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Caution: Many AIM-listed companies have warned Rachel Reeves (pictured) that speculation over the future of a key tax break is damaging investor confidence.
Dozens of prominent companies listed on London’s Aim junior market have warned Rachel Reeves (pictured) that speculation over the future of a major tax break is damaging investor confidence.
Companies including blender maker Fevertree, travel company Jet2 and Mothercare have written to the Chancellor, urging him to get “clear support” for corporate relief on inheritance tax.
Currently, most Aim-listed shares held for at least two years are not subject to inheritance tax to encourage investment in business growth shares.
But speculation has revolved around the future of the business relief tax exemption.
Now, more than 140 Aim-listed companies with combined profits of £1.5bn and employing more than 120,000 people have urged Reeves not to remove it, Sky News reported.
Signatories also include Revolution Bars, Virgin Wines, advertising firm M&C Saatchi and cosmetics company Warpaint.
They said Aim “has given innovative businesses like ours the ability to access patient capital as we grow” with the market “supported by significant tax relief, such as corporate relief on inheritance tax”.
The letter said: “The lack of clarity about the future of this relief has damaged investor confidence, clearly showing the close link between the relief and future market success.”
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