In 2010, when he was 56, James sold part of his business for €670,000. He qualified for full relief because he was over 55 and the sale price is under the threshold of €750,000.
In 2019, aged 65, James sells the remaining part of his business for €220,000. The total sale price is €890,000.
The total amount received by James for sale the business is €890,000. This is over the €750,000 threshold. James must now pay CGT on the total gain.
The CGT due would work out as €90,000, but he can claim marginal relief. His CGT is limited to half the difference between the total amount received and the threshold.
Marginal relief – CGT limit
|Total amount received
||€670,000 + €220,000
|CGT limit (half excess)
As James qualified for marginal relief his CGT due is €70,000 (not €90,000).
James pays his CGT before 15 December 2019, and files his CGT return before 31 October 2020.