Budget 2016 introduced a reduced rate of CGT of 20% which will apply in respect of a chargeable gain/s on a disposal/s of chargeable business assets made by an individual on or after 1 January 2016 up to a lifetime limit of €1million.
In respect of the disposal of qualifying shares, the individual must:
1. own at least 5% of the ordinary share capital of the Company
2. have been a full time working director for at least 3 years immediately prior to the disposal of the shares
3. the Company must be involved in a qualifying business which is a business other than
- the holding of securities or other assets as investments
- the holding of development land or
- the development or letting of land
In addition, an individual may qualify for relief on the disposal of chargeable business assets which have been used for the purpose of a qualifying business carried on by the individual for a minimum period of 3 years immediately prior to their disposal. Again, chargeable business assets do not include:
- shares referred to at (3) above.
- Development land or an interest in a business consisting of the development or letting of land or
- Assets on the disposal of which no gains accruing would be chargeable gains
If you require any further information on the above please contact us on 01-2804731
