Puma AIM ISA IHT

The Puma AIM ISA Inheritance Tax Service is a discretionary portfolio service that seeks to deliver long-term growth and mitigate Inheritance Tax (IHT) by investing in a carefully selected portfolio of Business Relief (BR) qualifying Alternative Investment Market (AIM) shares.

ISAs remain an attractive choice for many investors. However at the point of death, many face hefty inheritance tax liabilities on the part of their estate that exceeds their nil rate band, which could include their ISA subscriptions. By investing in a Puma AIM ISA, investors are able to add IHT relief to the attractive tax benefits that an ISA already provides, including 100% Income Tax and Capital Gains Tax relief.

Key features

  • Minimum investment: £20,000 with no maximum

  • Usual ISA benefits including: 0% income tax on subscriptions up to £20,000, CGT free, tax-free dividends

  • IHT mitigation through Business Relief-qualifying portfolio of AIM stocks

Click to download the Service Overview

Reasons to invest

  • Experts in AIM

    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.

  • Tax benefits

    ISAs are highly tax-efficient savings vehicles for three key reasons: no additional Income Tax is payable on interest or dividend income; no Capital Gains Tax is payable on gains; and investors don’t have to declare ISAs on a tax return. 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.

  • Speed & efficiency

    Unlike many other IHT planning solutions such as gifts or trusts, which can take seven years to become tax efficient, you should benefit from Business Relief after a two-year holding period, provided the shares are held at the point of death.

  • Control & access

    Assets held within the Service remain under investors’ ownership and they can request to withdraw their money if their circumstances change.

  • Simplicity

    The Service is a simple, discretionary portfolio management service just like investing with any other discretionary manager.

  • Long-term growth

    We expect the stocks we pick for your portfolio to deliver good investment returns over time, through capital growth and dividends.

Investment process

We focus on investing in quality companies with strong margins, good returns and a track record of cash generation. We select companies on strict valuation criteria with a focus on capital preservation. We seek to invest in companies that can deliver solid long-term growth. Our approach is research driven and we only select investments after intensive financial and business analysis.

Portfolio construction

  • All investors are broadly aligned to the Puma AIM Inheritance Tax model portfolio
  • Fully invested in AIM shares, with only a small cash position (approximately 2-5%)
  • Targets approximately 25 to 35 holdings
  • Average position size is 2%-6%, with generally no position greater than 10% of the portfolio
  • Low portfolio turnover

Fees

  Direct with Puma Investments Through a platform (other platform fees may apply)
 Initial Fee 0% 0%
Annual Management Fee
An ongoing annual management fee shall be payable (quarterly) to Puma Investments, as follows:
1.25% + VAT, per annum (of portfolio value) 1.25% + VAT, per annum (of portfolio value)
Dealing fee A 1% dealing fee shall be applied to the purchase or sale of all stocks in the portfolio Platform and dealing fees may vary across platforms

Risk factors

An investment in the Puma AIM ISA Inheritance Tax Service may not be suitable for all investors.

An investment in the Service carries risk and you should take your own independent advice. You should only invest in the Service on the basis of the Investment Details and Investor Agreement which details the risks of the investment. Below are the key risks of the Service:

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.

Long-term investment
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.

Past performance
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.

Our digital application form process 

To ensure our application process continues without interruption during this time, we have expanded our use of DocuSign across our entire product range. DocuSign allows all applications to be completed digitally without the need to print, scan and post. If you or your clients would prefer to complete a handwritten application, we are also happy to accept scans, provided we are still sent the hardcopies for record-keeping. Either follow the process below, or to discuss finding a process that works for you, please contact your local BDM, via email here, and they’ll be more than happy to assist.

  • To receive an application form via DocuSign, please request a secure link from your usual business development contact, or call us on 0207 408 4070.
  • Alternatively if you have got signed application forms printed and ready to go, simply scan or clearly photograph them on your smartphone and email them to us at: [email protected]
  • The original print copies should be sent through to us as soon as practicable thereafter for the investment to be allotted.

Key documents


Puma AIM ISA Inheritance Tax Service - Q2 2021 Report
Puma AIM ISA Inheritance Tax Service - Investment Details
Puma AIM ISA Inheritance Tax Service - Application Form
Puma AIM ISA Inheritance Tax Service - Investor Agreement
Puma AIM ISA Inheritance Tax Service - Intermediary Terms