Unicorn AIM Inheritance Tax Portfolio Service – offering ISA-qualifying Growth and Income options
Unicorn Asset Management (“Unicorn”) have partnered with WM Capital Management Limited (“WM”) to launch the Unicorn AIM Inheritance Tax Portfolio Service (the “Service”).
The Service aims to provide IHT exemption to investors, after an initial two year holding period, by investing in a diversified portfolio of 25 to 40 AIM stocks that qualify for Business Property Relief (“BPR”) and which qualify as ISA investments.
WM act as the Discretionary Fund Manager to the Service and are responsible for the day-to-day management. Unicorn are the investment adviser to the Service, using their years of AIM-investment expertise to select portfolios of AIM stocks.
The fact that the Service is ISA-qualifying helps to solve a growing problem: ISAs form part of an investor’s estate for IHT purposes and over six million of the UK’s 22.7m ISA investors are over 65, meaning an ever-increasing number of investors are looking for estate planning solutions within an ISA framework, which the Service offers.
A key differentiator is that the Service offers investors a Growth and an Income portfolio option. The Growth portfolio will re-invest any dividends received to maximise capital growth whilst the Income portfolio will pay out dividends quarterly. The Income portfolio option may be especially appealing to ISA investors, as it will allow them to receive tax-free dividends and capital growth alongside IHT exemption after only two years.
Unicorn has been one of the leading institutional investors in the AIM market since their inception in 2000. It currently manages over £250m in AIM stocks across its range of UK OEICS and its AIM-focused VCT. The same investment team will be employing this robust, proven investment process in the IHT Service.
Chris Hutchinson, Director, Unicorn Asset Management commented; “Unicorn specialise in AIM and small cap investing. We manage the largest AIM-focused VCT in the market and over a quarter of our AUM is invested in the AIM space. Conducting much of our research in house delivers important synergies with AIM investment, where there are opportunities for under-brokered and under-researched companies. We want to maximise these opportunities within the Unicorn AIM IHT Portfolio Service, to provide investors with effective and efficient mitigation of their IHT liabilities without the time lag or complexities of some of the more traditional solutions.”
Unicorn AIM Inheritance Tax Portfolio Service – Key Benefits:
Unicorn’s AIM Expertise – Unicorn specialise in AIM and UK small cap investments, currently managing over £250m in AIM stocks, including their market-leading AIM focused VCT
ISA Qualifying – the twin benefits of tax-free capital growth and income, with IHT exemption after two years
Income Portfolio Option – dividends paid quarterly
Simplicity – no need for complex legal structures or medical underwriting
Speed – once investors have held shares qualifying for BPR for a minimum of two years their value will be exempt from IHT. More traditional forms of IHT planning (such as gifts or trusts) can take up to seven years to reach full exemption
Control – should an investor’s personal or tax circumstances change (for example to pay for care fees) they have access to their investment at all times, unlike trust planning or gifts
This press release does not constitute investment, legal, tax or other advice nor is it to be relied on in making an investment or other decision. This press release is not a solicitation, offer or recommendation to acquire or dispose of any investment or to engage in any other transaction. Unicorn Asset Management Ltd is authorised and regulated by the Financial Conduct Authority.
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For more information please email LGBR Capital or call 020 3195 7100