A warning on the new investors’ relief conditions on future gains

KEY POINTS

• Investors’ relief applies to gains arising after 5 April 2019 on shares issued on or after 17 March 2016.
• The employment restriction applies to ‘relevant employees’ only.
• There are some exclusions from the term ‘unremunerated’.
• The same shares can be eligible for investors’ relief and entrepreneurs’ relief.
• Low levels of remuneration can have a substantial adverse effect on eligibility to investors’ relief.

In ‘Gains from investment’ (Taxation 8 April 2016 )  I highlighted the key features of the then new investors’ relief introduced by Finance Bill 2016 and which is now in TCGA 1992 s 169VA to s 169VY. Legislative references in this article are to that act unless stated otherwise. Investors’ relief which applies only to gains arising after 5 April 2019...