Can you claim ‘investors’ relief?

A few years ago, you bought shares in a new company and would now like to sell them, would you be entitled to Investors’ relief?

Investors’ relief was introduced by the Government more than 3 years ago. It applies to capital gains made from the sale of shares which have been owned for at least three years since 6 April 2016.

You only need to own as little as 1% of the company’s ordinary shares to apply. And, by using the relief, the capital gain on the sale would be taxable at 10%.

Restrictions are:

  • You need to have subscribed to ordinary shares and not have been given them by someone else.
  • The shares need to be in an unlisted company.
  • You must have acquired the shares on or after 17 March 2016.
  • You must have owned them for 3 years.
  • You must not be connected to anyone in the company.
  • Your total capital gains and taxable income for the year must not have exceeded the basic rate threshold.