Retirement Tax Relief – Reduce Capital Gains Tax
At some point you will have to make a plan to exit from the business, be that a full or partial business sale or a sale of your farm assets. Capital gains tax Retirement Relief / also known as CGT Retirement Relief applies with the sale or transfer of assets or shares by people over 55 years of age subject to Revenue’s qualifying conditions. You do not have to actually retire to benefit from Retirement Relief. Self employed sole traders, company Directors, and farmers can benefit from Retirement Relief with category specific qualifying criteria. Other types of business owners may also qualify – for instance; partners in a partnership.
Retirement Relief For a Company Director Selling A Business
Benefit from CGT Retirement Relief on the sale of a business by a company Director.
Capital Gains Tax Retirement Relief Qualifying Conditions
Capital Gains Tax (CGT) Retirement Relief has a number of qualifying criteria set down by Revenue. The following list is not exhaustive and is subject to change as per Revenue:
Age Requirement For Retirement Relief: 55 and upwards.
Ownership Period: Ten Years Minimum.
Active: Must have been active in the business or farm activities.
Selling Your Business or Farm Assets
Whether you wish to sell your business / farm assets on the open market or to your offspring there are many items to consider.
Applying For Retirement Relief
Qualify For Retirement Relief?
Assess if your situation (sole trader / business director etc.) is eligible under Revenue’s criteria. You may be required to submit accounts, and other business documentation etc.
Business Valuation For Retirement Relief
Obtain a market value business appraisal – this is a professional valuation of the business / asset valuation report to determine market value. It is important that the valuation is undertaken by a suitably qualified person with experience in doing such valuations. Revenue may also challenge valuations, so having a professionally undertaken valuation will also help with any potential future queries by Revenue.
Submit an application for Retirement Relief to the Revenue Commissioners via relevant forms and provide supporting information such as valuation report, proof of ownership and evidence of active involvement in the business.
File a return by Oct 31st of the year following business asset disposal.
HTH Accountants are experts on business valuations and have access to a pool of potential buyers of your business if you are looking to sell the business to retire etc. To discuss the best approach for your circumstances please get in touch for a confidential discussion.
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Ph: +353 (0)1 5411446
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Kieran Horgan: Kieran Horgan
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Kevin Devane: Kevin Devane
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