Investors Can Purchase AIM Listed Stocks Through Their ISA

You Can Now Use Your ISA To Buy Shares quoted on AIM (The Alternative Investment Market). This means that dividends paid, and any capital gains on AIM stocks included in your ISA will be tax free. You are currently able to invest up to £11,520 a year in a stocks and shares ISA during the tax year 2013/14.

This creates a benefit to individual investors who are now able to include AIM listed companies within their ISA. The new rules also benefit smaller AIM listed businesses as investors now have a tax incentive to invest in their businesses.

However, we remind our readers that your capital will be at risk when investing in stocks and shares and you should never invest more than you can afford to lose. Investments in smaller growth AIM listed or growth companies are likely to come with additional risk compared to larger well established businesses quoted on the FTSE. Investors must also consider that a number of newly AIM listed companies may not be in a position to pay a dividend for several years until the business has established itself. This is an important consideration to be made before reaching an investment decision. Happy investing!