Maximise Tax Reliefs on Transferring the Family Business before they Change

Retirement Relief can provide for an exemption from capital gains tax (CGT)  on the transfer by a parent aged 55 and over of the family business to their children.  For 2024, there can be a full exemption from CGT where the parent is aged between 55 to 65.  Where the parent is aged 66 and over the relief is capped at €3,000,000.

From 1 January 2025 the relief will be amended as follows:

  • A new €10,000,000 limit will apply to all transfers by a parent aged 55 to 69 to their children.
  • The €3,000,000 cap will begin to apply from age 70.

These changes are very significant as from next year a parent aged 55 and over will no longer be able to claim full retirement relief on a transfer of qualifying assets to their children if the market value of the qualifying assets exceeds €10,000,000.  Therefore, if a transfer of a family business is being considered it may be prudent to take action this year.

Purcell McQuillan are very experienced in advising on the transfer of a family business and how to avail of retirement relief from capital gains tax and business property relief from gift tax.

This summary is intended as a general guide. No action should be taken without obtaining professional taxation advice. If you require any advice on the above, please do not hesitate to contact Purcell McQuillan Tax Partners Ltd on 01 668 2700 Jane O’Hanlon or Brian Purcell.

Jane O'Hanlon

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