If you are disposing of a business or a farm to someone other than your child and you are 55 or older, you may be eligible to claim CGT relief when you dispose of any part of your business or farming assets. This is referred to as retirement relief but you do not have to retire in order to qualify.
There are certain circumstances in which you may qualify for this relief before you are 55. They are as follows:
- You are unable to continue farming due to ill health.
- You reach the age of 55 within 12 months of the disposal.
- For disposals made up to and including 31 December 2013, you're eligible to claim full relief when the market value at the time of disposal does not exceed €750,000.
- This threshold may be reduced to €500,000 if both of the following are applicable;
- The disposal takes place on or after 1 January 2014
AND
You are 66 or older.
If the market value is more than the above defined threshold, marginal relief may apply. This will limit the CGT to half the difference between the market value and the threshold.
The €750,000 (€500,000 after 1 January 2014 for those aged 66 or older) is a lifetime limit. If you exceed this threshold, relief given on earlier disposals will be withdrawn.
Comments (0 comments)