The Budget has proposed a new CGT relief for investors in unquoted companies, but Rebecca Cave asks: Do we really need another CGT relief?
In the Budget on 16 March 2016 the Chancellor proposed yet another capital gains tax relief for gains on the disposal of shares – a new version of entrepreneurs’ relief for long-term investors. In my book on CGT reliefs for small businesses I cover 22 different CGT reliefs, and six of those can apply on the disposal of shares in unquoted companies:
- Enterprise investment scheme (EIS)
- Seed enterprise investment scheme (SEIS)
- Social investment tax relief (SITR)
- Transfer to employee ownership trust (EOT)
- Employee shareholder status shares (ESS)
- Entrepreneurs’ relief (ER)
So how is the new ER Investor relief different to the current ER and to the existing venture capital reliefs?