UK Treasury Proposes $13 Million Capital Gains Tax Relief for Startup Founders

The UK government has initiated a technical consultation regarding the implementation of a new Capital Gains Tax (CGT) relief for founders and early-stage investors in high-growth, innovative companies. The proposed policy aims to apply a 10% CGT rate to qualifying share disposals, capped at a lifetime limit of approximately $13 million in gains per individual.

This consultation focuses on defining the specific criteria for individual eligibility, company classification, and innovation benchmarks. It also addresses the administrative and compliance frameworks required to prevent tax leakage and ensure the policy aligns with broader economic growth objectives.

Feedback gathered during this period will inform the final design of the relief, which is scheduled for inclusion in the 2026/27 Finance Bill. If enacted, the measure will apply to qualifying disposals occurring on or after April 6, 2027. The consultation period remains open until November 30, 2026.