Bubble To AIM At

Published / Last Updated on 02/03/2018

AIM BubbleIs there a Bubble in the AIM?

We have seen a few stories circulating as to a potential stock market pricing bubble in the AIM market.

What is AIM?

The Alternative Investment Market is a sub-market of the London Stock Exchange. It allows smaller, less-viable companies to float shares and raise capital which is flexible than the main market.  They are still multi-million pound companies that are looking to grow and clearly not quite big enough to make it onto the more established

Shares in AIM listed companies can be purchased by individuals, companies, investment schemes and pension funds.

Why the Potential AIM Bubble?  Inheritance Tax Planning.

The fact is that many company shares listed on AIM benefit from business property relief (BPR).  BPR means that 100% of your interest in a business e.g. your own company or investment in AIM listed shares can be 100% inheritance tax free on death provided you have held the shares for at least 2 years.

There has been a ‘glut’ of inheritance tax planning investment schemes launched over the last few years that invest in AIM listed shares.  Many are suggesting this is creating a bubble i.e. the demand for such shares means that prices have risen much higher than the underlying value of the companies listed.