Octopus AIM Inheritance Tax Service
Helping investors pass on more of their wealth free from inheritance tax while targeting growth
Octopus AIM Inheritance Tax Service
Helping investors pass on more of their wealth free from inheritance tax while targeting growth
Octopus AIM Inheritance Tax Service aims to help investors leave more wealth to their loved ones free from inheritance tax. We invest in a portfolio of companies listed on the Alternative Investment Market (AIM) that we expect to qualify for Business Relief. 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.
Reasons to invest
Pass on more wealth
The Octopus AIM Inheritance Tax 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.
A highly experienced investment 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.
Access
Investors can ask us to sell shares at any time, although withdrawals can’t be guaranteed. We can usually sell shares within a week, though in some instances it could take significantly longer.
Potential for growth and dividends
The Octopus AIM Inheritance Tax Service invests in a portfolio of carefully-chosen companies listed on AIM, the world’s most successful market for fast-growing smaller companies.
Risks to bear in mind
Capital at risk
The value of investments, 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
Hear more about investing in AIM companies
Our inheritance tax solutions have helped thousands of people leave more wealth behind for those they love.
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 Service 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, so the shares should become exempt from inheritance tax after just two years, provided they are still held.
Learn more about our service
Hear more about investing in AIM companies
Our inheritance tax solutions have helped thousands of people leave more wealth behind for those they love.
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 Service 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, so the shares should become exempt from inheritance tax after just two years, provided they are still held.
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?
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.
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: | 2.5% |
| Initial charge to adviser: | Agreed with investor |
| Annual management charge: (paid quarterly) | 1.5% + VAT per annum |
| Ongoing fee to your adviser: (paid quarterly) | Agreed with investor |
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 Service brochure | Download |
| Octopus AIM Inheritance Tax Service product overview | Download |
| Octopus AIM Inheritance Tax Service application form | Download |
| Octopus AIM Inheritance Tax Service/ISA client suitability questionnaire | Download |
| Octopus AIM Inheritance Tax Service top up form | Download |
| Octopus AIM Inheritance Tax Service due diligence document | Download |
| Octopus AIM Inheritance Tax Service Factsheet | Download |
| Octopus Inheritance Tax products terms and conditions | Download |
Ways to invest
Choose how to invest based on the type of investment.
New investment
Complete an online application to start a new investment.
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.
Joint investment
Download an application form to make a joint investment.
Top up
Download a top up form to top up an existing investment.
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 Service 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.