Capital Acquisitions Tax Consolidation Act 2003 section 95

Replacements

Section 95 sets out the conditions under which replacement business property can qualify for business property relief, and limits the amount of relief available where the replacement property is more valuable than the property it replaced.

• Where business property has been replaced by other business property, the combined ownership periods of both properties are aggregated to meet the minimum ownership requirement: 2 out of 3 years for inheritances on death, or 5 out of 6 years for gifts and other inheritances.
• The replaced property must itself have qualified as relevant business property (ignoring the minimum ownership period in section 94) at the time it was replaced.
• Where the replacement property is worth more than the property it replaced, relief is capped at the amount that would have applied had no replacement been made.
• Changes arising from partnership formations, alterations or dissolutions, or from the acquisition of a business by a company controlled by the former owner, are disregarded when applying the relief cap.