Revenue eBrief No. 327/24

17 December 2024

Retirement Relief - Disposals within family of business or farm

Tax and Duty Manual Part 19-06-03b provides guidance in respect of section 599 of the Taxes Consolidation Act 1997 (‘TCA 1997’), which provides for relief from Capital Gains Tax (‘CGT’) on the transfer by an individual, who has attained 55 years of age, of certain business or agricultural assets where such transfer is to a “child”, as defined in the section.

The guidance has been updated to reflect the following amendments made to section 599 TCA 1997 in Finance Act 2024:

• Firstly, to provide for an option for an individual to defer the CGT liability arising on a “relevant disposal”, made on or after 1 January 2025. A “relevant disposal” means a disposal of qualifying assets, as referred to in section 599(1)(b)(v) TCA 1997, being a disposal in respect of which CGT is chargeable, as the value of the assets exceed the €10 million limit on relief granted under section 599 TCA 1997.
• Secondly, to provide for a general anti-avoidance provision in respect of relief granted on transfers of qualifying assets from an individual to a child, and the potential deferral of CGT arising in respect of such transfers.

The guidance has also been amended to provide new and updated examples and information on the operation of the relief, as well as a restructuring of the content for ease of reference.