Kingswood launches new AIM IHT & ISA Portfolio Service 

by | Feb 14, 2023

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New offering aimed at clients’ growing estate planning needs  

Kingswood Holdings Limited  has today announced the launch of its AIM IHT & ISA Portfolio Service, a discretionary investment management service which offers both income and capital growth solutions within a structure designed to mitigate inheritance tax liability after two years. 

According to Kingswood, the new offering is being launched in response to clients’ growing inheritance tax needs. Over the past twenty years, a large proportion of individuals invested in ISAs because of their attractive tax benefits, without considering the IHT liability on death. More than six million of the UK’s c.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. 

 
 

The dilemma is all the more intensified with the latest data published from HMRC revealing that IHT receipts from April 2022 to December 2022 reached £5.3 billion, a £700 million rise compared to the same period a year earlier. 

The Kingswood AIM IHT & ISA Portfolio Service provides a simple solution whereby individuals can continue to keep all the tax benefits of their ISA and, after two years, qualify for 100% IHT relief on these savings as well. With investments in companies listed on the Alternative Investment Market (AIM) the service also means that clients can retain access and control of their investments at all times. 

Investors will have a portfolio consisting of 25 to 40 companies which have passed a proven and rigorous 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. BR allows an unlimited amount to be invested at any time and typically becomes IHT-effective after just 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 the newly refreshed Kingswood Personal: a highly bespoke 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 & 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.” 

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