Taxes Consolidation Act 1997 section 600M

Relief

Section 600M provides a reduced rate of capital gains tax on gains arising from the disposal of a qualifying investment by a qualifying investor in a qualifying company.

• A qualifying investor who disposes of a qualifying investment in a qualifying company may claim CGT relief, but relief is not available where the disposal is a redemption, repayment or repurchase of shares by the company or a part disposal of shares.
• The gain eligible for the reduced rate is the lowest of the actual chargeable gain, twice the amount of the qualifying investment in the eligible shares disposed of, or the balance of a €3,000,000 lifetime threshold.
• The effective reduced CGT rate is 16 per cent for individual investors (or 18 per cent for investments made through qualifying partnerships), and where multiple disposals are made in a year, relief is applied to earlier disposals before later ones.
• The relief is claimed on the investor's income tax return, which must include details such as the qualifying company's name and address, the investment date, the value and number of shares subscribed for, and the certificate of commercial innovation identification number assigned by Revenue.