How to make an Investors' Relief claim
It’s important to note that the claim for Investors’ Relief must be made to HMRC on your tax return by the first 31 January following the tax year in which the disposal took place. For example, for a business disposal that takes place in the 2020/21 year (i.e. a disposal made between 6 April 2020 and 5 April 2021), the deadline to make the claim is 31 January 2023.
The lifetime limit of £10 million for Investors’ Relief is separate to the lifetime limit of £1 million for BADR. Appreciating the similarities of the requirements of each relief and provided that the conditions for both are met, an individual that realises gains that exceed £10 million could potentially enjoy both reliefs on the same disposal.
One positive thing to take away from Investors’ Relief is that you do not have to hold a minimum 5% shareholding in order to qualify for relief. Thereby opening up the ability for a larger pool of investors to access the relief.