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Budget 2010: Treasury tees up AIM shares for ISAs
by Nicholas Paler on Mar 25, 2010 at 13:25
The Treasury has said it will launch a consultation in the summer to assess whether shares listed on the Alternative Investment Market (AIM) should be eligible for inclusion in stocks and shares ISAs.
The current ISA rules do not recognise AIM shares, with only main market listed shares deemed eligible for ISAs.
However, in the Budget yesterday the Treasury said it wanted to do more to support businesses, and one way of doing so may be to make companies listed on AIM more accessible to investors.
It said: 'ISAs are a simple, flexible and accessible tax-advantaged savings vehicle. The government remains committed to these objectives, and also to supporting small and growing businesses. In this context, it intends to consult on allowing Alternative Investment Market (AIM) shares to be eligible as a tax-advantaged investment for retail savers.'
Her Majesty's Revenue and Customs (HMRC) confirmed that a consultation would take place in the summer. A spokesman said expanding the scope of stocks and shares ISAs would also allow investors to get the best possible returns.
Opening ISAs to AIM shares could in theory help IFA firms who list on the junior exchange to grow more quickly, if it opened up a new source of funding.
Chris Cummings, director general of the Association of Independent Financial Advisers (AIFA) (pictured above), said: 'It is a very welcome move.'
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