This section of our website is intended for professional intermediaries and should not be relied upon by retail investors. Please note that our portfolios are generally not directly available to retail clients without the recommendation of a financial adviser.

Our unique combination of financial and legal services…

The impact of Inheritance Tax is a common concern for families looking to preserve and pass on their wealth to the next generation. Investing in AIM companies has become a valid and popular option for anyone looking to reduce the impact of IHT on their estate because many of the companies traded on AIM are eligible for Business Relief, an established form of tax relief that aims to encourage investments in specific businesses.

The shares of the unquoted companies in the AIM market that qualify for this relief (many do, but not all) will attract 100% relief after two years from making the investment. This means that shares in Business Relief qualifying stocks can be left to beneficiaries free from Inheritance Tax, provided that the securities have been held for two years at the time of death.

Our award-nominated AIM portfolio allows investors to invest in qualifying companies traded on the London Stock Exchange (LSE) Alternative Investment Market (AIM) which are eligible for Business Relief. We offer a discretionary, managed service which chooses investments from this alternative market and allows investors to easily invest in the smaller companies traded on AIM by researching and selecting the stocks for them, while offering additional features like diversification through a wider portfolio than they might construct themselves.

We use a four-step equity selection process to put together a client’s AIM portfolios, and we’re rigorous in our research of the companies we invest in.

  1. A quantitative analysis on the company is undertaken, considering factors like growth, momentum, income and value.
  2. We study what type of business it is. What does it do? Who are the key competitors? How does the management team perform and what do the financial results tell us?
  3. Having fully assessed the business and met with its representatives, we give each company a score which measures its suitability for clients’ investment.
  4. We run it past our own experienced investment committee before making a final decision.

Once we have identified a suitable company, we continue to monitor it closely. If the company moves from AIM to the main market, or the business changes direction and finds itself no longer eligible for Business Relief, this would impact on investors, so keeping a continued eye on the company is vital.

Clients will always have access to their investments in their AIM portfolio and can decide to sell their shares at any time for their money to be returned to them (although IHT relief will be lost on money removed from the AIM portfolio). It is important to note that, by their nature, AIM shares are considered high risk.

At Progeny, our expert asset managers, financial advisers, tax advisers, HR advisers and lawyers have the unique ability to look at your situation from a holistic perspective and put solutions into place to ensure that you can keep as much of your wealth within your family as possible.

If you would like more details about our AIM portfolio, please get in touch.

Investment in smaller companies can involve greater risk than investing in developed, more established markets. Above average price movements can be expected and the values of the investment may change suddenly. The promised payment of income and the return of capital could be in jeopardy in the event that the company has problems meeting its financial obligations. This service is for High-risk investors only.

Tax treatment depends upon individual circumstances and is based on current UK tax legislation, that is subject to change at any time.

IHT relief is not guaranteed and tax benefits depend on circumstances and tax rules, which are subject to change at any time. The Financial Conduct Authority does not regulate trust planning and most forms of IHT planning. Some IHT solutions put capital at risk and so investors may get back less than they invested.

The value of investments and income from them is not guaranteed, can fall, and you may get back less than you invested. Your capital is therefore always at risk. It should be noted that stock market investing is intended for the longer term. There is an extra risk of losing money when shares are bought in some smaller companies, as there can be a big difference between the buying and selling price.

This communication is not investment advice. The value of investments and income from them is not guaranteed, can fall, and you may get back less than you invested. Your capital is therefore always at risk. Past performance is not a guide to future performance. If you invest in currencies other than your own, fluctuations in currency value will mean that the value of your investment will move independently of the underlying asset.