TAX TIP OF THE WEEK - Investors Relief

Want to invest some spare cash without taking huge risks and avoiding being hit with a big tax bill on the returns. Perhaps ‘Investors Relief’ could be the the answer.

There are various government-approved relief schemes which encourage investment, including BADR and EIS/SEIS.

However, these tend to either have restrictions to particular circumstances or can be considered high risk.

‘Investors Relief’ can fill this gap by allowing a low 10% tax on any gains without the restriction of BADR.

Although there are a few conditions such as you must own any shares for 3 years & not be an officer of the company, the benefit is that there is no minimum holding required and there is a very generous £10m limit.

So for those investors that may not qualify for BADR and find EIS/SEIS too risky, ‘Investor Relief’ can be a great way to reduce CGT.

I hope this was helpful, for lots more tax tips and strategies get a copy of our 71 ways to save tax checklist.