Retirement Relief: Capital Gains Tax Savings for Business Sellers
If you’re an Irish business owner over the age of 55 and thinking about selling your business, Retirement Relief could be a game changer. It’s a generous Capital Gains Tax (CGT) exemption that allows qualifying owners to sell their business completely tax-free—or at a significantly reduced rate.
What is Retirement Relief?
Retirement Relief is a tax incentive that allows business owners to sell or transfer qualifying business assets without paying CGT, provided certain age and ownership criteria are met.
Who Qualifies?
You must be aged 55 or older
You must have owned the business for at least 10 years
You must be actively involved in running the business
What Are the Limits?
If selling to a child, there’s no limit on the sale value (until age 66)
If selling to someone else, you can claim full relief up to €750,000 in lifetime gains (€500,000 if you’re over 66)
Example:
You sell your business for €700,000 at age 60. If eligible, you could pay €0 CGT instead of up to €231,000 under normal tax rules.
How Coolstown Capital Helps:
We structure deals in a way that protects your Retirement Relief eligibility. If you’re nearing retirement and want a tax-efficient exit, we can guide you through the entire process.
