London’s AIM Market Faces Inheritance Tax Policy Change Risk

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 ...