Sanlam UK has today announced the launch of its Inheritance Tax (IHT) Service, enabling clients to mitigate IHT liabilities and generate long-term growth by investing in smaller companies.
By investing in a diversified portfolio of shares listed on the Alternative Investment Market (AIM), the service will provide exemption from IHT through Business Property Relief (BPR). The diversified portfolio will be made up of 25 to 45 shares across a range of industries and with solid earnings growth potential. Investors will be able to hold the shares in an ISA or SIPP, and can add or withdraw money at any time. Each stock will go through an extensive screening process to try to ensure qualification for BPR as well as reassuring investors of the potential for long-term growth.
Part of the London Stock Exchange and designed for smaller companies seeking expansion, the AIM has had over 3,000 firms listed since its inception in 1995 and raised over £60 billion. Whilst investing in smaller companies can offer attractive valuations, diversification and the potential for higher returns, it is often perceived as higher risk. The service bears an initial charge of 1.5% plus an annual management fee of 2% plus VAT is levied on the portfolio.
Commenting on the launch, Charlie Parker, Head of Portfolio Management at Sanlam UK said: “With the launch of this new service, Sanlam UK reinforces its commitment to providing the best wealth and inheritance management strategies and solutions possible to our clients.
A forward-looking approach is vital when it comes to protecting and planning your family’s wealth for future generations. This IHT service offers clients a straightforward, effective and flexible way to accrue and pass on wealth.”
The value of your investment can go down as well as up and you may not get back your initial investment. Investing in companies listed on AIM can involve more risk than those listed on the main market of the London Stock Exchange and their share price movements tend to be more volatile.
Tax rules are subject to change. Based on our understanding of HMRC interpretation as at May 2018.