The number of companies on London’s AIM market has dropped below 700 for the first time since 2001, with 92 firms delisting over the past year, new data from accountants UHY Hacker Young reveals.
Speculation around the potential end of a key inheritance tax relief for AIM shares has added pressure to the junior market.
Chancellor Rachel Reeves is reportedly considering cutting the tax relief, which currently exempts AIM shares held for at least two years from inheritance tax, potentially raising £1.6 billion annually.
City broker Peel Hunt warned that removing the relief could result in a 25% drop in AIM share prices as investors withdraw.
Colin Wright of UHY Hacker Young urged the government to support AIM rather than deter investors, noting that high listing costs and strict regulations are already challenges for companies on the market.