Proactive - Interviews for investors

How AIM market could suffer from IHT relief removal – insights from Wealth Club's Nicholas Hyett

Episode Summary

Wealth Club investment manager Nicholas Hyett speaks with Proactive's Stephen Gunnion about the potential repercussions of removing inheritance tax (IHT) relief from AIM-listed investments. Hyett expressed concerns about the possible impact on the UK’s ability to retain its fast-growing companies, highlighting that removing IHT relief could lead to both short-term market volatility and long-term valuation challenges. Hyett emphasised the importance of IHT-seeking investors in the AIM ecosystem, noting that these investors provide stability to maturing companies. “If you take away that investor base, you not only disrupt the whole flow of companies through AIM, but you also potentially make it a lot harder to raise money,” he explained. According to Wealth Club’s research, non-IHT small company funds also play a vital role in supporting AIM, dispelling the myth that only wealthy, tax-focused investors would be affected by this policy shift. Hyett warned that reduced IHT relief could increase capital costs for AIM companies, further intensifying the risk of them relocating overseas. He also cited a recent downturn in AIM IPOs, partially attributed to this uncertainty. Summing up the potential damage, he stated, “I think it’s inevitable… short-term volatility and long-term lower valuations.” For more insights into AIM’s future, like this video, subscribe to Proactive’s channel, and turn on notifications to stay informed about the latest financial market developments. #WealthClub #NicholasHyett #AIMMarket #IHTRelief #SmallCapInvesting #UKInvestments #MarketVolatility #InheritanceTax #AIMInvestors #FinanceInsights #ProactiveInvestors #invest #investing #investment #investor #stockmarket #stocks #stock #stockmarketnews