Investors’ Relief reduces the amount of Capital Gains Tax on a disposal of shares in a trading company that is not listed on a stock exchange. It is available to individuals but not companies who acquire shares in a company.
If you’re entitled to Investors’ Relief, qualifying gains up to the lifetime limit applying at the time you make your disposal, will be charged to CGT at the rate of 10%. Qualifying capital gains for each individual are subject to a lifetime limit of £10 million.
The shares must be new ordinary shares subscribed for by the individual for cash in an unquoted trading company. The shares must have been issued on or after 17 March 2016 and disposed of on or after 6 April 2019, as long as the shares have been owned for at least 3 years up to the date of disposal.
It is not usually available if you or someone connected with you is an employee of the company.
The relief is similar to Business Asset Disposal Relief but with fewer conditions to satisfy.