CGT relief on employee ownership trusts

The measure

Individuals are currently eligible for 100% relief from capital gains tax on certain disposals of shares to an employee ownership trust. The Chancellor has announced that this rate of relief will reduce to 50%.  

It will not be possible to claim business asset disposal relief or investors’ relief on the 50% of the gain that remains taxable.   

Who will be affected?

Individuals who dispose of shares to an employee ownership trust and qualify for capital gains tax relief on the disposal.

When will the measure come into effect?

The change takes immediate effect, for disposals on or after 26 November 2025.