Investors' Relief

 Capital Gains Tax relief

  Investors' Relief offers a 14% Capital Gains Tax rate on gains on disposals of investments in unlisted trading companies, provided the investor retains their shares for a minimum of three years.
  From 6th April 2026 the tax rate will increase to 18%.

  This relief is applicable only to gains on newly issued ordinary shares (subscriber shares) in unlisted trading companies. Purchasing shares from existing owners does not qualify. There is no minimum shareholding requirement.

  The relief is subject to a lifetime cap of £1 million in capital gains for qualifying disposals made after 29th October 2024.

  The investor and any person connected to them, such as close family members, cannot be an employee or officer of the company.
 

  The investor can become an unpaid director of the company provided they were not involved in or connected with the company before investing. They can become an employee from a time at least 181 days after investing, provided there had been no reasonable prospect of their becoming an employee at the time the investment was made.

   For advice on tax matters, tailored to your particular circumstances, please contact us.