skip to main content
Jul 2013

AIM Shares to be allowed in ISAs later this year, Treasury announces

In a turnaround from Chancellor George Osborne's position following the Budget in March, the Treasury today announced that AIM (Alternative Investment Market) shares will included as part of the ISA allowance later in 2013 (date to be confirmed). This is a move that will be welcomed by many investors following the Government's original proposals to implement this, which were made in December last year. The move to allow AIM shares under the ISA umbrella is to form just one part of a raft of measures supporting smaller companies.

AIM - a growth market

AIM (formerly known as the Alternative Investment Market) is the London Stock Exchange's market for smaller, growing companies, and is the most successful growth market in the world, attracting over 3,000 international companies to date. Since AIM's inception in 1995, more than £60 billion in capital fundraising has enabled member companies to fund their development and pursue their growth ambitions.*

The move will end the current disparity between investment ISAs and self-invested personal pensions (SIPPs) regarding AIM shares. Under current rules, investment in AIM shares is permitted within SIPPS, but not within the annual ISA allowance. An end to this difference in treatment between the two investment vehicles is thus likely to be welcomed by many investors.

SMEs could benefit

Prior to today's announcement, the Government has been hesitant to bring AIM shares into the ISA fold, citing their high risk as one reason for this. However, consultation on whether to include AIM shares in ISAs was announced in 2012's Autumn Statement, and the subsequent change of heart appears to be motivated in part by a desire to boost funding for smaller companies. The consultation outcome report summaries that: "This policy could lead to an important capital injection for SME equity markets and encourage more investment in growing businesses. It will also improve choice for ISA investors by widening the range of shares eligible to be held in an ISA."

Commenting on the results of the consultation, Sajid Javid, Economic Secretary to the Treasury, said: "Today's changes to ISA rules will allow SMEs to access another source of funding and follows the Budget announcement to abolish stamp duty on shares traded on growth equity markets. Together these changes will make investing in SMEs more attractive and boost growth."

Around 20m people in the UK hold ISAs, which can be used to invest in a mixture of cash, gilts, bonds, investment trusts, or shares traded on recognised markets. The ISA allowance increased in line with the start of the new tax year on 6th April 2013 which, coupled with the changes to AIM rules, could offer investors even more tax-efficient flexibility.

* Source: The London Stock Exchange 2010(

No news, feature article or comment should be seen as a personal recommendation to invest. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular product. If you are at all unsure of the suitability of a particular product, both in respect of its objectives and its risk profile, you should seek independent financial advice.

The Tax treatment of ISAs depends on the individual circumstances of each client and may be subject to change in the future.

Lifetime ISAs

Save for your first home and retirement

Compare Lifetime ISAs

Junior ISAs

Invest for your child’s future

Compare Junior ISAs: 

Stocks & Shares ISAs

Invest tax-free in stocks and shares 

Compare Stocks and Shares ISAs:

Latest News

5 Considerations for Your Next Investment ISA

15th March 2021

You've decided to invest your savings into a Stocks and Shares ISA. You'll be using your tax-free ISA allowance for this year before the deadline, while also investing your money for your future. But what do you need to consider before opening an account? We've put together a list of our top five considerations for you to think about before you click "apply". 

Newsletter Signup

Sign up to our Newsletter to get exclusive news and offers direct to your inbox.

About us is a trading style of Fair Investment Company.

We've been comparing and recommending ISAs for many years so you can trust you're in good hands.

About us