Alix Hill looks at CGT investors’ relief and considers its usefulness in comparison to similar CGT reliefs.
Investors’ relief was introduced (by FA 2016) to encourage longer-term investment in unquoted trading companies by external investors, as opposed to entrepreneurs’ relief (ER) which requires the investor to be an employee or officer of the company with a minimum holding in that company.
What is the relief?
As with ER, investors’ relief applies a 10% rate of CGT to disposals of qualifying shares by investors. This is subject to a £10 million lifetime limit of gains, which is totally separate from the similar ER cap.
The legislation is contained in TCGA 1992, ss 169VA-169VY. There are a number of conditions to be met in order to obtain investors’
