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The ‘forgotten’ CGT relief

By Mark McLaughlin, August 2020

Mark McLaughlin highlights a valuable capital gains tax relief that is sometimes overlooked. 

Many individual business owners are aware that a capital gains tax (CGT) rate of only 10% can apply if business asset disposal relief (BADR) (previously known as entrepreneurs’ relief (ER)) is available on qualifying business disposals, up to a lifetime limit. 

A major ‘headline grabber’ was the Chancellor’s announcement in the March 2020 Budget that the ER lifetime limit was reducing from £10 million to £1 million for disposals from 11 March 2020.  

The ‘other’ relief for investors 

However, a less well-known relief, investors’ relief (IR), can be claimed for a reduced CGT rate of 10% on lifetime gains of up to £10 million if the relief conditions are satisfied. IR applies to disposals of certain shares in a trading

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