Capital Gains Tax (CGT) reliefs

Disposal of a business or farm (Retirement Relief)


Although this is referred to as Retirement Relief, you do not need to retire from the business or farming.

If you are 55 or older, you might be able to claim Retirement Relief. This is a relief on Capital Gains Tax (CGT) when disposing of any part of your business or farming assets.

If you are younger than 55, you might qualify for this relief where you:

  • are unable to continue farming or your profession due to ill health (You will need to provide medical evidence of the illness.)
  • reach the age of 55 within 12 months of the disposal.

What is Retirement Relief?

There are two types of Retirement Relief, depending if you dispose of your business or farm to:

  • your child
  • someone outside your family.

The term ‘child’ includes your:

  • son or daughter
  • stepchild or child of a civil partner
  • child adopted under, or recognised as adopted under, the Adoption Act 2010
  • child of a deceased child
  • niece or nephew who has worked full time in the business or farm for at least five years
  • foster child, whom you have maintained for at least five years before they were 18 years old. (This must be supported by the testimony of more than one witness.)

Disposal of a business or farm to your child

The amount of relief that you can claim depends on your age at the time of disposal.

For disposals made:

  • up to 31 December 2013 you may claim full relief if you are 55 or older
  • from 1 January 2014 if you are:
    • between 55 and 65, you can claim full relief
    • 66 or older, the relief is restricted to €3 million.


If your child disposes of the asset within six years, we will withdraw the relief. Your child must then pay CGT on the original disposal by you, in addition to the CGT on their own disposal.

Disposal of a business or farm to someone outside of family

You can claim full relief when the market value at the time of disposal does not exceed the threshold of:

  • €750,000 for disposals:
    • made between 1 January 2007 and 1 January 2014
    • on or after 1 January 2014 and you are under 66.
  • €500,000 for disposals on or after 1 January 2014 and you are 66 or older.

If the market value is more than the threshold, marginal relief may apply. This limits the CGT to half the difference between the market value and the threshold.


The €750,000 and €500,000 thresholds are lifetime limits. If you exceed this threshold relief will be withdrawn. You will be liable for CGT gains on all disposals.

Marginal relief

Marginal relief may apply to gains that exceed the thresholds. It limits CGT to half the difference between:

  • the sale price or market value
  • and
  • the threshold.

How to claim Retirement Relief

Include the relief when you  calculate your CGT. You must also include details of the gain when you  file your CGT return.

Next: Transfer of a site from a parent to a child