Ireland Consults On Capital Gains Tax Relief Review

10/06/2019

The Irish Finance Department has launched a consultation on potential changes to the capital gains tax revised entrepreneur relief.

The relief was introduced in Budget 2016 and provided for a rate of 20 percent to be applied to chargeable gains arising on the disposal by an individual of business assets up to a lifetime limit of EUR1m. The rate was cut to 10 percent in Budget 2017. Ireland's headline rate of CGT is 33 percent.

The Government has appointed Indecon international economic consultants to undertake a review of the relief. As part of the process, a public consultation will run until July 5.

The review will consider whether the relief is relevant and how much it costs as a tax expenditure. It will assess the impact of the relief and compare it against the UK's Entrepreneur Relief scheme.

The review is intended to improve the environment for entrepreneurs and business people setting up or carrying on productive business activities in Ireland.

Source: Pride Partners International