Best Tax Breaks Often the Least Used

“Ireland has some particularly generous tax reliefs but when I meet new clients for the first time I get the impression that the best reliefs are the least used,” according to Dara Burke, tax director at McAvoy & Associates.

Speaking at a reception in the River Lee Hotel, Cork to launch McAvoy & Associates’ new publication, “21 Tax Tips for SMEs and their Shareholders”

Covering tax issues from the 10% Capital Gains tax rate that applies to disposals qualifying for Entrepreneur Relief to the relief available on stock options for key employees, the publication is designed to make SMEs and their directors aware that many are paying unnecessary amounts of tax.

She explained that she believed the reason for this was the undue priority that many businesses give to searching for tax breaks on income rather than focusing on ways of reducing tax on capital gains.

“Capital gains tax is charged at rates that vary between 0%, 10% and 33% whereas income is taxed at rates as high as 55%, so it makes more sense to plan to generate low-taxed gains as opposed to high-taxed income.

Moreover, most successful entrepreneurs put their success down to having a relentless focus on improving the value of their businesses rather than in extracting large amounts of income.”

Click the link to the Irish Examiner article

Copyright © 2020 McAvoy & Associates, All rights reserved.


Joe McAvoy

Director

Tax Services

Call: +353 21 432 1321

View Profile

Dara Burke

Director

Tax Services

Call: +353 21 432 1321

View Profile

Shane Carroll

Director

Business Advisory

Call: +353 21 432 1321

View Profile


Related Articles
BUDGET 2020: A BUDGET FOR UNPRECEDENTED TIMES

“The economy is poised at a point between the twin risks of overheating and Brexit.” Anyone wanting to understand the thrust of Paschal Donohoe’s Budget needs only to re-read the ...Continue Reading

Tax Tip: CAT reduction

If you can’t avoid a CGT charge on a transfer of an asset to a family member, don’t despair. The person to whom you transfer the asset may claim a ...Continue Reading

Tax Tip: 10% CGT

If you are disposing of either shares in a trading company or the assets of an unincorporated business look to avail of Entrepreneur Relief. By using it the first €1m ...Continue Reading

Tax Tip: Tax Exempt Gains

If you or your company are holding land and buildings acquired between 7 December 2011 and 31 December 2014 gains from their disposal may be free of Capital Gains Tax. ...Continue Reading

Tax Tip: Incorporation

If you are carrying on business as an unincorporated entity consider transferring your business to a company to avail of the low 12.5% corporate tax rate. Given Ireland’s favourable tax ...Continue Reading

Tax Tip: Tax Free Gains

Have your company use the Participation Exemption to generate tax-free gains from the sale of shares that it owns in trading companies. Gains made on the disposal of certain shares are ...Continue Reading