Today represents the first anniversary of the introduction of Investors’ relief (IR).
Where available, IR enables investors to enjoy a 10% rate of capital gains tax on disposal of their unlisted share investments.
IR was introduced to encourage greater external and longer term investments in unlisted UK trading companies and to attract investors who may not be eligible for tax relief under the Enterprise Investment Scheme or Seed Enterprise Investment Scheme.
IR is available on up to £10m of lifetime investments and is distinct to the similar £10m limit available under Entrepreneurs’ Relief (ER). In contrast to ER, IR is only available to investors who are not an employee or director of the company invested in and requires a longer minimum shareholding period of 3 years.
If you would like to understand more about IR and its eligibility criteria, please contact Andrew Wilson on 01788 539004 or Jon Kicks on 01788 539018.