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22 June 2020

AIM 25th Anniversary: What You Need to Know

Since its launch on 19 June 1995, the London Stock Exchange’s AIM has admitted over 3,800 companies from across the world, raised £45.4bn of equity capital at admission and a further £72.4bn in follow-on funding, and become one of the world’s most successful and resilient growth market.

A report published by Grant Thornton this month, shows the significant value and contribution of AIM companies to the UK economy. Last year alone, AIM companies contributed £33.5bn Gross Value Added (GVA) to the UK GDP and directly supported more than 430,000 jobs. When economic activity through AIM companies’ supply chains and expenditure of employees is considered, the overall economic impact of AIM companies is even larger - equivalent to £67.2bn in GVA and over 900,000 jobs. 

UK companies with an international presence have grown their overseas sales from £7bn in 2010 to £12.4bn in 2019. Moreover, over the last five years, the direct economic contribution made by AIM companies has grown by 35%.

AIM has provided access to much-needed capital during the COVID-19 pandemic. According to the London Stock Exchange, from January to May 2020, 158 companies raised over £1.9bn in follow-on capital on AIM, including 27 healthcare companies, many of which are leading research into treatments for the Coronavirus, which raised over £195m.

The market is likely to play a critical role in supporting economic recovery and future growth post-pandemic.

WHAT SORT OF STOCKS WILL I FIND ON AIM?

The companies are generally smaller than those on the official list, since there is no minimum market capitalisation, although this does not preclude some larger companies such as ASOS and Fever-Tree Drinks from trading on AIM.

AIM shares tend to be higher risk than those traded on the main market, but the constituents of AIM span a similarly wide range of commercial activities. Generally, there is less trading in AIM stocks meaning they are typically less liquid than their main market peers, i.e. share prices can be volatile.

AIM STOCKS AND TAX

Companies whose Ordinary shares are traded on AIM are qualifying investments within an ISA, Junior ISA (JISA) and Self-Invested Personal Pension (SIPP). Furthermore, no stamp duty must be paid on AIM-traded shares, unless the company has an official listing elsewhere.

AIM investments which qualify for Business Relief (formerly known as Business Property Relief) and have been held for two or more years also have the potential to offer 100% relief from Inheritance Tax. However, not all AIM companies qualify, and any investments must continue to qualify for the period held. Due to the complexities involved, Redmayne Bentley offers a discretionary IHT portfolio service with the aim of mitigating IHT without losing access to your assets should you need to realise them. 

For further details, and to discuss if this is suitable for your circumstances, please contact your local Redmayne Bentley office or 0113 200 6560.


Investments and income arising from them can fall as well as rise in value and you may lose some or all of the amount you have invested. There is an extra risk of losing money when shares are bought in some smaller companies, as there can be a big difference between the buying and selling price. Tax treatment depends on the specific circumstances of each individual and may be subject to change in the future.
AIM 25th Anniversary: What You Need to Know
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