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AIM ISA / Business Relief ISA Portfolio

An ISA invested in qualifying AIM-listed shares that can benefit from Business Relief for IHT purposes. Combines ISA tax shelter with potential 100% IHT exemption after 2 years.

Key Facts

ISA limit: £20,000 (shared)
IHT relief: Potentially 100% after 2 years
Income tax: None — ISA wrapper
CGT: None — ISA wrapper

How It Works

You invest in AIM-listed shares within a Stocks & Shares ISA. A specialist provider selects qualifying shares meeting Business Relief criteria. After 2 years, shares should qualify for 100% IHT relief. All income and gains remain ISA tax-free. You retain full access.

Tax Treatment

As an ISA, all income and gains are tax-free. Qualifying AIM shares held 2+ years may qualify for 100% Business Relief, exempting them from IHT on death.

Tax Advantages

  • ISA tax shelter — all dividends and gains are tax-free
  • Potential 100% IHT exemption after 2 years via Business Relief
  • No need to give away assets or set up trusts
  • Retain full control and access

Who Is This Suitable For?

Investors concerned about IHT who want to shelter wealth while maintaining access. Unlike trusts, AIM ISA portfolios remain fully accessible.

See Your Full Extraction Plan

Use our free calculator to see how AIM ISA fits into your overall tax-efficient extraction strategy.

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Frequently Asked Questions

Is Business Relief guaranteed?

No. It is assessed by HMRC on death and depends on whether shares qualify at that time. Not all AIM shares qualify.

What if I sell and reinvest?

The 2-year clock restarts for new shares. Proceeds remain within the ISA with no tax consequences.

AIM ISA vs trust?

AIM ISA is simpler — you retain control, no setup costs, no IHT entry charges. Trusts offer more certainty as assets are legally transferred.

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