Jackie Cahill
Question:146. Deputy Jackie Cahill asked the Minister for Finance the conditions of the revised capital gains tax entrepreneur relief; and if he will make a statement on the matter. [34347/21]
View answerTuesday, 29 June 2021
Questions (146)
Written answers
I am advised by Revenue that the revised capital gains tax (CGT) entrepreneur relief applies to an individual who disposes of qualifying assets, including shares in a qualifying company. Gains on such disposals are charged to CGT at the rate of 10%, subject to a lifetime limit of €1m. Gains in excess of this lifetime limit are subject to the standard rate of CGT, which is currently 33%.
For the relief to apply, the assets must be used for the purposes of a qualifying business carried on by the individual or the individual must own a shareholding of at least 5% in a company carrying on a qualifying business. A qualifying business 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. Business assets must have been owned by the individual for a continuous period of at least 3 years in the 5-year period immediately prior to the disposal. Where the individual disposes of shares in a qualifying company, the individual must have held the shares for a continuous period of 3 years at any time prior to the disposal. In addition, the individual must have been a director or employee of the qualifying company (or companies in a qualifying group) and have spent not less than 50% of his or her time in the service of the company or companies in a managerial or technical capacity for a continuous period of 3 years in the 5 years immediately prior to the disposal of the shares.
Further guidance on the operation of the CGT revised entrepreneur relief can be found in Tax and Duty Manual Part 19-06-02b, which may be accessed on Revenue's website.