Investors’ relief (CGT break)

Introduced in the Finance Bill 2016, this allows external investors to subscribe for shares in an unquoted company and provided the company is qualifying and the shares held for at least three years any capital gain will only be taxed at the rate of 10% subject to a lifetime limit of £10,000,000.

This relief is in addition to the entrepreneurs’ relief lifetime limit of £10,000,000 which requires an investor to be an employee or director in the company.