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 Property Relief.

Reasons to invest

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. 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.

Two-year qualifying period

Investments should become zero-rated for inheritance tax after just two years.

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 now manage around £1 billion on behalf of 15,000 investors.

Key risks

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 BPR-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.

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.

About the service

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 BPR.

Portfolio companies

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

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

Key documents

Octopus AIM Inheritance Tax ISA brochureDownload
Octopus AIM Inheritance Tax ISA product overviewDownload
Octopus Inheritance Tax products terms and conditionsDownload
Octopus AIM Inheritance Tax ISA factsheetDownload
Octopus AIM Inheritance Tax ISA application and transfer formDownload
Octopus AIM Inheritance Tax Service/ISA client suitability questionnaireDownload
Octopus AIM Inheritance Tax ISA transfer formDownload
Octopus AIM Inheritance Tax ISA top up formDownload

Key documents

Octopus AIM Inheritance Tax ISA brochureDownload
Octopus Inheritance Tax products terms and conditionsDownload
Octopus AIM Inheritance Tax ISA factsheetDownload
Octopus AIM Inheritance Tax ISA application and transfer formDownload
Octopus AIM Inheritance Tax ISA transfer FormDownload
Octopus AIM Inheritance Tax ISA top up formDownload

How to invest

If you’re ready to start an application for your client, please download the application form.

How to invest

If you’re ready to invest right away, download the application form via the button below.

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Contact our team

Got a question?
Call us at 0800 316 2067