Business Relief

Circumstances in which relief can be withdrawn

Relief on relevant business property can be fully or partially withdrawn in certain circumstances.

For gifts and inheritances taken after 1 January 2024, Revenue will withdraw the relief where the relevant business property:

• ceases to trade within six years of the valuation date of the gift or inheritance
• is disposed of, in whole or in part, within six years of the valuation date of the gift or inheritance. This includes if the disposal was due to compulsory acquisition. If you replace this property within one year of the disposal, Revenue will not withdraw the relief.
• or
• comprises development land and the disposal is within ten years of the valuation date of the gift or inheritance.

For gifts and inheritances taken prior to 1 January 2024, Revenue will claw back the relief where the relevant business property:

• ceases to trade within six years of the date of the gift or inheritance
• is sold, redeemed or compulsorily acquired within six years of the date of the gift or inheritance. If you replace this property within one year of the disposal, Revenue will not withdraw the relief.
• or
• comprises development land and the disposal is within ten years of the date of the gift or inheritance.

Revenue will not withdraw the relief where a business ceases trading because of bankruptcy or winding-up on the grounds of insolvency.

Where Revenue claws back the relief, you need to file an additional CAT return and pay any outstanding tax due.

Next: How do you claim Business Relief?