Most Irish business owners spend decades building something real.
A company.
A reputation.
A legacy.
But when it’s time to sell or pass it on?
They get hit with a massive tax bill.
Capital Gains Tax (CGT) in Ireland is 33%.
That could mean losing hundreds of thousands of euro in one go.
But it doesn’t have to be that way.
There are two legal, Revenue-approved strategies that could save you up to €230,000 in tax — or more.
In this guide, I’ll break them down step by step:
- How each relief works
- Who qualifies
- What’s changing in 2025
- And how to plan your exit smartly — whether you’re selling to an outsider or passing it to your children
The First Strategy: Entrepreneur Relief
Entrepreneur Relief reduces Capital Gains Tax from 33% to 10% on up to €1 million in lifetime gains.
That’s a potential tax saving of €230,000 — but only if you meet the strict conditions.
Who Qualifies?
You might qualify if you’re:
- A sole trader selling business assets
- A partner in a trading partnership
- A shareholder in a trading company (minimum 5% ordinary shares)
- A director or employeewith a managerial or technical role (3 of last 5 years)
What Assets Qualify?
- Shares in a trading company
- Goodwill and business assets from a sole trade or partnership
- Assets used in a trading partnership
What Doesn’t Qualify?
- Investment assets or securities
- Development land
- Personally held property used by your company
- Goodwill transferred to a connected company
- Shares where you’re still connected after the sale
CGT Deadlines:
- Sell between Jan–Nov? Pay by 15 December
- Sell in December? Pay by 31 January
Real Example: Mark from Cork
Mark (59) is a sole trader who built an electrical contracting business.
He sells it for €900,000 after 20+ years.
- At 33% CGT: he’d owe €297,000
- With Entrepreneur Relief (10%): he pays €90,000
- Tax saved = €207,000
That’s money he can use to retire, invest, or support his family.
The Second Strategy: Retirement Relief
Despite the name, you don’t have to retire to claim it.
You just need to be aged 55 or older and disposing of qualifying business assets — whether to family or an external buyer.
Family Transfers
If you’re passing your business to:
- Your children, or
- Nieces/nephews who’ve worked full-time in the business for 5+ years
You may qualify for full or partial CGT exemption.
Key Conditions
- You must have owned and run the business for 10+ years
- Assets must be used in a qualifying trade
- Must formally claim the relief in your tax return
2024 Rules (Until 31 Dec 2024)
- Age 55–65: No CGT cap
- Age 66+: €3 million lifetime CGT exemption cap
2025 Rules (From 1 Jan 2025)
- Age 55–69: CGT exemption capped at €10 million
- Age 70+: Cap drops back to €3 million
Planning around these ages could save you six figures in tax.
Dry Tax Charges
Transferring to family often involves no money changing hands.
But you’re still taxed on market value.
That creates a “dry tax charge” — a tax bill with no cash to pay it.
Third-Party Sales
You can also claim Retirement Relief when selling to someone outside the family — but the caps are lower.
- Age 55–69: Exemption up to €750,000
- Age 70+: Cap drops to €500,000
Marginal Relief: A Safety Valve
If you slightly exceed the exemption limit, Marginal Relief applies.
It caps your CGT to 50% of the excess — rather than losing the full exemption.
Example:
- You’re 60 and sell for €1 million
- First €750K is tax-free
- Excess = €250K → CGT capped at €125,000
- Without relief, tax would’ve been €330,000
Timing your exit before age 70 can save over €200K in tax.
Strategic Insight: Age Matters More Than Ever
If you’re approaching age 66 or 70, your window of opportunity is closing.
The 2025 rule changes introduce hard caps on how much wealth you can transfer tax-free.
Once your birthday passes, those caps tighten — and the tax bill grows.
So whether you’re selling to a buyer or handing the business to family:
- Model your options
- Check your eligibility
- Time your exit strategically
Combining Entrepreneur & Retirement Relief
Some business owners may qualify for both.
But Revenue only lets you use one relief per disposal.
Which one should you use?
It depends on:
- Your age
- Your ownership structure
- Whether you’re selling to family or a third party
- How much of your lifetime CGT limit you’ve already used
A qualified tax adviser can help you run the numbers — and choose the most efficient option.
Align With Inheritance Tax (CAT) Strategy
When planning your exit, don’t forget the next generation.
Currently, your children can inherit €335,000 tax-free.
Above that, 33% CAT applies.
So if you’ve built substantial business wealth, the worst-case scenario is paying CGT now and CAT later — on the same value.
That’s why it’s critical to align:
- CGT Reliefs(now)
- CAT Planning(later)
A smart structure ensures you keep more — and pass on more.
Your Exit Is Not the End. It’s the Beginning.
Selling or transferring your business isn’t just a transaction.
It’s a turning point in your financial life.
From here, it’s about:
- Protecting your assets
- Ensuring liquidity
- Building a legacy for your family
The tax reliefs we’ve covered are not loopholes — they’re smart planning tools.
Used correctly, they let you preserve more of what you’ve built.
5 Key Takeaways
- Start early — ideally 5 years before your planned exit
- Review ownership and employment history now
- Time your exit to maximise tax relief before age-based thresholds change
- Coordinate CGT and CAT strategies to protect both current and future wealth
- Get advice — structure, valuation, and timing are everything
Need Help Planning Your Business Exit?
I help Irish business owners:
- Exit on their own terms
- Minimise tax
- And protect their legacy
Whether you’re years away or already in planning mode —
Book a confidential, no-pressure consultation.
Let’s make sure your exit is efficient, strategic, and future-ready.
About the Author
Kevin Elliott is a Financial Planner and quantitative finance expert with over 18 years of experience in global financial markets. He has worked with top-tier institutions such as Bank of New York, Bridgewater Associates, RBS, CIBC, UniCredit, and Bank of America, where he served as Director in New York.
Holding a BSc in Economics and Finance and a Graduate Diploma in Financial Planning from University College Dublin, along with an MBA from Imperial College London, Kevin combines deep technical expertise with a passion for personal finance and wealth building.
Kevin is committed to helping individuals take control of their finances, invest wisely, and build long-term wealth. With a knack for simplifying complex financial concepts, he provides actionable insights on investing, retirement planning, and financial independence.
Whether you’re a beginner looking to start your wealth journey or a seasoned investor fine-tuning your strategy, Kevin offers practical guidance, expert analysis, and proven strategies to help you achieve financial freedom and security.
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