Two letters are being sent to taxpayers who have claimed investors’ relief for 2022/23. In the first letter, HMRC asks the taxpayer to check that they meet the conditions for claiming investors’ relief. If the claim is incorrect, the taxpayer should amend their return. No action is required where the taxpayer believes that the claim is correct.  

Investors’ relief is a capital gains tax (CGT) relief available on the disposal of shares where certain conditions are met. CGT is charged on qualifying gains at the rate of 10%. 

In the second letter, HMRC informs the taxpayer that they have not provided enough information in their return about the claim. This means that HMRC cannot accept the claim. The person may need to pay additional CGT on the disposal. The taxpayer should either amend their return and remove the claim or contact HMRC to provide more information about the disposal. The letter sets out the information required by HMRC.  

If required to do so, the taxpayer should act within 30 days of the date of the letter. HMRC will charge interest on any tax paid late. It may also charge a penalty depending on the circumstances.    

The letters provide guidance on the conditions for claiming investors’ relief and details for contacting HMRC.  

Further information 

• Example letter asking the taxpayer to check their claim 
• Example letter asking the taxpayer to provide more information
• HMRC helpsheet investors' relief (HS308)