Investors' relief complements business asset disposal relief (BADR) (previously known as entrepreneurs' relief before April 2020) by extending the 10% capital gains tax rate available under BADR to gains accruing on the disposal of, or of an interest in, certain qualifying shares in an unlisted company1. As with BADR the rate of tax for investors' relief will increase to 14% from 6 April 2025 and then rise to 18% from 6 April 2026 to match the main lower rate and there are anti-forestalling rules which apply, see below 2. As most employees and directors are not entitled to investors' relief it is aimed at external investors.
The relief is available from 6 April 2019 onwards where a qualifying person disposes of all, or part of, or an interest in, a holding of shares and immediately before the disposal at least some of the shares are qualifying
Web page updated on 17 Mar 2025 13:13
