When business assets are disposed of, either through sale, gift or inheritance, a number of different tax charges may arise.
• A Capital Gains Tax (CGT) charge may be incurred by the person disposing of the assets, even if the assets are
being given as a gift. The current CGT rate is 33%.
• A Capital Acquisitions Tax (CAT) charge may be incurred by the recipient of the gift or inheritance or where the sale
price is below market value. The current CAT rate is 33%.
• A Stamp Duty charge will be incurred where assets are transferred during a person’s lifetime. Stamp Duty is not
chargeable on transfers on death. Stocks and shares and other marketable securities are liable to stamp duty at a
rate of 1%. All other assets are liable at a rate of 1%, 2% or 7.5% depending on the value or nature of the assets.
Two different reliefs are available, which if applicable can reduce these tax charges.
• Retirement Relief from Capital Gains Tax
• Business Relief from Capital Acquisition Tax
Please click on link for the conditions for availing of these reliefs rules.