Brown Shipley Launches New Service for HNWs

Stephen Harris

8 November 2005

UK-based private bank Brown Shipley has launched an investment scheme with favourable tax features for high net worth investors based upon the UK’s smaller cap market, AIM. The Brown Shipley AIM Portfolio Service offers the growth potential often afforded by companies on AIM, and after two years will be 100 per cent free from Inheritance Tax with the effective Capital Gains Tax rate reduced to only 10 per cent. The minimum investment is £100,000 ($173,000). Investing in AIM can be highly tax-efficient and it is this combination of performance potential with tax breaks that Brown Shipley believes makes the AIM market attractive for some HNW investors, although not all AIM companies qualify for tax reliefs. These include accelerated taper relief whereby the CGT rate payable reduces to 10 per cent. Most shares are subject to a reduction to 24 per cent over a 10 year period. The portfolio will have approximately 10 stocks across a variety of business sectors in an attempt at minimising risk whilst at the same time maximising growth potential.