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The way this works is that, on death, there is insurance cover for any capital losses on the original investment amount, paid for from the dividend income. This product is invested in a diversified portfolio of between 20 and 40 companies listed on the Alternative Investment Market. Unlike most solutions which take seven years to fall outside the estate, money invested in Aim companies is exempt from tax if it has been held for more than two years at the time of death. In addition, unlike most alternatives, investors retain access to their money at all times. So if they need to withdraw money at any time, they can. This product also has capital gains tax advantages because if the investor decides to sell, CGT is only levied at 10 per cent on those investments which have been held for at least two years. The Octopus investment record is excellent. The investments managed by its first-class Aim team have shown a return of around 39 per cent over the 20 months to September 1, 2006 since the original IHT service was launched. The product’s aim is entirely for capital growth. It is certainly very useful for those who wish to protect their estate against IHT after two years and who are looking for maximum capital growth. The risks of investing in Aim are only slightly greater than investing in a blue-chip portfolio but with the prospect of higher capital gains.