The Alternative Investment Market (AIM) was launched in 1995 - replacing the Unlisted Securities Market - and is a sub-market of the London Stock Exchange (LSE).
The purpose of AIM is to help small companies - who cannot cover the costs or do not meet the requirements associated with listing on the LSE main market - raise capital in order to grow.
Since its introduction in 1995, over 3,600 companies from all over the world have joined AIM, and it’s considered the most successful growth market in the world.
The requirements to list on AIM are much more relaxed than those to list on the LSE main market. For example, to list on the LSE main market, companies must have an expected market value at a minimum of £700,000. However, this is not the case for listing on AIM.
There are a number of tax benefits available to investors who invest in AIM shares. These include no capital gains tax or income tax on dividends to pay when held in a Stocks and Shares ISA, and income tax, capital gains tax and loss relief on shares that are EIS eligible, or invested in through a VCT.
CARLTON Bonds are an IFISA provider specialising in fixed term property bonds.
Against a backdrop of low interest rates and a volatile stock market, the IFISA can provide an attractive investment opportunity for experienced investors.
With the ability to hold peer-to-peer loans and debt-based securities, IFISA investments have the potential to generate higher rates of return than more traditional investment routes for investors with a greater appetite for risk.
To find out more, download our free IFISA guide.