Following the introduction of a revised entrepreneur relief in Finance Act 2015 for entrepreneurs disposing of certain business assets, Revenue has published updated guidelines. The relief allows entrepreneurs to apply a CGT rate of 20% on chargeable gains arising on the disposal of certain business assets from 1 January 2016 up to a lifetime limit of €1 million.

Practitioners and taxpayers may have difficulty with certain aspects of the guidance. For example, the relief does not apply to assets personally owned outside a company even where the assets are used by the company and holding investment assets in a company can result in relief being denied. The Institute, via the Tax Administration Liaison Committee (TALC) forum continue to engage with Revenue on aspects of the relief and will update members accordingly.

Revenue eBrief No. 83/16 on here provides more details and the Revenue Tax and Duty Manual has been updated. The relevant legislation can be found in section 597AA TCA 1997.