A RECORD high of over £4.8 billion was raised by HMRC from Inheritance Tax (IHT) in 2016-2017. Although the Chancellor left IHT unchanged in the Budget, recent rising property values and favourable investment portfolio returns have left many people concerned that a substantial percentage of their estate could be lost for future generations through IHT.

New legislation which started in April 2017 will mean that, over time, an individual’s home may not be chargeable to inheritance tax.

However, understanding the tax-efficient incentives that are available now to help reduce future tax liabilities and payments can help you protect your estate. One area worth exploring is a discretionary Alternative Investment Market (AIM) portfolio service invested in direct securities or shares.

AIM provides a market for smaller, emerging global companies with the goal of expansion.

While AIM-listed companies can be more volatile, high risk high reward investments, AIM can offer considerable tax benefits versus main market alternatives.

Not only can you access a global community of innovative businesses that may have sustainable growth potential, you can also take advantage of tax-efficient incentives that could considerably reduce future inheritance tax liabilities and payments.

The principal incentive is Business Property Relief: after being held for two years or more, certain qualifying AIM shares are eligible for 100 per cent Business Property Relief, so they are effectively no longer taken into account as part of an estate asset for Inheritance Tax calculations.

For advice on how you can succeed in your investment objectives, contact Nigel Skelton at Walker Crips Stockbrokers on 01904 544300 or nigel.skelton@wcgplc.co.uk

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