Budget 2013: Stamp duty on smaller company shares axed Companies currently listed on Aim include Majestic Wine, the Mulberry Group, stamp experts Stanley Gibbons Group and fahsion chain Asos PLC. However many advisers said they feared this could send the wrong signal to some ordinary investors who may end up with unsuitable and risky investments. The FTSE All Share AIM Index stood at 2,925 on January 3 2000. Today it is only at 743 - a fall of 75pc over 13 years. In six months from June to December 2008 this index fell by a staggering 62pc. Patrick Connolly an adviser with AWD Chase de Vere said: "Losses of this size are too great for most ordinary investors to withstand. However due to the nature of the companies listed these investments are only suitable for wealthier investors who are prepared to accept the high risks involved, and even then only for a small proportion of their overall investment portfolio. Many investors gain exposure to this market through VCT, which typically invest in a wide portfolio of AIM shares and other start-up companies. These structures offer generous tax benefits, typically allowing investors to gain upfront tax relief on these investments. Mr Connolly added: "Smaller companies are not only less secure than larger companies but their shares are also more illiquid, with less people willing to buy them when times are hard. This means it can be difficult to sell when you want and at the price you want. But others welcomed this move. Philip Secrett, a partner at accountants Grant Thornton said: "The removal of stamp duty on trading in Aim quoted stocks is a very significant event for the growth market. This stimulus should contribute to the growing momentum of confidence and drive larger volumes of funds towards existing Aim companies and new IPOs. Jason Hollands, managing director of Bestinvest said: "The intention to include Aim shares within Isas will be welcome news to those investors who prefer to trade individual stocks and share rather than invest through funds. This will considerably widen the universe of opportunities for them wthin the tax efficient structure of an Isa. Announcing this change George Osborne said: "This [move] will directly benefit hundreds of smaller quoted UK firms, lowering their cost of capital and helping to promote jobs and growth across the UK." He added that at a time when there were introducing a transaction tax in parts of Europe "here in Britain we are getting rid of one." Make the most of your Isa allowance with the Telegraph Fund Supermarket >>