Extension to Entrepreneurs’ Relief

Posted by siteadmin on Tuesday 22nd of March 2016.

A new form of Entrepreneurs' relief (ER), Investors’ relief (IR) will extended the benefits of ER to external investors in unlisted trading companies. IR will apply a 10% rate of Capital Gains Tax (CGT) to gains accruing on the disposal of ordinary shares in an unlisted trading company held by individuals, provided such shares were newly issued to the claimant and acquired for new consideration after 16 March 2016, and have been held for a period of at least three years starting from 6 April 2016. A person's qualifying gains for investors' relief will be subject to a lifetime cap of £10 million, which is in addition to the existing ER cap.