We understand that the passing of a family business is a sensitive and crucially important decision for any family without trying to navigate the bewildering tax implications. Retirement Relief is a well known relief which allows business owners to reduce or eradicate their CGT charge where the disponers have reached the age of 55 years old.

Disposals to children:

At present the transfers to children are limitless where the disponer is below the age of 66 however once they reach 66 years old the relief is capped at €3million.

The most recent Finance Act 2023 included the following changes effective from 1 January 2025:

  • A limit of €10 million will apply to the value of business assets that owners aged between 55 – 69 years old may pass free from CGT to their children.
  • A €3million cap now applies from the ages 70 onwards.

What actions should I take?

As these changes are set to take effect from 1 January 2025 now is the time for tax planning to ensure you achieve the most tax efficient option. 

Should you wish to discuss this subject in more detail with our Tax Team please contact us on <info@dbass or 01 849 88 00> and we will be happy to help.