CAT – Business Relief – No clawback for COVID-19 impact

Nov 23, 2020

Revenue confirmed that Business Relief will not be clawed back where, because of COVID-19 restrictions, a business ceases to trade temporarily during the relevant 6-year period. To avoid a clawback of Business Relief, a gifted or inherited business must continue to trade for the period of 6 years after the valuation date of the gift or inheritance. Revenue now confirm a concessional treatment for businesses affected by COVID-19.

The normal practice of not imposing a clawback where a business ceases to trade because of bankruptcy or bona fide winding up on grounds of insolvency will continue to apply. 

This concession is detailed on section 6 of Revenue’s webpage – COVID-19 information and advice for taxpayers and agents.