No more tax raids, pleads AIM boss after the junior market was targeted in Rachel Reeves's Budget
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The boss of London’s AIM market has called for Labour to rule out any further tax raids after it was targeted in Rachel Reeves’s Budget. AIM was hit when the Chancellor halved the inheritance tax relief available on shares in the junior market from 100 per cent to 50 per cent.
That was not as bad as some had feared, amid speculation that the business relief tax break would be abolished in its entirety for AIM shares. But the junior market – which underperformed the rest of the London market ahead of the Budget amid the speculation – has continued to struggle since then.
AIM’s boss, Marcus Stuttard, told the Mail that in order to close the gap investors must have reassurance that Reeves will not come back for more. He said: ‘The market is looking for some certainty from government that there will be no further changes to business relief.’.
Budget pain: London's Aim junior market was hit when the Chancellor halved the inheritance tax relief available on shares in the junior market from 100% to 50%. AIM – which is part of the London Stock Exchange Group – argues that as a key platform for pioneering growth companies to raise funds where they might be scarce elsewhere, it makes an important contribution to the UK economy.
It has enjoyed a range of benefits from tax relief schemes ‘in recognition of the role that AIM plays in supporting this vital segment of the economy’. But it is down by nearly 10 per cent over the past six months. That compares unfavourably with London’s blue-chip FTSE 100, which is roughly flat over the same period.
