Tx notes fa22 Final

Calculate Anne’s capital gains tax for 2022/23 and state the due date for payment. 

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3. Investors’ Relief 
Investors relief e
ff
ectively extends BAD Relief to external investors in trading companies which are 
not listed on the stock exchange - i.e. unquoted companies.
However, investors relief has its own separate 
£10M lifetime limit
and qualifying gains are 
taxed at 
10%.
Qualifying shares must:
๏
Have been subscribed for by the individual on or after 17 March 2016 in an unquoted trading 
company and held for a minimum period of 3 years from 6 April 2016.
๏
Unlike business asset disposal there is no minimum level of shareholding required and the 
shareholder must not have been an employee or director of the company (other than an unpaid 
director).
Example 3 
On 20 October 2022 Ashley sold 30,000 shares in Toon Ltd an unquoted trading company, for 
£375,000 net of selling expenses of £10,000. 
Toon Ltd has in issue one million £1 ordinary shares that had been subscribed for at par by the 
existing shareholders on 1 September 2017. Ashley had subscribed for 40,000 shares but has never 
worked in Toon Ltd.
In 2022/23 Ashley had taxable income of £60,000 and had made other asset disposals giving rise to 
chargeable gains of £7,000.
Compute the CGT liability for Ashley on the disposal of the Toon Ltd shares in 2022/23.



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