CG63560 - Investors’ Relief: Claims for relief

TCGA92/S169VM

Claims for relief must be made on or before the first anniversary of the 31 January following the tax year in which the disposal was made. Any withdrawal of the claim must be made within the same period.

A claim to Investors’ Relief is not irrevocable, it may be amended or revoked within the time limit under TMA70/Sch 1A and the provision for self assessment and stand alone claims may extend the time limit for amendment, particularly when an enquiry is opened.

Where it is unclear whether a gain will in fact arise, say because shares have been given away and a valuation needs to be agreed, then a claim may be made on a provisional basis. That is, it would only have effect if it is established that a gain does arise, which may only happen after the time limit for making a claim has passed.

Where a notice to file a return has been issued, then the claim should be made in the self assessment return of the individual or of the trustees in the case of a disposal of trust assets. In other circumstances, the provisions of TMA70/Sch 1A will apply.

Spouses and civil partners

Spouses and civil partners are taxed independently and may each make a claim. Each is entitled to claim Investors’ Relief on gains up to the amount of the lifetime cap, provided they each satisfy the relevant conditions for relief.

Trustees

In the case of a disposal by trustees, a claim must be made jointly by the trustees and the eligible beneficiary.

Overlap with Business Asset Disposal Relief

Investors’ Relief is not normally available to an employee of the share issuing company but being an employee is a condition for Business Asset Disposal Relief on a share disposal. Therefore it will be very unusual to have a gain that could be eligible for both reliefs. But where that does happen HMRC will accept that the relief may, if wished, be apportioned between amounts to be covered by either relief.

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