Disposal of a business or farm to your child

If dispose all or part of your business or farming assets to your child, you may be entitled to relief from CGT.

Your child in this case can include:

• A child of your deceased child
• A niece or nephew who worked full-time in the business or farm for at least 5 years
• A foster child whom you maintained for at least 5 years

The amount of relief depends on your age at the time of disposal:

• Up to 31 December 2013, you may claim full relief if you're 55 or older
• From 1 January 2014, you may claim full relief if you're between 55 and 65
• If you're 66 or older the relief is restricted to €3 million

If your child disposes of the asset within 6 years, relief will be withdrawn and your child must pay CGT on the original disposal by you, in addition to the CGT on their own disposal.

You need a CG50A (CGT Clearance Certificate) certificate if:

• You sell an asset on or after 25 March 2002 for over €500,000
• You sell a house or apartment on or after 1 January 2016 for over €1 million

The buyer is obliged to withhold 15% of the purchase price from you if you don't have a CG50A Form. The buyer will then give you a Form CG50B. This will allow you to reclaim the amount withheld by them from Revenue at a later date.

You can apply for a CG50A using a Form CG50 and you must meet at least 1 of the following criteria:

• Be resident in the country
• Have paid CGT on the disposal, if it's due

Alternatively, you can use the following Tax Clearance Certificates:

• A current Tax Clearance Certificate
• A certificate of authorisation (C2 cert)
• A Tax Clearance Certificate issued specifically for the purpose of Section 980, Taxes Consolidation Act 1997