Incentives to invest in AIM shares such as Inheritance Tax exemptions should be left alone by The Office of Tax Simplification, says UHY Hacker Young, the national accountancy firm.
The Office of Tax Simplification review of Inheritance Tax, published on July 5, questions whether AIM listed shares should be entitled to Inheritance Tax reliefs.
However, UHY Hacker Young says that the Government should be providing more tax incentives for investing in AIM and other smaller companies, not less.
Laurence Sacker, Managing Partner at UHY Hacker Young, comments: “The UK needs to see more money invested in growth companies, not less. Removing IHT incentives would just undermine that important objective.”
“The London Stock Exchange has worked really hard to build up the AIM market as an engine for UK growth. I don’t see why anyone would want to undermine that.”
“With all the risks caused by Brexit we shouldn’t be looking at tax proposals that damage the UK’s enterprise economy.”
The IHT incentive for AIM shares requires the investment to be held for two years – encouraging ‘patient capital’.