What is entrepreneur relief ?
This useful relief gives a CGT rate of 10% on gains from the sale of a business or a trade. This is reduced from the normal rate of 33%
You must have owned the business assets for a continuous period of three years. The three years must be in the five years immediately prior to the disposal.
The business asset must be used for a qualifying business. For example it can’t be an investment company or developer of land etc
In the case of shares, you must have owned at least 5% of the ordinary shares for a continuous period of three years. The three year period can be at any time prior to the disposal.
You have must as director spend 50% of your time in management of the business being sold
Subject to other qualifying criteria
This is a very good relief for business owners both sole traders and companies who do not meet the retirement relief conditions of being over 55 years old or in business for more than 10 years
Any queries on the above give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie