Small-cap investors and companies listed on London’s AIM junior stock market exhaled a sigh of relief following Chancellor Rachel Reeves’ Autumn Statement, albeit that sigh was only half as enthusiastic as it could have been.
Reeves confirmed that an inheritance tax exemption on AIM investments will remain, although that exemption will be slashed in half.
AIM investments will be subject to a 20% IHT, which is half the standard 40% IHT rate on other assets.
For green fertiliser producer ATOME PLC (AIM:ATOM), it was far from the worst outcome.
Olivier Mussat, chief executive of ATOME, stated: “Even with the reduction to inheritance tax exemption, AIM will still offer a unique way for investors to support homegrown, early-stage UK companies such as ATOME - the only UK-listed green fertiliser producer.
“The recent speculation on tax changes has impacted share prices but now the market has certainty, I expect we will soon see a recovery.”
Mussat said the progress ATOME has managed to accomplish “would not have been possible without AIM as a launch pad”.
“ATOME has the potential to disrupt and decarbonise one of the highest emitting sectors in the world by providing zero-carbon, renewable fertiliser for the food and agricultural sector.
“Our green fertiliser has the potential to supply the UK and EU markets, bolstering domestic food sovereignty through delivering fertiliser at the lowest cost and emissions footprint.”
Indeed, ATOME’s optimism of a recovery was reflected in the 4% rally on the AIM All-Share Index to 742.6.
ATOME’s share price added 0.4% to 63.24p.