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Readers’ forum: Speculator

21 July 2020
Issue: 4753 / Categories: Forum & Feedback
Business property relief for inheritance tax on AIM shares.

A recent article in the finance pages of a national newspaper referred to the speculation on inheritance tax business property relief being withdrawn on alternative investment market (AIM) shares. The article also referred to a method of preserving the relief by transferring such shares into a trust after they have been held for two years. The suggestion was that this cements the relief.

Do Taxation readers consider that this procedure would be effective and what other advantages and disadvantages can they identify?

Query 19 589 – Billy.


Reply by Terry ‘Lacuna’ Jordan BKL

The AIM company itself must apply for inheritance tax exemption.

Some but not all shares in trading companies listed on the alternative investment market (AIM) benefit from 100% business property relief once they have been owned for the minimum period of two years. Relief will not be available if the shares are...

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