Octopus AIM Inheritance Tax ISA
Estate planning within an ISA wrapper. Available for ISA transfers and new investment.
Octopus AIM Inheritance Tax ISA
Estate planning within an ISA wrapper. Available for ISA transfers and new investment
Some people are not aware that ISAs are subject to inheritance tax like most other investments. The Octopus AIM Inheritance Tax ISA was one of the first ISAs to offer inheritance tax exemption as well as ISA tax benefits.
With the Octopus AIM Inheritance Tax ISA, we invest in a portfolio of carefully chosen companies listed on the Alternative Investment Market (AIM). We choose established companies that are typically profitable and pay regular dividends. Investors retain access to their investment, which continues to enjoy all the benefits of the ISA wrapper.
However, the most important factor is that we invest in the shares of companies that are expected to qualify for Business Relief.
Reasons to invest
Wealth stays in ISA wrapper
Investors continue to enjoy all the benefits of the ISA wrapper.
Pass on more wealth
The Octopus AIM Inheritance Tax ISA invests in companies that are expected to qualify for relief from inheritance tax.
Two-year qualifying period
Investments should become exempt from inheritance tax after being held for two years, allowing them to pass free of inheritance tax upon death.
Potential for growth and dividends
The Octopus AIM Inheritance Tax ISA invests in a portfolio of carefully-chosen companies listed on AIM, the world’s most successful market for fast-growing smaller companies.
Access
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 founding members of our Smaller Companies team have worked together for well over a decade, and manage funds on behalf of more than 15,000 investors.
Risks to bear in mind
Capital at risk
The value of an investment, and any income from it, can fall as well as rise and investors may not get back the full amount they put in.
Tax treatment may change
The service is based on current tax legislation which could change in the future. Tax relief depends on the companies we invest in maintaining BR-qualifying status. Tax treatment depends on individual circumstances and may change in the future.
The investment may be volatile and difficult to sell
The shares of AIM-listed companies could fall or rise in value more than shares listed on the main market of the London Stock Exchange. They may also be harder to sell.
BR is assessed on a case-by-case basis
We cannot guarantee that the investments we make will qualify for BR in every case in the future. HMRC will only conduct a BR assessment after the death of an investor, to confirm whether the companies invested in qualify for BR at that time.
Estate planning now and moving forward
Visit our inheritance tax post-Budget webpage
Learn more about our service
Discover more about investing in AIM companies
Hear from our Smaller Companies team.
Our guide to inheritance tax
Take a look at our guide to untangling inheritance tax, which explains common planning strategies in clear, easy-to-follow language.
Where we invest
The Octopus AIM Inheritance Tax ISA invests in a diversified portfolio of smaller companies listed on the Alternative Investment Market (AIM) and targets growth. We select companies that are expected to qualify for BR.
Learn more about our service
Discover more about investing in AIM companies
Hear from our Smaller Companies team.
Our guide to inheritance tax
Take a look at our guide to untangling inheritance tax, which explains common planning strategies in clear, easy-to-follow language.
Where we invest
The Octopus AIM Inheritance Tax ISA invests in a diversified portfolio of smaller companies listed on the Alternative Investment Market (AIM) and targets growth. We select companies that are expected to qualify for BR.
The Octopus Intergenerational Planning team
Learn how we can support you before and after a client dies, and help strengthen your intergenerational strategy.
Portfolio companies
Restore
Restore provides specialist solutions to enable organisations to work faster, reducing cost, work more securely and more sustainably. The Group has five businesses organised across two divisions: Digital and Information Management and Secure Lifecycle Services. The Group has 86 sites across the UK providing national scale with local service. The scale and capability of Restore provides customers with class leading services and cost benefits.
Next 15
Next 15 is a specialist public relations agency and data research consultancy with expertise in the technology sector. Specialist agencies in the Group include Archetype, Outcast, M Booth, Mach49, SMG and Savanta. The company employs over 4,000 people across 32 offices in 15 countries.
Who could benefit?
Tax planning scenarios
Inheritance tax is no longer a problem just for the very wealthy. Our inheritance tax planning scenarios show how different types of clients can benefit from inheritance tax planning.
Clients who want an inheritance tax-efficient ISA
Illustration
Fill in your client’s details and we’ll email you an illustration straight away.
Try our inheritance tax calculator
Check the potential inheritance tax due on an estate, including the potential impact of the residence nil-rate band.
Fees and charges
| Octopus initial charge: | 0% |
| Annual management charge: | 1.5%+VAT per annum |
| Ongoing fee to adviser: | Agreed with your client |
For a detailed overview of all charges please view the product brochure.
Fees and charges
Please consult the product brochure for a full overview of all fees and charges.
Key documents
| Octopus AIM Inheritance Tax ISA brochure | Download |
| Octopus AIM Inheritance Tax ISA product overview | Download |
| Octopus Inheritance Tax products terms and conditions | Download |
| Octopus AIM Inheritance Tax ISA application and transfer form | Download |
| Octopus AIM Inheritance Tax Service/ISA client suitability questionnaire | Download |
| Octopus AIM Inheritance Tax ISA top up form | Download |
| Octopus AIM Inheritance Tax ISA transfer form | Download |
| Octopus AIM Inheritance Tax Service factsheet | Download |
Key documents
| Octopus AIM Inheritance Tax ISA brochure | Download |
| Octopus Inheritance Tax products terms and conditions | Download |
| Octopus AIM Inheritance Tax ISA factsheet | Download |
| Octopus AIM Inheritance Tax ISA application and transfer form | Download |
| Octopus AIM Inheritance Tax ISA transfer Form | Download |
| Octopus AIM Inheritance Tax ISA top up form | Download |
Ways to invest
Ways to invest
Choose how to invest based on the type of investment.
New investment
Complete an online application to start a new investment.
Top up
Top up an existing investment using our online form.
ISA transfer
Download an application form and transfer authorisation form to transfer your ISA.
Power of attorney investment
If there’s a registered Power of Attorney in place, download the application form to make an investment. You’ll also need to complete our Registering a Power of Attorney pack.
How to invest
If you’re ready to invest right away, download the application form via the button below.
The Knowledge Base – deep dive with Octopus on estate planning
A comprehensive technical bank of whitepapers for advisers and paraplanners.
Funds from Octopus
The same team that manages the Octopus AIM Inheritance Tax Service and Octopus AIM Inheritance Tax ISA, also manage three quoted funds.
As with the Octopus AIM Inheritance Tax ISA detailed above, these funds invest into smaller companies listed on the London Stock Exchange’s AIM market. The value of these smaller companies can fall or rise more than of those listed on the main market of the London Stock Exchange and you may not get back the full amount you invest. They may also be harder to sell
FP Octopus UK Micro Cap Growth Fund
Our Micro Cap fund targets long-term growth by investing in a portfolio of 50-80 UK smaller companies quoted on the London Stock Exchange and the Alternative Investment Market (AIM).
FP Octopus UK Multi Cap Income Fund
Our Multi Cap fund invests and provides support to companies across the entire UK equity market. We look at businesses that should be capable of delivering at least one of three key characteristics: better than market earnings growth, better than market dividend growth or better than market dividend yield.
FP Octopus UK Future Generations Fund
Our Future Generations fund targets long-term capital growth by investing in companies aligned with our sustainable investment themes, solving problems for the people and planet.