Passing assets and wealth to the next generation requires careful planning. When considering such a scenario there are a range of complex tax issues including Capital Gains Tax, Stamp Duty & Capital Acquisitions Tax (Inheritance/Gift Tax). Our focus is to maximise all available reliefs and to provide support on an ongoing basis.
- Retirement Relief: Despite it’s name, this relief actually has nothing to do with retirement or any such requirement. This is a major relief in the passing of a business to the next generation, where Capital Gains Tax which would normally be chargeable on such a transfer or sale. Although recent legislation has restricted this relief, it remains a significant benefit for those who wish to transfer business assets to the next generation. This relief is also applicable to those who wish to sell their business to a third party and can satisfy the requirements of the legislation.
- Business Relief: Individual in receipt of business assets would normally be chargeable to Capital Acquisitions Tax (for gifts & inheritances). Business Relief can reduce the exposure of Capital Acquisitions Tax by 90%.
- Agricultural Relief: Like Business Relief, Agricultural Relief can mitigate the Capital Acquisitions Tax exposure by 90% on the transfer of agricultural assets.
Please see http://www.bjdennehy.ie/capital-acquisitions-tax-business-relief/ for further details on this area.