Reduced rate/earn outs
09/02/1996
Query
Does an entitlement to additional consideration under an earn out qualify for relief under S.592?
Decision
As the amounts received in an earn out are in respect of a right separate to shares which were disposed of, they will not qualify for the relief. However, in practice, cash earn-outs may be treated as qualifying for the relief.
Capital Gains Tax
Section 592, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:G.162(L)