The main conditions that must be met are: To qualify for Investors’ Relief you have to have subscribed for shares that meet the relevant qualifying conditions throughout the period you have owned them and that you have owned for at least 3 years. Individuals 6.1 Shares that qualify for relief The calculation of the relief is described in more detail at How the relief is calculated. If the qualifying gains together with all previous gains on which Investors’ Relief has been claimed, exceed the lifetime limit applying at the time you make your disposal, the whole of the excess will be taxable at the normal rate of CGT at the time your gains accrue. If you’re entitled to Investors’ Relief, qualifying gains up to the lifetime limit applying at the time you make your disposal, will be charged to CGT at the rate of 10%.
If you can do so, you should claim Investors’ Relief in your 2019 to 2020 tax return. They’re each entitled to Investors’ Relief up to the maximum amount available for an individual (see ‘Individuals’), provided that they each satisfy the relevant conditions for relief (see ‘Shares that qualify for relief’). Spouses or civil partners are separate individuals and may each make a claim. A claim to Investors’ Relief may be amended or revoked within the time limit for making a claim. For a qualifying share disposal in the tax year 2019 to 2020 (ending on 5 April 2020) a claim for Investors’ Relief must therefore be made by 31 January 2022. You must make a claim to HMRC in writing by the first anniversary of the 31 January following the end of the tax year in which the qualifying disposal takes place. Investors’ Relief must be claimed, either by the individual or, in the case of trustees of settlements, jointly by the trustees and the eligible beneficiary. See ‘Qualifying conditions’ for more information on qualifying conditions for trustees of settlements. Personal Representatives of deceased persons can only claim if the disposal took place whilst the deceased person was alive. Investors’ Relief is available to individuals and some trustees of settlements, but it’s not available to companies or in relation to a trust where the entire trust is a discretionary settlement. Qualifying capital gains for each individual are subject to a lifetime limit of £10 million. It is not usually available if you or someone connected with you is an employee of the company. It applies to shares that are issued on or after 17 March 2016 that are disposed of on or after 6 April 2019, as long as the shares have been owned for at least 3 years up to the date of disposal. Investors’ Relief reduces the amount of Capital Gains Tax on a disposal of shares in a trading company that is not listed on a stock exchange.
#AIM SHARES MANUAL#
You can also use the HMRC Capital Gains Tax Manual which contains sections (CG63500 to CG63644) that explain the rules in more detail. It gives a guide to straightforward situations, but does not cover all cases. This helpsheet gives information to help you decide if you’re entitled to Investors’ Relief.
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