If you intend to transfer business assets to a family member be aware that you have a “window” between the ages of 55 and 65 during which to make the transfer without incurring a CGT liability.
One of the greatest concerns of business people is to be able to transfer their business to one or other of their children without incurring inordinate tax liabilities. Using a relief whose rules closely mirror the relief on qualifying assets transferred outside the family, full relief from CGT is available where an individual aged 55 or more transfers certain business or agricultural assets to a child or to a person that the tax legislation deems to have the same status as a child.
Once the business person reaches the age of 66 however the transfer will attract CGT if the value of the transferred assets exceeds €3m, with relief given as if the consideration for the transfer had been €3m. As the tax cost on transfers of this sort can be high, the advantage of making use of the tax “window” can be considerable.
To find out more about Family Retirement Relief, please arrange a consultation with one of our advisors.
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