Shares and securities traded on the Alternative Investment Market (AIM) are treated as neither listed nor quoted, see CG50255.
Although shares and securities traded on AIM are colloquially referred to as ‘listed on AIM’, they are in fact not listed, but rather admitted to trading on AIM.
What is an AIM IHT?
An AIM ISA portfolio or AIM IHT ISA portfolio, as the name suggests, is a portfolio of AIM-listed shares that should benefit from IHT relief, designed to be held in an ISA. The portfolio is built and managed by a professional manager: Whilst you’re invested, any growth and income are tax free.
Key Takeaways. The Alternative Investment Market (AIM) is a specialized unit of the London Stock Exchange (LSE) catering to smaller, more risky companies. The companies listed on AIM tend to be smaller and more highly speculative in nature, in part due to AIM’s relaxed regulations and listing requirements.
Some AIM shares qualify for business relief, meaning they become exempt from inheritance tax once they’ve been held for two years. Business relief (BR), formerly Business Property Relief, was first introduced in the 1976 Finance Act.
On the whole, AIM shares are treated just the same as those on the Main Market, in that income generated through dividends is taxable, and gains are subject to Capital Gains Tax (CGT).
Is AIM a secondary market?
AIM (formerly the Alternative Investment Market) is a sub-market of the London Stock Exchange that was launched on 19 June 1995 as a replacement to the previous Unlisted Securities Market (USM) that had been in operation since 1980.
Steps to trading and investing in AIM shares:
- Decide whether you want to trade or invest in AIM shares.
- Create an account or log in and go to our platform.
- Identify your opportunity.
- Take steps to manage your risk.
- Open and monitor your position.
How risky is the AIM market?
AIM ISAs invest in smaller companies and can be volatile and high risk: you could lose the capital you invest so only experienced investors should consider them.
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.
Which AIM stocks qualify for IHT?
Shares traded on the Apex and Access segments of the Aquis Stock Exchange also qualify for IHT relief. IHT-related investments and portfolios represent an important component of the cash invested in AIM companies.
Are AIM stocks exempt from stamp duty?
Since 28 April 2014, SDRT & Stamp Duty have not been chargeable on transactions in eligible securities on London Stock Exchange’s AIM and High Growth Segment. Purchases made by Private Investors in an eligible security are therefore SDRT / Stamp Duty exempt.
Are AIM companies on the Official List?
AIM companies are not listed, and are hence not subject to the Listing Rules.
How do you get listed on AIM?
There are no prescriptive eligibility criteria for joining AIM, however, a company must:
- Appoint a Nominated Adviser (‘nomad’) and retain their services for the duration of the time the company remains on AIM. …
- Appoint a corporate broker and retain their services throughout the time the company remains on market.
Is AIM regulated market?
AIM operates as a multilateral trading facility but is not a regulated market. AIM is a prescribed market and is also designated as a SME growth market.