Capital Gains Tax
Retirement Relief
Retirement relief on the disposal of qualifying businesses and farms is amended for individuals aged 66 or over by reducing the threshold of €750,000 to €500,000 on disposals outside of the family. The €750,000 threshold will continue to apply as a transitional measure for a period of two years for individuals currently aged 66 or who reach that age before 31 December 2013.
An upper limit of €3 million is introduced on retirement relief for businesses and farms disposed of within the family by individuals aged 66 or over. A transitional arrangement is also in place whereby the €3 million limit will not apply for two years for individuals currently aged 66 or who reach that age before 31 December 2013.
CGT Property Incentive
A new incentive relief from CGT will apply to exempt gains arising from disposals of land and buildings bought between 7 December 2011 and the 31 December 2013 where the property is held for more than 7 years. The exemption applies to land and buildings located in the EU and EEA and is time apportioned by reference to the qualifying 7 year period over the total period of ownership.