Disposing of assets and giving gifts and inheritance
Capital Gains Tax (CGT)
Principal Private Residence
If you sell your home, you may be able to claim Principal Private Residence Relief. This means you are exempt from paying some or all CGT on the sale.
Disposal of a business or farm
You may be entitled to Retirement Relief from CGT on the sale or transfer of assets. You must be 55 to 66 years of age. The assets must also be in the use of the business or trade.
You may also claim this relief on transferring or selling shares in your family company. You must have owned the shares for at least ten years.
You can claim full Retirement Relief for disposing of a business or farm to your child.
Gift and Inheritance Tax
If you give a gift or inheritance to someone, they may have to pay Gift and Inheritance Tax on it.
Parents can give their children tax free gifts up to a certain limit or threshold over the child's lifetime. See Capital Acquisitions Tax thresholds, rates and aggregation rules for more information about these thresholds.
Gifts or inheritances you receive from your spouse or civil partner are exempt from Gift and Inheritance Tax.
You may claim the Small Gift Exemption to give tax free gifts up to €3,000 to family members or friends.
Exemptions such as those relating to retirement benefits or to dwelling houses may also be relevant depending on the circumstances.
Reliefs which can reduce the tax bill of the person receiving the gift or inheritance are:
Dwelling House Exemption
The Dwelling House Exemption may apply when you leave a dwelling house to a beneficiary under the terms of your will. The exemption may also apply if you gift a dwelling house to a dependent relative.
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