AIM Report 2019

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This material is not intended to constitute legal or tax advice and we recommend that prospective investors consult their own suitably qualified professional advisers concerning the possible tax consequences of purchasing, holding, selling or otherwise disposing of shares in AIM listed companies. Intelligent Partnership is not authorised and regulated by the Financial Conduct Authority and does not give advice, information or promote itself to individual retail investors. It is the responsibility of readers to satisfy themselves as to whether any arrangement contemplated is suitable for recommendation to their clients. Tax treatment depends on an investor’s individual circumstances and may be subject to change. Certain investments carry a higher degree of risk than others and are, therefore, unsuitable for some investors. Welcome to the third edition of the Alternative Investment Market (AIM) Industry Report. The global financial market continues to throw up surprises and, more than a decade after the great financial crisis, finding long term, sustainable growth remains the preoccupation of politicians and economists across the globe. AIM has been at the forefront of that battle and over the past few years has cemented its reputation as “the world’s leading growth market”. Despite a turbulent end to 2018, AIM has bounced back and continues to offer investors an opportunity to grow their cash within a regulated environment. As the market matures, the London Stock Exchange has introduced changes to polish AIM’s reputation and give further comfort to investors. Among these changes is a tightening of the corporate governance rules for companies quoted on the market, ensuring that AIM-quoted firms have the transparency to give confidence in how they operate. Another signifier of AIM’s growing maturity has been the number of larger companies that now see the market as their natural home, instead of simply using it as a stepping stone to the senior stock exchange. Companies like clothing retailer ASOS, drinks firm Fever-Tree and others have blossomed on AIM and have decided that the market can continue to serve them well, despite having long outgrown their small or emerging business tags. Rule changes to some of the tax efficient schemes that encourage investment into AIM-quoted companies have also come into force since our last report, with investments in Venture Capital Trusts (VCTs) and the Enterprise Investment Scheme (EIS) requiring a higher risk to capital than in the past. However, new products have been launched into the market since the new rules took effect, demonstrating that AIM continues to be suitable for these types of investment. Meanwhile, Business Relief products continue to be a mainstay of tax efficient investment options within AIM. We also produce Adviser’s Guides to VCTs, the EIS and Business Relief, which offer an everyday reference to the practicalities involved in harnessing these tax efficient schemes, whether on AIM or elsewhere. GUY TOLHURST Managing Director Intelligent Partnership Editorial Paul Jarvis Creative Mar Alvarez Estela Alcay Sub-editing Lisa Best Research Paul Jarvis Lisa Best Van Li Marketing Carlo Nassetti Print Palina Limited Copyright © Intelligent Partnership 2019 ISBN: 978-1-913273-00-2