Capital Acquisitions Tax Consolidation Act 2003 section 101

Withdrawal of relief

Section 101 provides for the clawback of business relief where relevant business property ceases to qualify or is disposed of within six years of the valuation date of the gift or inheritance.

• Business relief is clawed back if, at any time within six years of the valuation date, the property (or its replacement) ceases to be relevant business property or is sold without full reinvestment in qualifying replacement property within one year.
• Where business property is replaced with property of lesser value, the relief is reduced proportionately — in the same ratio that the replacement property's market value bears to the original property's market value.
• No clawback arises where the beneficiary dies before the triggering event, or where land, buildings, machinery or plant continue to be used for the purposes of the business concerned.
• The transfer of relevant business property from a transferor company to a successor company as a result of a merger or division under Part 9 of the Companies Act 2014 does not trigger a clawback.