![]() ![]() ![]() There are other tax advantages for AIM investors, whether or not they hold their shares inside or outside an ISA. There is also no stamp duty on shares traded on the AIM whether or not they are bought in an ISA.įind out more about key tax rates, limits and allowances If investments are held outside an ISA, the Dividend Allowance means that individuals receive their first £1,000 in dividends tax-free, but any dividends above this amount will be charged at 8.75% for basic rate taxpayers, 33.75% for higher rate taxpayers and 39.35% for additional rate taxpayers. The standard CGT rate is 10%, while the higher rate is 20%.ĭividends received in ISAs are also exempt from tax. If your investments aren't held in a tax-efficient wrapper, you'll be taxed on profits above the annual CGT allowance, which in the 2023-24 tax-year is £6,000. You won't be taxed on dividends from AIM shares held in an ISA, nor will you have to pay Capital Gains Tax (CGT) on any of the profits you make. Tax advantages of holding AIM shares in an ISA Over the years, hundreds of companies listed on the AIM have failed, so investors must be prepared for the fact that they could see their investment disappear. Of course, the reverse could also happen – an AIM company you consider to be a hidden gem could end up being worthless in a matter of months. What may be a minnow now could potentially develop into the next big growth story in a relatively short period of time. The main appeal of adding these fast-growing, often dynamic smaller companies to your ISA portfolio is that, if you’re lucky, you might just be investing in the next big thing. But the AIM’s biggest constituent by market capitalisation is online retailer ASOS, which has proved to be one of the AIM’s greatest success stories since it listed on the market in 2001, although at times its investors have endured a very bumpy ride. Recent listings include cake shop chain Cake Box Holdings, and Tekmar Group, provider of subsea technology and services to the offshore wind and oil and gas industries. There are currently nearly 950 companies listed on the AIM. Over 3,800 companies have listed on the Alternative Investment Market (AIM) since it launched in 1995, collectively raising more than £109bn. ![]()
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