Taxes Consolidation Act 1997 section 598

Disposals of business or farm on "retirement"

Section 598 provides relief from capital gains tax where an individual aged 55 or over disposes of qualifying business or farming assets to persons outside the family, with the level of relief depending on the individual's age and the amount of the disposal proceeds.

• Full CGT relief applies where disposal proceeds do not exceed €750,000 (or €500,000 for individuals aged 70 or over from 1 January 2025), with marginal relief available above these thresholds limiting tax to half the excess over the threshold.
• Qualifying assets include business assets owned and used in a trade, profession or farming for at least 10 years, shares in a family trading or farming company where the individual has been a working director for at least 10 years (including at least 5 years full-time), and certain let farmland.
• The relief thresholds are lifetime limits that aggregate the consideration for all qualifying disposals made after age 55, and earlier relief may be clawed back if subsequent disposals cause the aggregate to exceed the threshold.
• Relief must be claimed in the individual's tax return for the year of disposal and only applies where the disposal is made for genuine commercial reasons without tax avoidance as a main purpose.

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