{"id":19427,"date":"2019-06-20T15:45:45","date_gmt":"2019-06-20T15:45:45","guid":{"rendered":"https:\/\/smh.group\/?p=19427"},"modified":"2023-02-15T13:39:22","modified_gmt":"2023-02-15T13:39:22","slug":"investors-relief-restriction-runs-out-this-tax-year","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/investors-relief-restriction-runs-out-this-tax-year\/","title":{"rendered":"Investors\u2019 relief restriction runs out this tax year"},"content":{"rendered":"\n

Investors\u2019 relief, effectively an extension of entrepreneurs\u2019 relief<\/a><\/span> for external investors, is now only available for disposals made during 2019\/20 because of a three-year holding period requirement.<\/strong><\/p>\n\n\n\n

Like entrepreneurs\u2019 relief, investors\u2019 relief (introduced in 2016) gives a reduced rate of CGT<\/a><\/span><\/strong> of 10% for gains on qualifying share disposals by individuals or trustees. There is the same, but entirely separate, \u00a310 million lifetime limit. However, investors\u2019 relief is squarely aimed at external investors in unquoted trading companies. One of the requirements is indeed that the investor (or an individual connected with them) must not be an employee or a director of the company whilst owning the shares (although there are certain exceptions to this, such as being an unremunerated director). <\/p>\n\n\n\n

The relief\nis intended to encourage and reward new investment, so there are conditions to\nensure that the shares are subscribed for with new money that benefits the\ncompany.<\/p>\n\n\n\n

As is often\nthe case with tax reliefs, these conditions are quite complex. Broadly, shares\nmust be:<\/p>\n\n\n\n