Retirement relief on disposals within family of business/farm

Section 599 TCA 1997 provides for relief from capital gains tax (CGT) on the transfer by an individual, who has attained 55 years of age, of certain business or agricultural assets to a “child”, as defined in the section. Revenue has updated the Tax and Duty Manual which provides guidance on section 599 to reflect the Finance Act 2024 amendments.

The key changes are:

• To provide the option to an individual to defer the CGT liability arising on such a disposal made on or after 1 January 2025, as the value of the assets exceeds the €10 million limit on relief granted,
• To provide for a general anti-avoidance provision in respect of relief granted on transfers of qualifying assets from an individual to a child, and the potential deferral of CGT arising in respect of such transfers, and
• To provide new and updated examples and information on the operation of the relief, and a restructuring of the content for ease of reference.