Thinking of Selling your Business or passing it to the next generation?  Talk to an expert in Cooney Carey about the possible application of Retirement Relief.   What is Retirement Relief? Put simply it is a relief from the standard Capital Gains Tax (CGT) rate that would apply on the sale of a business. As highlighted below it can apply to individuals disposing of certain business assets to third parties or to transfers within the family. Nature of the relief Once the conditions are met the relief provides that a certain amount can be received tax free on the disposal of qualifying business assets. Relief from CGT is capped at the following amounts depending on the age of the business owner and the relationship to the transferee:

• Aged 55 to 66 and disposing to a qualifying child – No Limit
• Aged over 66 and disposing to a qualifying child – capped at €3 million
• Aged 55 to 66 and disposing to someone other than a child – capped at €750,000
• Aged over 66 and disposing to someone other than a child – capped at €500,000

Marginal Relief may apply in some instances where the sale proceeds exceed these amounts. Availability of the relief – Chargeable Business Assets The assets must be chargeable business assets which include not only assets used directly in the business but also shares in a family company carrying on a business. In the case of shares the individual must generally hold at least 25% of the issued share capital of the company although smaller holdings of 10% or more will also qualify in the case where between them family members own at least 75% of the shares in a company The following are not regarded as chargeable business assets excludes:

• the holding of shares, securities or other assets held as investments;
• the holding of development land or letting of land; and

Conditions to the relief Key conditions include the following:

• The owner must have reached their 55th birthday at the time of disposal.
• Assets disposed of must be chargeable business assets
• Owner must have owned the relevant assets for at least 10 years
• If shares, the company must be a qualifying family company.
• You do not actually have to be retiring to avail of this relief.
• There are claw back and aggregation provisions that require consideration.

NEXT STEPS

• For expert insight and analysis that is relevant to your own situation talk to Cooney Carey.

• We can create a bespoke tax plan to assist you in meeting your commercial objectives in a tax efficient manner.

• Maximise return – Minimise Tax leakage!