Launched in 2014, our award-winning Puma AIM IHT Service is a discretionary portfolio service that seeks to mitigate Inheritance Tax by investing in a carefully selected portfolio of Alternative Investment Market (AIM) listed shares.
Puma Investments is part of the Shore Capital Group, which has a 30+ year history in analysing and advising UK listed small to mid-cap companies. It is a leading market-maker on AIM and an adviser to a large number of AIM quoted companies. The investment team is led by an award-winning Investment Director with 21 years of experience, specialising in small and mid-cap companies.
The Puma AIM offers a discretionary portfolio service that seeks to deliver long term growth whilst mitigating Inheritance Tax. It aims to mitigate Inheritance Tax by the use of Business Relief (BR), which takes effect after just two years from the acquisition of qualifying AIM stocks.
£106.8bn total Market Value of AIM
How investing in AIM mitigates Inheritance Tax
The Puma AIM ISA Inheritance Tax Service seeks to invest in companies that qualify for Business Relief (BR). BR allows investments in certain types of businesses and business assets to qualify for 100% relief from IHT after two years (if the investment is also held at the point of death). This includes many of the companies admitted to trading on AIM.
The purpose of this relief is to encourage the support of small and medium-sized trading businesses. These businesses are often family owned and controlled, and would be significantly impacted should their owners be subject to IHT on their transfer between generations. In addition, as of April 2014, no stamp duty is charged on purchases of AIM shares.
Benefits of Business Relief
Faster Inheritance Tax Exemption
Potentially IHT exempts in just two years
No complex legal structure
The Inheritance Tax benefits of AIM in an ISA
The ISA rules also now allow the surviving spouse or civil partner to benefit from an additional ISA allowance up to the value of the deceased’s ISA saving at the date of death without affecting their own annual ISA allowance.
What the Puma AIM IHT ISA adds
Whilst ISAs are extremely tax efficient during the holder’s lifetime, upon death ISA balances may be subject to a 40% IHT liability. Investing in a BR-qualifying portfolio of AIM stocks allows you to mitigate Inheritance Tax whilst still retaining the benefits of an ISA.
Control and access
The key features of the Puma AIM Inheritance Tax Service apply to both ISA and non-ISA investments. As with a non-ISA investment, assets held in a Puma AIM IHT ISA remain under the ownership of the investor who can request to withdraw money or transfer their ISA at any time (as explained in the Investor Agreement).
How it works in practice
The planning scenario below demonstrates the potential benefits of investing in the Puma AIM ISA Inheritance Tax Service via an ISA.
Justin has 19 years experience of analysing UK and European small and mid-sized companies. He spent 8 years at Polar Capital as a Fund Manager on their European Funds where he managed a significant portion of their award winning European Forager Fund; an absolute return fund focused on Pan-European small and mid-sized companies. He was also responsible for investment across the whole of Europe, but predominantly focused on the UK, Germany and Switzerland, including companies listed on AIM.
An investment in the Puma AIM Inheritance Tax Service may not be suitable for all investors.
Investors can only invest in the Service through a Financial Adviser who has assessed that an investment in the Service is suitable for the investor.
Tax reliefs are not Guaranteed
Tax rules may change, which could affect the reliefs available for IHT purposes. Tax reliefs are subject to an individual’s personal circumstances and independent tax advice should be taken. While the Tax Adviser will also carry out an annual review of the portfolio, we can’t guarantee that all portfolio investments will qualify for BR. If a company should be non-qualifying at the time of being selected for the portfolio or become non-qualifying thereafter, then any applicable BR could be reduced accordingly.
An investment in the Puma AIM Inheritance Tax Service should be considered a long-term investment.
Capital at Risk
The value of investments can go down as well as up, so investors may not receive their full amount invested. An investment in smaller companies is likely to be higher risk than many other investments. Companies quoted on AIM are likely to be more risky and have less rigorous listing requirements than companies quoted on the main list of the London Stock Exchange. Dealing costs may be significant, particularly in respect of a relatively small investment in the Service.
The past performance of the Puma AIM Inheritance Tax Service, Puma Investments, the funds Puma Investments manages or the companies it advises, is not a reliable indicator of future performance. Future performance may be materially different from past results. There is no guarantee that can be given as to the overall performance or level of return that can be achieved from investments made, or that the objectives of the Service will be achieved.
Potentially Illiquid Investment
AIM stocks are largely small and illiquid. They are characterised by significant spreads and low trading volumes. A sale of such shares may be difficult, slow and only achievable at lower than indicated market price.