAs

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