Small businesses are raising the alarm over a tax attack on the AIM market
Note: Many AIM-listed companies have warned Rachel Reeves (pictured) that speculation over the future of a key tax benefit is damaging investor confidence
Dozens of prominent companies listed on London’s junior Aim market have warned Rachel Reeves (pictured) that speculation over the future of a key tax benefit is damaging investor confidence.
Companies including mixer manufacturer Fevertree, travel agency Jet2 and Mothercare have written to the Chancellor urging ‘clear support’ for business relief on inheritance tax.
Currently, most Aim-listed shares held for at least two years are not subject to inheritance tax to encourage investment in entrepreneurial growth stocks.
But there is speculation about the future of corporate tax breaks.
Now more than 140 Aim-listed companies with combined profits of £1.5 billion, employing more than 120,000 people, have urged Reeves not to delist the company, Sky News reported.
Signatories also include Revolution Bars, Virgin Wines, advertising agency M&C Saatchi and cosmetics company Warpaint.
They said Aim has ‘given innovative companies like ours the opportunity to access patient capital as we grow’, with the market ‘supported by important tax reliefs such as business relief on inheritance tax’.
The letter said: ‘A lack of clarity about the future of this aid has damaged investor confidence, clearly demonstrating the close link between the aid and the future success of the market.’
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