Kingswood Launches New AIM IHT & ISA Portfolio Service

Amanda Cheesley Deputy Editor London 16 February 2023

Kingswood Launches New AIM IHT & ISA Portfolio Service

The new offering responds to clients’ growing estate planning needs.  

Kingswood Holdings, an international wealth and investment management group, has launched its AIM IHT & ISA Portfolio Service this week. It is an investment management service which offers income and capital growth solutions within a structure designed to mitigate inheritance tax liability after two years. 

The firm said that the offering is being launched in response to clients’ growing inheritance tax needs. 

Over the past twenty years, a large proportion of individuals have invested in ISAs because of their tax benefits, without considering the IHT liability on death. 

More than six million of the UK’s approximately 22 million ISA investors are now over 65 years old and are faced with the dilemma of either keeping the money in the ISA despite the potential IHT liability or transferring it from an ISA into an inheritance tax planning vehicle, which would reduce any IHT liability but would also mean losing control of their assets and/or waiting several years before the IHT liability is mitigated. 

IHT receipts from April 2022 to December 2022 reached £5.3 billion ($6.4 billion), a £700 million rise compared with the same period a year earlier. 

The figures show how much the government’s inheritance tax take is increasing. This is due largely to the steady increases in house prices which are pushing many families – who are relying on money being passed down through the generations – above the threshold .

The Kingswood AIM IHT & ISA Portfolio Service aims to enable individuals to keep the tax benefits of their ISA and, after two years, qualify for IHT relief on these savings as well, the firm said. With investments in companies listed on the Alternative Investment Market, the service also means that clients can retain access and control of their investments. 

According to Kingswood, investors will have a portfolio consisting of 25 to 40 companies which have passed a proven selection process and have been independently assessed as to their likely suitability for Business Relief. 

BR, which has grown in popularity over the last couple of decades, allows an unlimited amount to be invested at any time. Typically, it becomes IHT-effective after two years which compares well with any seven-year effective strategy. Investors benefit from retaining full control and access to their investment should it be needed in future for any purpose, rather than having to gift it away forever. The portfolio is spread across a variety of investment sectors to provide diversification, thereby helping to ensure that portfolios are not overly exposed to one particular company or investment sector. 

The offering sits within Kingswood Personal: an investment management solution designed to provide clients with active and ongoing management of their portfolio, catered to their risk appetite and personal investment goals and preferences. The service was bolstered following the acquisition of IBOSS Asset Management Limited in November 2021, which complemented Kingswood’s existing research offering with investment management expertise to build tailored portfolios.  

Paul Surguy, managing director – head of investment management and proposition at Kingswood, said: “The launch of this new offering is a reflection of our client-centric approach. We recognised the growing need and demand from our clients for estate planning services and built an easy-to-use, speedy solution which simultaneously helps mitigate IHT and target portfolio growth via diversified investments in AIM-listed firms.” 

Kingswood offers a range of investment solutions to its clients from private individuals to some of the UK's largest universities and institutions, including investment advice and management, personal and company pensions and wealth planning. See here for previous articles on this topic.

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