Tax Planning

At BEO Financial we have specialist tax advisors. We recognize that to deliver the best returns you need to fully understand tax laws to make sure that you don’t need to pay more than you need to. To help you to Under current legislation bequests made to a deceased’s spouse or to recognised charities escapes inheritance tax (IHT). Otherwise the first €325,000 of assets bequeathed on death attracts no IHT and everything over this figure attracts tax at the rate of 40%.

An exemption to this are shares in companies that qualify for Business Property Relief (Business Assets). Companies that qualify for such relief are those that are not listed on a recognised Stock Exchange. Most importantly the AIM and OFEX (now called PLUS Quoted) markets are not recognised stock exchanges for this purpose, although companies utilising these platforms are quoted and may be traded. Business assets are: Exempt from IHT if the initial investments into AIM and PLUS Quoted securities were purchased at least two years before the time of death and remained in AIM or PLUS Quoted securities up to the date of death.

Subject to capital gains tax (CGT) at 18% on gains in excess of the annual exemption (€11,300 for 2022/2023).

There are some AIM and PLUS Quoted companies that currently do not qualify for these reliefs, these include companies dealing in property, investments and general financial instruments (i.e. investment companies) and cash shells.

There are over 1,000 companies listed on AIM and the number has been growing. This makes it possible for us to create and manage a portfolio to take advantage of these far reaching tax breaks. We do have to point out that AIM and PLUS Quoted securities are regarded as high risk and trading liquidity cannot be guaranteed. Investors should only contemplate investing in such equities if they can afford to lose any of the capital committed.

We believe the higher risk nature of AIM and PLUS Quoted investing makes it essential to have a broad spread of companies that have been researched and are regularly monitored. Over the past several years we have put together a core universe of companies from which we select for IHT mitigation portfolios. These companies are regularly appraised and added to when appropriate opportunities arise.

An annual fee of 1% plus VAT will be charged on the value of the portfolio, taken half yearly. Dealing commission will be charged at the normal rate of 1.65% on the first €10,000 consideration and 0.5% on any balance (per deal).

BEO Financial’s discretionary account will be managed on a “contract of care” basis with the performance bench marked against the AIM All Share Index. You will receive quarterly valuations and a comprehensive half yearly report and reconciliation.

The minimum initial investment for the AIM portfolio is €30,000. The account can be liquidated and the sale proceeds paid to you at any time. In such an event, our normal dealing commission would be levied as well as the management charge on a pro rata basis.

If you would like to proceed with the AIM portfolio, simply complete a Client Agreement Form and return it to BEO Financial. If you wish to sell existing securities to raise the funds to invest, you can detail these instructions on the enclosed application form. We will then establish an AIM portfolio on a discretionary managed basis, the securities will be registered in our nominee name.

We have a number of options available that qualify for the Enterprise Investment Scheme (EIS) this can offer a great way to reducing your tax liability. Speak with your relationship manager who can show you this can be an integral part of your portfolio.