We second-guessed wrongly on AIM shares. The Alternative Investment Market is the layer below the main stock exchange on which smaller companies shares can be bought and sold. They qualify for Business Property Relief which meant that, once you’ve owned them for two years, they are exempt from Inheritance Tax. I thought that they were less likely to be ‘attacked’ by the taxman than the many small companies set up and marketed specifically go get this type of tax relief. They became our go-to recommendation for those who could afford to take some extra risks to save tax for the next gen. Alas, from next year, the amount of tax they’ll save is halved. Not a total disaster but a nudge in the direction, for advisers helping with IHT planning, of old-school making gifts and life assurance. Full circle.
“Reeves backs down on plans to cut ISA limit”
So it looks as though Cash ISAs are safe for the moment (FTM – is that a thing?) Rachel has apparently ‘bowed to pressure’ from the banks and building societies and decided not to reduce the allowance to £4,000 for cash and to keep the £20,000 parity with Stocks and Shares ISAs. Bowed also to common sense, I’d say.
