The Finance (No.2) Bill 2023 as amended in Committee Stage has been published. The amendments include draft legislation for the exemption from leasing of farmland and a new capital gains tax relief for investment in innovative enterprises (angel investors).
Section 664 TCA 1997 provides a relief from income tax from leasing of farmland. The proposed amendment will impose a 7-year holding requirement in respect of purchases of farmland on or after 1 January 2024, thereby restricting the availability of the income tax relief so that it does not become immediately available to such purchasers of farmland.
The new capital gains tax relief for angel investors is to attract investment for Irish SMEs. It will allow early-stage investors avail of a reduced rate of capital gains tax, where the qualifying investment has been held for a minimum of three years prior to disposal. There is a lifetime limit of €3 million on gains that may avail of the reduced rate.
The Report Stage of the Bill is scheduled for 21 and 22 November 2023. We will keep you updated in our weekly newsletter.
LOADING...