Introduction Guided Tour Customer Services What is CGT?

Business Assets

Before 6th April 2000, all listed stocks on the LSE were classified as non-business assets. However, now that all AIM and OFEX stocks count as business assets, private investors can benefit from significant CGT relief. You can also benefit if you have a shareholding as an employee in a quoted company.

Business assets are allowed 12.5% CGT relief after 1 year, 25% after 2 years, 50% after 3 years, and 75% after 4years. This level of relief compares very favourably with the standard relief where no relief is given for less than 3 years, (except for existing holdings on 6th April 1998 where special rules apply).

If a company moves its quote from the AIM market to the main market it ceases to be a business asset from that date, and the tax relief is apportioned by the periods of qualifying as a business and non-business asset.

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