However, that figure supposes that the relief scheme has zero effect in encouraging entrepreneurship and that individuals who had worked hard to create wealth would not look to reduce their tax bills.
The Resolution Foundation maintains this tax break is enough to give £100 per year to every household in the country if it is abolished.
Roughly 52,000 individuals benefited from the tax break in 2015–16, but the chief financial gain was for a few people, with about 6,000 claiming over £1m each.
[8] The 2016 Budget introduced Investor's Relief, which extends the relief to external investors in unlisted trading companies: they can benefit from a 10% CGT rate on disposal of their shares, subject to a minimum holding period of three years and a lifetime gains limit of £10 million.
The relief was intended to improve unlisted companies' access to capital, but a 2020 report by the Office of Tax Simplification found it had seen little use and recommended its abolition.