Schedule 14 Finance Act 2016 has introduced an attractive new capital gains tax relief, known as Investors' Relief.
This new relief is similar to Entrepreneurs' Relief - where specified conditions are met, it can operate to reduce an individual's effective capital gains tax rate to 10% on a disposal of qualifying shares, subject to a £10m lifetime limit.
Various conditions apply to the shares, the company issuing the shares and the investor – these include a requirement that the shares are subscribed for by the investor on or after 17 March 2016 and held for at least three years (and at least until 6 April 2019).
For more information, and a table comparing Investors' Relief, Entrepreneurs' Relief and the Enterprise Investment Scheme and Seed Enterprise Investment Scheme reliefs, please click here.
Sign up to our email digest