Tax incentives for companies investing in AIM companies
Published by a LexisNexis Tax expert
Last updated on 17/10/2019

The following Tax practice note provides comprehensive and up to date legal information covering:

  • Tax incentives for companies investing in AIM companies
  • Table summarising key investor tax reliefs for companies investing in AIM shares

Tax incentives for companies investing in AIM companies

A few tax incentives are available to companies investing in unlisted shares and securities such as shares admitted to trading on AIM. AIM is one of the markets owned and operated by the London Stock Exchange (LSE) and is aimed at small, mid-cap and growing companies.

Although shares and securities traded on AIM are colloquially referred to as 'listed on AIM', they are in fact not listed, but rather admitted to trading on AIM. If a company has shares or securities admitted to trading on AIM and it has no other shares or securities that are listed on a recognised stock exchange, the company is an unquoted company.

This Practice Note contains a table outlining the key tax incentives available to companies that invest in unlisted higher-risk companies.

For information on the tax incentives available for individuals, and the policy behind such reliefs, see Practice Note: Tax incentives for individuals investing in AIM companies.

In this Practice Note:

  1. AIM refers to the AIM market of the London Stock Exchange, and

  2. AIM shares refers to unlisted shares admitted to trading on AIM

Table summarising key investor tax reliefs for companies investing in AIM shares

Tax reliefRelevance to AIMMaximum reliefWho can claim and how to claim?
Share loss relief: enables an investment company that realises a
Related documents:
Key definition:
Shares definition
What does Shares mean?

The CA 2006 merely provides that a share is a share in the company's share capital. A company's share capital comprises the number of shares issued by it to investors either on or after incorporation. Those investors then become the shareholders in the company. A shareholder’s shares are their personal property. By contrast, the assets of a company are owned by the company itself. Owning shares does not entitle a shareholder to any property rights in the company's assets.

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