This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

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

This is one of our 1891 Premium articles

To see this article in full and unlock access to our complete library of 1891 articles click 'subscribe & unlock' below:

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee

Begin your tax saving journey today

Each month our tax experts reveal FREE tax strategies to help minimise your taxes.

To get Tax Insider tips and updates delivered to your inbox every month simply enter your name and email address below:

Thank you for signing up to hear from us!