Take AIM

By THIS IS MONEY
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I HAVE heard there are inheritance tax benefits from investing in Ofex and the Alternative Investment Market. Can you explain? PT, Birmingham.

Maurice Fitzpatrick at accountants Numerica says: If you hold shares in a qualifying trading company whose shares are dealt on AIM or Ofex the shares are free of IHT, provided that at the time of your death you have held them for two years or more.

This is because such shares qualify for business property relief (BPR), which makes them free of IHT. Most AIM and Ofex companies are likely to qualify for BPR, with the exception of property investment companies and investment trusts, and there is no limit to the value of shares which can qualify for BPR in the hands of an individual.

Remember that investing in AIM and OFEX shares is more risky than investing in shares quoted on the mainstream stock exchange. If you are considering investing it is almost certainly better to invest in a range of shares rather then just one or two and get professional advice before going ahead.

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