Retirement Relief - Capital Gains Tax

Sections 598 and TCA 1997 provide for relief from capital gains tax where an individual disposes of his or her ‘qualifying assets’. The relief applies only to individuals who are 55 years and over at the time of disposal.

Where an individual disposes of ‘qualifying assets’ before his/her 55th birthday the Revenue Commissioners will consider claims for relief where all the following conditions are present.

• The claimant is, due to severe or chronic ill health, unable to continue farming, or in his/her trade, profession office or employment or as a working director in a relevant company
• On cessation the claimant disposes of ‘qualifying assets’ - at the time of disposal the conditions for relief, other than the age requirement, are satisfied
• At the time of disposal the claimant is within 12 months of his/her 55th birthday

An individual claiming retirement relief on these grounds should provide medical evidence of the illness and outline the circumstances in which the relief is being claimed. This applies to disposals occurring on or after 14 May 2004.

Enquires on this article should be addressed to miccroke@revenue.ie