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Capital gains tax relief to be halved from November 2025
In the Autumn Budget 2025, the Chancellor announced significant changes to the capital gains tax (CGT) relief available on qualifying disposals of shares to employee ownership trusts (EOTs).
From 26 November 2025, the current 100% CGT relief will be reduced to 50%, meaning sellers will now pay tax on half of their gain when transferring ownership to an EOT.
Under current rules, individuals who sell shares to the trustees of an EOT can claim full relief from CGT, provided all statutory conditions are met. This enables a tax-free transfer where 100% of the gain is relieved.
From 26 November 2025, the relief will be restricted as follows:
- 50% of the gain will be treated as the seller’s chargeable gain for CGT purposes
- the remaining 50% will be held over, reducing the trustees’ acquisition cost. This deferred gain will come into charge if the trustees later dispose of the shares.
Business Asset Disposal Relief and Investors’ Relief will not be available where EOT relief is claimed.
The changes apply to all qualifying disposals made on or after 26 November 2025.