Budget 2019: Entrepreneurs seek improvement in tax relief to support investment in Irish economy
With Brexit, international market and general economic risks looming the role of the Irish entrepreneur is more important than ever to maintain Ireland's economy. As Irish entrepreneurs invest the economy grows, employment numbers are maintained and increased, and the driver of Irish economic activity is diversified to compliment multinational investors. When entrepreneurs invest they take commercial risk motivated in part by the financial reward that follows business success. The Irish CGT rate is 33% and such a high CGT rate can discourage investment by entrepreneurs.
The special entrepreneurs CGT rateThe special entrepreneurs CGT rate of 10% partly addresses this but has two key downsides:
- It is limited to gains of €1M.
- The full time working requirement means that entrepreneurs can generally only qualify in one business even if they invest in many businesses.