News Formal

London’s AIM Market Faces Risk Over Inheritance Tax Policy Change

  • 📰 BNNBloomberg
  • ⏱ Reading Time:
  • 52 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 50%

Belgique Nouvelles Nouvelles

Belgique Dernières Nouvelles,Belgique Actualités

A £75 billion ($91 billion) stock market for emerging UK companies risks losing some of its appeal for investors should the government alter or scrap inheritance tax.

The Times reported on Sept. 23 that Prime Minister Rishi Sunak is planning big cuts to the levy, a move that would deal a blow to the AIM market for small- and medium-sized growth stocks, according to Nick Hyett of Wealth Club, a firm specializing in tax-efficient investing.

Hyett estimates that as much as 10% of the junior UK market stems from the fiscal benefits attached to owning shares in the firms that make it up. Many AIM shares are exempt from the levy as long as the buyer has held them for two years or more. The market includes firms such as tonic water-maker Fevertree Drinks Plc and legal financier Burford Capital Ltd.

While losing the tax perk would be something investors would have to take into account, it would be “stretching it” to say it would be “a catastrophe for AIM,” said Hyett, an investment manager at Wealth Club.That’s because the bulk of the shares on AIM are held by founders of companies or other investors seeking the bumper returns that can come from owning shares in companies at an early stage of their development.

“Under those circumstances it is unlikely that IHT planning was major driver for investment even in the qualifying quoted companies on London’s junior platform,” he said. “That said, it could have influenced some purchases.”

 

Merci pour votre commentaire. Votre commentaire sera publié après examen.
Nous avons résumé cette actualité afin que vous puissiez la lire rapidement. Si l'actualité vous intéresse, vous pouvez lire le texte intégral ici. Lire la suite:

 /  🏆 83. in BE

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Stock market today: Wall Street drifts as the pressure keeps mounting from the bond marketNEW YORK (AP) — A sluggish day for stocks kept September on track to be the worst month of the year for Wall Street. The S&P 500 managed a gain of 0.4%, coming off its worst week in six months.
La source: SooToday - 🏆 8. / 85 Lire la suite »

China’s Ailing Property Market Faces Key Test Over Golden WeekChinese developers are counting on the upcoming Golden Week holiday period to spark a long-awaited revival in home sales, in the first key test of whether recent policy support is enough to arrest the slump.
La source: BNNBloomberg - 🏆 83. / 50 Lire la suite »

Stock losses accelerate amid Fed fallout, shutdown worries: Stock market news todayStocks pulled back as Wall Street continued to face up to the prospect of a long period of high interest rates.
La source: YahooFinanceCA - 🏆 47. / 63 Lire la suite »

Stock losses deepen amid Fed fallout, shutdown worries: Stock market news todayStocks pulled back as Wall Street continued to face up to the prospect of a long period of high interest rates.
La source: YahooFinanceCA - 🏆 47. / 63 Lire la suite »

Stock futures tick higher after steep selloff: Stock market news todayStocks looked set to take a breather on Wednesday from steep losses fueled by concerns about economic impact of 'higher for longer' rates.
La source: YahooFinanceCA - 🏆 47. / 63 Lire la suite »