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 CG63500P for a general description of the relief and the layout of the guidance.