Taxation of Chargeable Gains Act 1992 section 169VC

Investors' relief

Section 169VC provides for a reduced rate of capital gains tax on disposals of qualifying shares by individuals or trustees, subject to certain conditions and a lifetime cap.

• When an individual or trustees of a settlement dispose of qualifying shares in a company, the gain may be taxed at a reduced rate of 14% instead of the normal CGT rates, provided a claim is made.
• If only some of the shares in the holding are qualifying shares, only the proportionate part of the gain attributable to those qualifying shares benefits from the reduced rate.
• The gain eligible for the reduced rate is calculated after deducting any allowable losses, and the total amount of gain qualifying for investors' relief is subject to a lifetime cap.
• Additional conditions and potential reductions apply where the disposal is made by trustees of a settlement rather than by an individual.