INVESTOR TYPE Online Portfolio
Contact Offices

Due to system upgrades, our website and app will not be available for a 6 hour period between 08:00 and 22:30 GMT on 11 November.

x

AIM STRATEGY

Looking after your assets for future generations, the AIM Strategy is available to clients with £100,000 or more to invest.

Everyone has different reasons to invest, but we all want to make our money go as far as possible.

Whether by investing early or investing regularly, there are also means of investing tax-efficiently. Traditionally this might have meant using a trust, but an alternative option is to invest using our AIM strategy.

The Quilter Cheviot AIM Strategy is a discretionary strategy through which investors can gain access to a diversified portfolio of companies listed on the Alternative Investment Market (AIM). These companies are researched and approved by Quilter Cheviot and supplemented with additional research from Old Mutual Global Investors (OMGI). These businesses are expected to qualify for Business Relief (formerly known as Business Property Relief) and those that do so can mitigate potential inheritance tax liabilities on the part of the investor.

What are the benefits of the AIM Strategy?

  • Potential inheritance tax (IHT) reductions
  • Diversity through cross-sector investments
  • Investments can be traded and valued
  • AIM portfolios can be held within an ISA wrapper
  • An accessible entry point of £100,000.

Our investment process

Quilter Cheviot has teamed up with the research team at Old Mutual Global Investors. The Old Mutual analysts provide advice and research on suitable stocks for inclusion in the AIM strategy, focusing on stocks that will:

  • Maintain sustainable revenues
  • Demonstrate financial strength
  • Demonstrate sufficient liquidity
  • Uphold a positive investment outlook
  • Diversify across industries
  • Meet the requirements to qualify for business relief

This list is then reduced to stocks that qualify for Business Relief, reducing the list of stocks to 50. The final list of stocks is reviewed by Quilter Cheviot research analysts and published as a model portfolio for implementation on behalf of individual investors.

Thereafter your portfolio will be managed by your Quilter Cheviot Investment Manager with strict adherence to a core model that has been reviewed and approved by the Quilter Cheviot Investment Oversight Committee.

Business Relief for Inheritance Tax

Business Relief was introduced in the UK in 1976 with the aim of protecting qualifying business assets from IHT, including 100% relief for shares held in qualifying unquoted trading companies. Unquoted shares for these purposes include shares quoted on AIM. If the company qualifies for relief and the asset is held for at least two years, the value of it is then exempt from IHT on the investor’s death (subject to potential restrictions where the company holds any ‘excepted’ assets, broadly meaning any investment assets not required for the company’s business).

The investee companies selected for inclusion within your Quilter Cheviot Discretionary Managed AIM Strategy will be subject to an annual, ongoing, independent review by tax experts engaged by Quilter Cheviot. This review examines the accounts of each investee company and provides a summary of the extent of the availability of Business Relief that can be expected to be made available to investors in that company. Investors should note that the final decision on whether the stocks qualify for Business Relief will always be made by HMRC at the time of probate and will be based on the circumstances of the investee company at the date of the investor’s death.

Risks to Consider

You should be aware of the higher levels of risk associated with investing in smaller companies and be willing to adjust your attitude to risk in line with this.

The service will only benefit those investors with estates that could be higher than the then current level of IHT-free allowances. The service is not recommended for any purpose other than sheltering assets from inheritance tax.

As business relief rules require investments to be held for at least two years, you must have held investments in a qualifying portfolio for at least two years on death to qualify for IHT relief.

There is a less readily available market for investments in smaller companies. This can make selling investments more difficult.

The advantages from investing in a portfolio of AIM stocks depend on the existing tax rules in force. Any benefits gained from maintaining AIM stocks in a portfolio could be negatively affected by any future changes to those tax rules.

 

Download brochure

If you would like more information relating to the Quilter Cheviot AIM Strategy, please download our brochure or factsheet.

Brochure

Factsheet