![]() ![]() This is an issue that’s raised frequently, and there have been cases where nomads have been found to have failed in their duties. The advisors are paid and profit from the listing in form of fees per companies listed. These nomads are often under fire as many have pointed out a potential conflict of interest. This is unlike the FTSE – where an independent body is responsible for regulating the companies before, during and after the IPO. They advise companies pre- and post-IPO and are responsible for regulatory compliance of the company during the listing process. ![]() ![]() These ‘nominee advisors’, often referred to as nomads, are seen as the regulatory system for the Alternative Investment Market. One notable difference between AIM and other markets is the nomads. The market is seen as a more speculative and riskier investment that attracts those investors with a larger risk appetite. To list on the AIM, companies still go through the pre-IPO market blitz and sharing of financial information however, the process is much more straight forward.Įven though AIM is a smaller market, the IPOs still gain a lot of interest from investors and hedge funds. How do you list on AIM and who are the nomads? How to choose the best investment platform.How to choose the best beginners' trading platform.How to find the best day trading platform.What is sectors trading and how does it work?.What are futures and how do you trade them?.What are options and how do you trade them?. ![]() While AIM-listed shares may benefit from significant inheritance tax breaks, you can only leverage this if you have a clear understanding of the marketplace and select viable asset classes. With these points in mind, the challenge facing investors is to take proactive steps to constantly audit and moderate their investment portfolios. As a result, such securities can incur losses that are far in excess of any proposed inheritance tax savings, which is even more damaging when you consider that this type of share does not pay dividends. The complexities of AIM-traded securities means that these assets can be subject to considerably high levels of risk and volatility, particularly in comparison with traditional markets. The retention of so-called ‘expected assets’ (which are not used for trade purposes) can cause businesses to lose their listing, for example, while dual listings can also cause similar issues for brands and investors alike. There are also circumstances in which companies evolve to qualify for the tax break, only to lose eligibility as their business model adapts and aspects of its operation are changed. To make matters even more complicated, the existing tax authorities do not provide a definitive list of the shares that qualify, presumably because this document would change considerably and in real-time. Not only this, but not all AIM-listed shares currently qualify at all, so it can be an extremely expensive error to invest in volatile or high value stocks that will still be eligible for inheritance taxation. More specifically, it takes an estimated period of two years before such investments become eligible for BPR, meaning that you will not immediately benefit from significant tax breaks. This concept is simple enough, but it is at this point that things begin to get a little more complicated. This theoretically provides a 100% exemption from inheritance tax, while also offering access to the type of lucrative shares typically found on virtual trading platforms such as LCG. In simple terms, investing in AIM-listed equities offers investors access to a tax relief benefit known commonly as business property relief (BPR). What AIM Shares Qualify as Being Tax Exempt? This market is defined by hidden risks and complexities, however, and you will need to understand these in careful detail if you are to operate successfully. This is because the AIM offers access to shares that can be transferred without a fixed tax liability, enabling investors to retain as much of their hard-earned capital is possible. If you are not familiar with London’s Stock Exchange Junior Market, or the Alternative Investment Market (AIM) to you and me, you are missing out on an entity that could ultimately enable you to minimise inheritance tax on your estate. ![]()
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