We welcomed the Government’s announcement in the Budget that Capital Gains Tax Entrepreneurs’ Relief is to be extended to external investors in unlisted trading companies for newly issued shares purchased on or after 17 March 2016. This is significant in encouraging investment in smaller companies, including those on AIM and ISDX.
We have been campaigning over the past five years for a fundamental change in Entrepreneurs’ Relief and we are pleased to see that the Government has taken on board one very important part of our demands.
Investors who choose to invest over a period of years in small and mid-size quoted companies make a valuable contribution by providing the stable financial base necessary to promote growth. The announced measure will provide a clear reward for investors who take on a higher risk when supporting growth companies.
Our future proposals for taxation reform will continue to highlight the importance of further encouraging wider share ownership and continue to campaign to see this extended also to employees who own less than 5% of a company. Click here to see our press release.