Finance Act 2012 provided significant amendments to Section 598 (disposals to third parties) and Section 599 (disposals to children) TCA 1997 on disposals effective from the 1st of January 2014.
Please find below a summary of these changes which may consequences for your clients:
Disposals to third parties Section 599 TCA 1997
Retirement relief is currently available where proceeds do not exceed €750,000 and the disposal to a third party occurs on or before 31 December 2013.
Where the disposal to a third party takes place after 31 December 2013 the following are the relevant figures:
Aged 55-65 €750,000
Aged 66+ €500,000
Disposals to children Section 599 TCA 1997
There is currently no limit on the market value of assets qualifying for retirement relief that can be disposed of to a child. All disposals to children must be treated as made at market value.
With effect from 1 January 2014 a €3 million ceiling will apply where the individual disposing of the asset is aged 66 years or over. There will be no relief for amounts in excess of €3 million.
If you require assistance on any of the above and transferring of your business in a structured and tax efficient manner, please feel free to contact Cormac at firstname.lastname@example.org or Telephone: 01 213 5910.