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Investors’ relief

Nigel Giles and Ben Handley (BDO) provide a guide to a highly valuable relief for serial entrepreneurs and for investors in non-EIS qualifying businesses.

The purpose of investors’ relief

Investors’ relief (IR) in TCGA 1992 ss 169VA–169VY was introduced by FA 2016 and it draws on elements from both the entrepreneurs’ relief (ER) (now business assets disposal relief (BADR)) and enterprise investment scheme (EIS) legislation. It is aimed at encouraging entrepreneurial investors to inject new capital investment into unquoted trading companies in situations where the BADR or EIS/SEIS reliefs do not apply (see below under ‘When might the relief apply?’).

The relief is generous. Gains of up to a lifetime limit of £10m on qualifying shares are eligible for relief. IR qualifying gains are taxable at a maximum of 10%.

Since its appearance on the statute book IR has maintained a relatively low profile and could...

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