Capital Gains Tax

CGT & Entrepreneur Relief - Selling a Business in Ireland

There’s lots of considerations when it comes to Capital Gains Tax on Disposal of your business.  Entrepreneur Relief could be a great way to minimise your tax bill on selling your business. 

Tax on Disposal of Your Business

In Ireland, the CGT (Capital Gains Tax) rate is 33% for most gains including for the gain on selling your business. In some instances however, there are different rates for specific gains. It is also worth noting, that there are costs that can be deducted from the sale price of your business to calculate chargeable gains. To calculate CGT, you will also need to work out your taxable gain, which is done by deducting any personal exemptions, any other exemptions or reliefs due, and allowable losses. Once you have worked out your total taxable gain for a tax year, this number is then multiplied by the rate of CGT. 

Entrepreneur Relief or Entrepreneurial Relief In Ireland

One way to minimise your CGT liability on selling your business is availing of Entrepreneur Relief or Entrepreneurial Relief which gives a CGT rate of 10% on gains from the disposal of qualifying business assets.  There are terms and conditions you must meet in order to qualify for entrepreneur relief.  The lifetime limit on the gains you can claim relief on in Ireland is €1million (The limit is a lot higher in the UK).

If you’re seeking advice on how to calculate CGT or see if you would qualify for Entrepreneur Relief, then please contact us here. Go For Brokers has a shortlist of independent third party accountants / tax consultants, who you can contact to see if they are suitable for your specific CGT needs.