Capital Acquisition Tax Business Relief

If you inherit or receive a gift of business property, you may qualify for Business Relief. Business relief is granted on the transfer of relevant business property.

The relief applies to:

• The transfer of a business
  or
• A share in a business
  or
• The shares or securities of a company carrying on a business.

The relief does not apply to individual assets, even if those assets were used in the business.

Business Relief reduces the taxable value of the business property which Capital Acquisitions Tax (CAT) is calculated on by 90%. This is subject to conditions.

A business is an activity, such as a trade, profession or vocation which is carried on for gain.

Agricultural property which does not qualify for Agricultural Relief may qualify for Business Relief.

What are the conditions for Business Relief?

You may qualify for Business Relief if you receive a gift or inheritance of a business, where:

• the business qualifies as relevant business property
  
• the business has been carried on for the purpose of a gain for a certain minimum period of time before the date of the gift or inheritance
• you retain ownership of the property for a minimum period of time after the date of the gift or inheritance.