Aim to mitigate IHT using alternative methods to trusts

tax

As proposals in the last Budget are likely to restrict the ability of trusts to mitigate inheritance tax investors will have to consider alternative options such as portfolios of Aim shares or EIS

The changes to trusts proposed in the March Budget, which impose new inheritance tax (IHT) charges, have caused such an outcry that the Treasury has been forced into making modest concessions. The changes are also causing a rise in popularity of other inheritance tax schemes such as investing in the Alternative Investment Market (Aim). Taxation issues should not be the sole consideration when making investment choices. It is important to base decisions on the merits of the underlying investments and view tax relief as an added bonus rather than the main criterion for choosing an investme...