Investors’ relief – how to reduce capital gains tax liability

Stephanie Webber, tax writer at Croner-i, explains how to use capital gains tax (CGT) relief of up to £1m on gains by taking advantage of the reduced tax rate using investors’ relief, effective from April 2019, highlighting potential pitfalls and interplay with entrepreneurs' relief

Potentially, investors’ relief can save capital gains tax (CGT) of up to £1m – it is available on relevant gains of up to £10m and reduces the CGT rate from 20% to 10%. However, although it was introduced by Finance Act 2016 (FA 2016), the earliest date on which a gain may be realised that qualifies for the relief is 6 April 2019.

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