Investors’ Relief (UK capital gains tax)
Investors’ Relief can apply to a qualifying individual’s disposal of eligible shares in an unquoted trading company, subject to subscription, holding-period, investor-status and other statutory conditions. For the 2025–26 assessment basis, the qualifying rate is 14% and the applicable lifetime limit is £1 million, subject to previous qualifying gains. Its conditions differ from Business Asset Disposal Relief; an employee or director restriction and exceptions must be checked.
Worked example
In 2025–26 an individual realises a £100,000 gain on qualifying shares. Assume all Investors’ Relief conditions are met, sufficient lifetime limit remains and no losses or annual exemption are allocated to the gain. Tax on the qualifying gain is £100,000 × 14% = £14,000.
Common mistake
Using the historic £10 million lifetime limit or assuming Business Asset Disposal Relief employment and ownership conditions automatically apply to Investors’ Relief.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |