Spring Budget: 10% tax rate for long-term investors

From 17 March 2016, Entrepreneurs’ Relief (the 10% tax rate) will be extended to external investors in unlisted trading companies and who are neither directors or employees of that company.

 

An investor who subscribes for newly issued shares in an eligible trading company and holds those shares for a minimum period of three years, starting from 6 April 2016, will pay 10% Capital Gains Tax on the eventual sale of those shares.

 

The investors’ relief will be subject to a lifetime cap of £10m of qualifying gains.