• 01 Jun 2016
  • jane.potter

This new relief will reduce the top rate of CGT payable on the disposal of shares in trading companies from 20% to 10%. But to achieve that tax reduction the shareholder must:

  • Hold the shares for a continuous period of three years (minimum)
  • Not be an employee or officer of the company or connected with such an employee or officer
  • not receive value exceeding £1,000 from the company in a four-year period that starts twelve months before the shares were issued.

In addition the shares must be newly issued to the shareholder on or after 17 March 2016 and disposed of after 5 April 2019.

It seems that investors’ relief will be limited to people previously completely unconnected with the company: socalled ‘angel investors’. The detailed rules will also prevent those investors from taking any guiding role within the company such as a nonexecutive director, if they want to retain the tax reduction.

When can VAT be reclaimed?
Corporation Tax
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