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Introducing the Octopus AIM Inheritance Tax Service

The Octopus AIM Inheritance Tax Service invests in a diversified portfolio of smaller companies listed on the Alternative Investment Market (AIM) and targets growth. Most importantly, we only select companies which qualify for Business Property Relief (BPR). As long as shares have been held for at least two years and are still held when the investor dies, they can be left to their beneficiaries free from inheritance tax.

You should keep in mind that tax rules may change in the future, and the value of tax reliefs depends on individual circumstances. You should also know that tax reliefs depend on portfolio companies maintaining their qualifying status. The value of an investment may go down as well as up and investors may not get back what they originally put in.

Make sure you look at the ‘What are the risks?’ section below. For more information on the risks, fees and charges, please read the product brochure at the bottom of this page.

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Reasons to consider the Octopus AIM Inheritance Tax Service

Potential for growth and dividends
AIM is home to a wide variety of companies that offer the potential for growth and dividends. The market has had some tremendous success stories over the years.

A simple process
This is an investment in shares that we select for investors. There are no complicated legal structures (as with a trust) and no medical underwriting (as with an insurance policy).

More of your wealth can be passed on to your family
The service invests in companies that are expected to qualify for relief from inheritance tax. It can be an effective way to reduce or potentially even eliminate an inheritance tax bill that a family may otherwise have to pay on the deceased’s estate.

Traditional estate planning solutions can take seven years before they become exempt from inheritance tax. However, an investment in this service can become 100% inheritance tax exempt after just two years.

Investors can ask us to sell shares at any time. We can usually sell shares within a week, however, in some instances it could take significantly longer.

A highly experienced Smaller Companies team
The Smaller Companies team creates portfolios for investors that feature established AIM-listed companies that are typically profitable and paying regular dividends. The founding members of the team have been working together for over ten years, and today the team manages approximately £1 billion on behalf of over 15,000 individuals, invested across several different types of AIM-focused products.

What are the risks?

Investors may lose money
The growth in value of this investment depends on the performance of the companies in the portfolio. We do not offer any guarantees about the growth investors will achieve, and it’s important to understand that the value of investments can go down as well as up, and investors may not get back the full amount invested.

On a day-to-day basis, the value of AIM-listed companies can fall or rise more sharply than shares in larger companies listed on the main market of the London Stock Exchange.

The investment may be difficult to sell
The shares of AIM companies tend to be harder to sell than the shares of large companies, such as BP or Vodafone. This means that if an investor asks us to sell shares, we may not be able to sell them immediately.

Tax rules can change
Rates of tax, tax benefits and tax allowances are based on current legislation, interpretation based on case law and HMRC practice. We can’t guarantee that the tax rules won’t change in the future. Also, the value of tax reliefs depend on an investor’s own personal circumstances.

BPR is assessed on a case-by-case basis
We cannot guarantee that the investments we make will qualify for BPR in every case in the future. HMRC will only conduct a BPR assessment after the death of an investor, to confirm whether the companies invested in qualify for BPR at that time.

Related Documents

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Octopus AIM Inheritance Tax Service brochure

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Octopus AIM Inheritance Tax Service application form

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Octopus Inheritance Tax products terms and conditions

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Latest Octopus AIM Inheritance Tax Service factsheet

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Watch these short videos to see for yourself the good things we’re doing with investors’ money.

How to invest

The minimum investment amount is £25,000. Your client can invest a one-off amount via bank transfer, cheque or banker’s draft.

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Alternatively, you can download the application form above.

Please read

Nothing on this page constitutes investment, tax or legal advice. This product is not suitable for everyone, so we recommend investors speak to a financial adviser, and read the product brochure, which is available on this page, before deciding whether to invest.