Mark McLaughlin highlights a valuable capital gains tax relief that is sometimes overlooked.
Many individual business owners are aware that a capital gains tax (CGT) rate of only 10% can apply if business asset disposal relief (BADR) (previously known as entrepreneurs’ relief (ER)) is available on qualifying business disposals, up to a lifetime limit.
A major ‘headline grabber’ was the Chancellor’s announcement in the March 2020 Budget that the ER lifetime limit was reducing from £10 million to £1 million, for disposals from 11 March 2020.
The ‘other’ relief for investors
However, a less well-known relief, investors’ relief (IR), can be claimed for a reduced CGT rate of 10% on lifetime gains of up to £10 million, if the relief conditions are satisfied. IR applies to disposals of certain
