You won’t be taxed on dividends from AIM shares held in an ISA, nor will you have to pay Capital Gains Tax (CGT) on any of the profits you make.
Pay no Capital Gains Tax if you give away shares in a personal company or unlisted company – the person you gave them to pays tax when they sell them.
Although AIM is a secondary market where only “listed” companies can trade their shares, AIM shares are not treated as being listed on a recognised stock exchange by HMRC.
In this respect ‘unquoted’ means those which are not listed on a recognised stock exchange such as the London Stock Exchange. Shares listed on the AIM and NEX markets are considered ‘unquoted’ shares in this respect.
In general, AIM companies have lower levels of liquidity, making it harder for investors to sell shares whenever they want. It may also be harder to find information about AIM-listed companies, with levels of market research generally much lower than Main Market equivalents.
Ten ways to reduce your CGT liability
- 1 Use your CGT exemption. …
- 2 Make use of losses. …
- 3 Transfer assets to your spouse or civil partner. …
- 4 Invest in an ISA / bed and ISA. …
- 5 Contribute to a pension. …
- 6 Give shares to charity. …
- 7 Invest in an EIS. …
- 8 Claim gift hold over relief.
CGT is payable at a rate of 20% for higher and additional rate taxpayers and 10% for others, unless business asset disposal relief or investors’ relief is available (which will reduce the rate to 10%).
Although shares and securities traded on AIM are colloquially referred to as ‘listed on AIM’, they are in fact not listed, but rather admitted to trading on AIM.
Is AIM a Recognised Stock Exchange HMRC?
Since AIM is operated by the London Stock Exchange, which is a recognised investment exchange (according to the FCA’s register of recognised investment exchanges) and designated as a recognised stock exchange (according to HMRC guidance on designated recognised stock exchanges), shares that are admitted to trading on …
Is the LSE an RIE?
London Stock Exchange is a Recognised Investment Exchange (RIE) under the UK’s Financial Services and Markets Act (FSMA).
Which AIM stocks qualify for IHT?
Shares traded on the Apex and Access segments of the Aquis Stock Exchange also qualify for IHT relief. IHT-related investments and portfolios represent an important component of the cash invested in AIM companies.
On the whole, AIM shares are treated just the same as those on the Main Market, in that income generated through dividends is taxable, and gains are subject to Capital Gains Tax (CGT).
The Alternative Investment Market (AIM) is not treated as a recognised market under EIS rules. A ‘small company’.
Are AIM investments risky?
AIM is therefore riskier and won’t appeal to cautious investors.
AIM shares tend to be higher risk than those traded on the main market, but the constituents of AIM span a similarly wide range of commercial activities. Generally, there is less trading in AIM stocks meaning they are typically less liquid than their main market peers, i.e. share prices can be volatile.
Can you short AIM stock?
A: Most spread firms will let you take out shorts on the biggest AIM stocks – mainly the top 50. … Finspreads quotes spread bets on UK stocks down to a market cap of £50 million although it will go lower if there is sufficient demand.