AIM Inheritance Tax Portfolios via an Intermediary


The Dowgate Wealth AIM Inheritance Tax service taps into AIM listed UK companies with the aim of generating capital growth with index-beating returns. It is a segregated portfolio which will hold 20-45 listed companies. We will aim to deploy capital within 14 days of receiving instructions and cleared funds to start the two-year eligibility period as quickly as possible. Any dividends paid will be reinvested. Your client will have access to their funds subject to liquidity, but please remember that any withdrawal prior to death will not apply for IHT exemption. The portfolio is subject to Capital Gains Tax (CGT) and income tax unless held in an ISA. Tax rules and regulations, and personal circumstances are subject to change.

We will send you and your client end of year consolidated tax statements showing total income received during the year and disposals reports. Each quarter, we will write to you detailing your portfolio’s current value and quarter on quarter performance. Your client pack will also include an itemised statement for the period emailed or posted to you. We have a comprehensive online portal where you can view your respective account and contract notes in real-time.

For more information, download our AIM Inheritance Tax Portfolios brochure by clicking here or email for anything else.

An example of the possible savings for your client

If an individual has an investment portfolio of £1,000,000 from which £250,000 is invested in the Dowgate Wealth Inheritance Tax Portfolio service – assuming the nil rate Inheritance Tax bands are utilised against other assets such as the family home. The chart to the left does not reflect any growth in the value of the portfolio.

Our Portfolio Options

At Dowgate we feel it’s important to offer two Inheritance Tax portfolios to advisers depending on how they would like to approach Inheritance tax planning with their clients:

Dowgate Wealth AIM Inheritance Tax Portfolio: Growth

This is designed for clients who prefer a higher level of liquidity in their portfolio. This portfolio does not participate in Initial Public Offerings (IPOs) or Placings (subsequent issue of primary or secondary capital). This means that clients who would like to utilise their ISA for investing in an AIM Inheritance Tax Portfolio can do so.

This portfolio is available both directly with Dowgate Wealth and on the following Platforms: Transact and 7IM. If you require another platform, please enquire and we will endeavour to add this portfolio to your chosen platform.

Dowgate Wealth AIM Inheritance Tax Portfolio: Dynamic Growth

This is designed for clients who are comfortable with a lower level of liquidity as the strategy will hold companies with market capitalisations down to £50m. This portfolio can participate in Initial Public Offerings (IPOs) or Placings (subsequent issue of primary or secondary capital) depending on the attractiveness of the investment case. Please note clients’ ISAs cannot be used for this portfolio due to their ineligibility to participate in IPOs and Placings.

This portfolio is only available directly with Dowgate Wealth.

Important Note - Risk Warning

This service should be regarded as a high-risk, long-term investment as it only invests in smaller companies where share prices are more volatile and less liquid than constituents of the FTSE100 Index. These newly formed, smaller firms do not qualify to list on the leading market exchange. These companies have a greater chance of growth in the early stages. However, they are also more likely to fail than a FTSE 100 company.

You should be comfortable with the possibility of losing your investment in the pursuit of potentially generating substantial growth. You should expect to experience significant fluctuations in price and understand that given the illiquid nature of these stocks, you will need to be able to hold onto them through down periods. There will likely be a substantial difference in the buy and sell price; if you had to sell them immediately, you might get back much less than you paid for them.

The value of shares may go down and up, and investors may not get back the amount they invested. Past performance is not a reliable indicator for future results.