Taking Aim with your tax-free savings

 

Simon Read
Friday 06 September 2013 13:26 EDT
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Despite its reputation as being a market of risky stocks, Aim-listed shares are proving increasingly popular with holders of tax-free Individual Savings Accounts (Isas).

The change in the rules that allowed Aim investments to be included in stocks and shares Isas came into effect a month ago and stockbrokers report no let up in demand since.

Graham Spooner, investment research analyst at The Share Centre, reported: “There has been a great deal of Aim activity in the last month, with investors opening Isas purely to transfer their existing Aim holdings into.As Aim shares often offer strong growth potential, albeit at a higher risk, many investors are taking advantage of being able to protect these potential profits from capital gains tax.”

The Share Centre reported a 203 per cent increase in Isas opened in August compared to the same month last year, fuelled by the fresh interest in Aim shares. Some 23 per cent of all Aim shares bought in the month at the broker are now being held in an Isa.

The five most-purchased Aim stocks since 5 August, according to the broker, are Rare Earth Minerals, Gulf Keystone Petroleum, Sirius Minerals, Fastjet and Monitise.

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