• Investors’ relief provides capital gains tax relief for external investors in unlisted trading companies.
• Qualifying gains under the relief are taxed at a reduced capital gains tax rate of 10%, this compares to 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 Entrepreneurs’ Relief.