AIM Inheritance Tax Portfolios via an Intermediary Risks


This document has been prepared by Dowgate Wealth Limited (“DGW”). Dowgate Wealth Ltd, registered in England number 12221221, is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Registered address: 15 Fetter Lane, London, EC4A 1BW. All data has been sourced by DGW. This document is for information purposes only and is not to be construed as a solicitation or an offer to purchase or sell investments or related financial instruments. This document has no regard for the specific investment objectives, financial situation or needs or any specific investor. Although DGW uses all reasonable skill and care in compiling this report and considers the information to be reliable, no warranty is given as to its accuracy or completeness. The opinions expressed accurately reflect the views of DGW at the date of this document and, whilst the opinions stated are honestly held, they are not guarantees and should not be relied upon. Our opinions reflect our views at such time regarding market conditions and other factors, may depend upon assumptions or projections that may not prove to be correct, and are subject to change.

Investment and Liquidity Risk

Investments in smaller companies will normally involve greater risk or above average price movements (volatility) than investments in larger companies. These companies can suffer from illiquidity issues, which can make it difficult to dispose of an investment. The spread on AIM shares can be greater than on fully quoted investments and therefore if an investor has to sell a holding immediately after purchase the proceeds may be less than the initial amount invested. The price quoted in an AIM share may also be valid in a small amount of shares so selling a larger quantity may achieve a lower prices that the actual market quote. Smaller companies can have smaller management teams and as such the loss of an individual member may have a significant effect on their performance. Equally these companies can tend to be vulnerable to sudden changes in market conditions. The rules for listing shares on the AIM market are less demanding than those on the Official List of the London Stock Exchange; and therefore the risks are higher.

Tax Legislation Warning

Rates of tax, tax benefits and allowances are based on current legislation and HMRC practice. These may change from time to time and are not guaranteed. Current tax rules and the available tax reliefs offered on investments into AIM-quoted stocks may change at any time, and there is a considerable risk that if the legislation changed in respect of these tax reliefs, then those portfolio companies that no longer qualified for such reliefs would be subject to heavy selling pressure, potentially leading to significant investment losses. This investment may not be suitable for all investors. You are recommended to seek specialist independent tax and financial advice before deciding to subscribe to this AIM Service. This AIM Service has been designed with UK-resident taxpayers in mind. If you are not resident or ordinarily resident in the UK for tax purposes, it may not be appropriate or advantageous for you to subscribe to this AIM Service.

Qualifying Investments Warning

Qualifying Investments in which we invest may cease to qualify for inheritance tax exemption. In such a case, the relief available on that particular investment will be lost. In some instances, investments in particular companies will be sold if we believe that the investment rationale outweighs the tax.

Past Performance Warning

Past performance is no guide to future performance and there is no guarantee that the AIM Portfolio’s objective will be achieved. We can make no guarantee of investment performance or the level of capital gains or income that will be generated by the AIM Portfolio. The value of Qualifying Investments and the income derived from them may go down as well as up and you may not get back the full amount invested.