Entrepreneur Relief – Tax Relief For Entrepreneurs

Entrepreneur Relief, now called by Revenue as ‘Revised Entrepreneur Relief, can provide for a reduced Capital Gains Tax rate of 10% from the disposal of qualifying business assets. If you wish to learn more re: CGT in relation to selling your business, or the CGT payable on selling business assets, please get in touch. HTH Accountants are happy to work with you to determine the most appropriate path and can provide you with a list of Tax Consultants who can provide you with detailed tax advice on entrepreneur relief if required.  HTH Accountants are a team of qualified accountants experienced in carrying our business valuations which you may need to help you with selling your business and availing of Entrepreneur Relief.

Capital Gains Tax Rates
The normal CGT rate is 33% so it is important to identify if you can qualify for a substantially lower CGT when selling your business. This way you may only have to  pay 10% tax on gains (as opposed to 33%  up to €1mn in gains if you qualify.

Entrepreneurs can benefit from Entrepreneur Relief gains up to €1 million over their lifetime and unlike Retirement Relief, can avail of this relief at any time in their lives.

Capital Gains Tax on Selling Business Assets
If you are looking to sell business assets, the gains made on these assets are subject to CGT in Ireland.

Should you qualify for entrepreneur relief, you can greatly reduce your tax liability from the sale of your business.

There are exceptions and certain conditions set out by the Revenue Commissioners on who would qualify for Entrepreneur Relief.

The relief does not apply to disposals of:

  • shares (other than shares that qualify for relief under this section), securities or other  assets held as investments
  • development land
  • assets on the disposal of which no chargeable gain would arise
  • assets personally owned outside a company, even where such assets are used by the company
  • goodwill which is disposed of to a connected company
  • shares or securities in a company where the individual remains connected with the company following the disposal.

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Kieran Horgan: Kieran Horgan
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