Investors’ relief is a new tax incentive applying from 17 March 2016 to investments made in unquoted companies.
To qualify, a person must subscribe for ordinary shares in a trading company or group, and must hold on to the shares for at least three years.
If the relevant conditions are satisfied, the shares can be sold with any capital gains being taxed at the rate of 10% (see September’s edition of Tax Insider).
Satwaki Chanda outlines one of the pitfalls arising from the new investors’ relief, which was introduced in last year’s Finance Act.
It is a sample article from our popular Tax Insider newsletter but you can read it right here:
>> Investors’ Relief: The Employee/Officer Trap
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