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Commentary

C3.1322 Investors' relief—disposal by trustees

Capital gains tax

As highlighted in C3.1320, investors' relief is available on disposals by individuals or trustees. For relief to be available on a disposal by trustees there must be at least one individual who is an eligible beneficiary in respect of the disposal1.

Eligible beneficiary

An individual is an eligible beneficiary if:

  1. Ìý

    •ÌýÌýÌýÌý he has an interest in possession (other than for a fixed term) in settled property that includes the holding of shares immediately before the disposal

  2. Ìý

    •ÌýÌýÌýÌý he has had such an interest throughout the three years ending on the date of the disposal

  3. Ìý

    •ÌýÌýÌýÌý he has not been a relevant employee (see C3.1323) in respect of the company at any time in that three-year period, and

  4. Ìý

    •ÌýÌýÌýÌý he has elected to the trustees, by the time of the claim for relief, to be treated as an eligible beneficiary

An individual has so elected if he tells the trustees, by whatever means, that he wishes to be treated as an eligible beneficiary. The election can

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Web page updated on 17 Mar 2025 17:09