InvestmentsMar 16 2016

Budget 2016: CGT cut for unlisted company investors

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Budget 2016: CGT cut for unlisted company investors

Capital Gains Tax cuts announced in today’s Budget will be further extended for investors buying into unlisted companies.

The government is to provide additional tax-relief on returns from unlisted holdings, should investors retain the position for three years.

The Treasury said it would extend “entrepreneurs’ relief” to long-term investors in unlisted companies. The relief will result in a 10 per cent rate of Capital Gains Tax on shares issued from unlisted firms purchased after tomorrow.

The shares must be held for three years to qualify, and investors’ overall relief will be capped at £10m of capital gains.

The extension of the relief came as the Chancellor George Osborne made huge cuts to the tax overall.

From tomorrow, Capital Gains Tax will be cut from 28 per cent to 20 per cent, with the basic rate cut from 18 per cent to 10 per cent.