Capital acquisitions tax and the valuable business relief

I wrote yesterday about agricultural relief and the utility of this relief to allow a parent pass significant wealth to a child with stunning tax efficiency.

Another valuable relief is business relief.

Business relief can provide a 90% reduction in the value of the business being transferred to beneficiaries.

Some types of business are excluded-for example, businesses dealing in currencies, securities, stocks, shares, land, buildings or making and holding investments.

The business relief exemption will only apply to relevant business property and the business must be transferred, not individual assets of the business.

To qualify for the relief the disponer must have been the owner of the business for 2 years prior to the death of the disponer on an inheritance or 5 years prior to the granting of a gift.

Learn more about capital acquisitions tax in Ireland here.