Treasury: No plans to allow AIM shares in ISAs

The government has said it has no intention of allowing Alternative Investment Market (AIM) shares to be held in ISAs.

The previous government had considered allowing AIM shares within ISAs, arguing this could help support small and growing businesses that are typically listed in the market.

In a written question to the Treasury, Jake Berry, Conservative MP for Rossendale and Darwen, asked if the government planned to bring forward proposals to allow AIM shares to be held in ISAs.

In response, Mark Hoban, financial secretary to the Treasury, said: "The government believe that ISAs are a trusted brand, and that it is important that this is maintained. The government also believe that ISAs should be mainstream savings products.

"The government therefore do not intend to allow shares listed on AIM - which can be riskier and less liquid - to be qualifying investments for ISAs.

"It is already the case that companies listed on AIM may benefit from other incentive schemes, such as investments made through Enterprise Investment Schemes and Venture Capital Trusts."

Adrian Lowcock, senior investment adviser at Bestinvest, agrees the high-risk nature of investing in AIM shares means they are not necessarily suitable for ISAs.

"The main reason they are doing this is to protect the investors.

"There are liquidity issues with AIM shares as, with low demand, you can't necessarily sell out easily when you want to or at the right price."