In the last year, upwards of 90 companies have exited Aim, resulting in a significant decline in listings to 695—the lowest in 23 years—according to UHY Hacker Young. This shift arises amidst concerns about potential changes to tax exemptions that have historically supported Aim shares.
Over the past year, more than 90 companies have withdrawn from Aim, signaling a trend wherein businesses increasingly shy away from the London Stock Exchange and its junior market. This mass exodus has resulted in Aim’s total listings diminishing to 695, marking the lowest figure seen in 23 years, as reported by UHY Hacker Young, the accountancy firm.
Aim was established in 1995 to provide smaller companies with an opportunity to list on the stock exchange with fewer regulations and lower costs compared to a full listing on the London Stock Exchange. In recent times, this market has faced significant challenges, leading to concerns about its future viability. A critical aspect impacting Aim’s attractiveness is the prospect of changes to tax incentives, particularly the exemption from inheritance tax on Aim shares held for at least two years, a benefit that has traditionally underpinned investor confidence.
The withdrawal of over 90 companies from Aim underscores a troubling trend reflecting the growing aversion to the London Stock Exchange’s junior market. With the number of listings hitting a 23-year low, concerns are mounting regarding the sustainability of Aim, particularly if the Chancellor’s upcoming budget modifies or eliminates tax incentives crucial to its success. The future of Aim could largely depend on maintaining these key tax benefits to attract and retain listings.
Original Source: www.thetimes.com
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