CG63510 - Investors’ Relief: How the relief works

TCGA92/S169VC

The basic framework of Investors’ Relief is set out in s169VC.  Relief is available to individuals or the trustees of a settlement –

  • On a disposal of all or part of a holding of shares in a company,
  • Provided some of the shares are qualifying shares,
  • The relief means that all or part of the gain is charged to CGT at a lower rate.
  • The lower rate will apply to all of the gain where all of the shares in the holding are qualifying shares, otherwise to a proportion of the gain that reflects the qualifying shares.
  • There is an overall cap to the amount of gains that can be subject to the relief for any individual.
  • The relief available to trustees of a settlement is by reference to a beneficiary.
  • Allowable losses are deducted before applying the lower CGT rate to the remaining gain. .
  • It is available where shares are held jointly.

See CG63500 for a general description of the relief and the layout of the guidance.