Expert View – Qualifying conditions for the new Investors’ Relief


Following the release of the draft legislation, the ATT have expressed their disappointment with the complexity of the qualifying conditions for the new Investors’ Relief.

As the qualifying criteria are so complex, the ATT believe that the relief will be unattractive for modest levels of investment. The ATT are calling for a much simpler scheme to provide this kind of relief and are suggesting a simple extension to Entrepreneurs Relief (which is what we originally thought the Investors Relief would be).

Under the new provisions, external investors who subscribe for shares in relevant limited companies and then hold them for three years or more will be entitled to a preferential 10% rate of Capital Gains Tax (CGT) on gains up to a lifetime limit of £10 million.

Our Head of Tax, David Evans says:

“This really is disappointing. Having heard the Chancellor announce this measure in his Budget, it sounded like a simple extension to an existing relief. Having looked at the legislation this doesn’t appear to be the case.”

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