June 3rd, 2020 / Insight posted in Brochures

Investors’ Relief

Investors’ relief provides capital gains tax relief for external investors in unlisted trading companies.

  • Qualifying gains benefiting from the relief are taxed at a reduced capital gains tax rate of 10%, in comparison with the standard rate of capital gains tax (for higher rate taxpayers) of 20%.
  • A maximum lifetime cap of £10,000,000 of gains can benefit from the relief.
  • The company that issues the shares must be either a trading company or the holding company of a trading group throughout the shareholding period.

‘Trading company’ and ‘trading group’ have the same meanings as for business asset disposal relief (BADR), formerly known as entrepreneurs’ relief.

Further details on the investments that can qualify for the relief, and the interaction with other capital gains tax reliefs, are set out in our flyer.

Download our Investors’ Relief flyer.