There is a relief from capital gains tax which was introduced for shares subscribed for on or after 17th March 2016, and held for at least three years. Therefore, no-one has yet been able to claim this relief, and investors may have forgotten about it. A disposal of shares made after 17th March 2019 could qualify for a lower CGT rate of 10%, rather than 20%, if it qualifies for “Investors’ Relief”.
There is a lifetime limit on gains that can be relieved of £10m, so the rate and limit are similar to Entrepreneurs’ Relief. However, for Investors’ Relief, the individual must not have been an employee during the three year period, nor can anyone connected with him have been an employee. The relief is of no help to an individual who hoped to get Entrepreneurs’ Relief but has failed those conditions.
The shares must be in an unquoted trading company, or an unquoted company which is the holding company of a trading group.
The shares must have been acquired by subscription rather than purchase, and there are detailed conditions similar to those for an investment to qualify for Enterprise Investment Scheme relief.
A seller of shares may not have control of the timing of the disposal, but it would be worth knowing whether or not the relief is available. Trident Tax can advise you on whether your shareholding would qualify.