This is a Capital Gains Tax relief, which can be applied in certain circumstances when disposing of a business or a farming qualifying asset. If the criteria are met, there can be an exemption of Capital Gains Tax (CGT) at 33%.
It is first worth noting that to qualify for relief the individual does not have to actually retire. An individual could sell assets and then continue to be actively involved in the business. Another misconception is that the individual has to dispose of the entire business, however, they can hold onto some of the shares of the business should they wish to do so.
What age do you qualify for retirement relief?
If you are 55 or older, you may qualify for Retirement Relief. If you are younger than 55, you may qualify for this relief where you:
- Are unable to continue farming or carry out your profession due to ill health
- Reach the age of 55 within 12 months of the disposal
There are two types of relief available, depending on whom you dispose the asset to:
- Your child
- Somebody outside your family
For more information contact George Skelton at 053 9170507 or email firstname.lastname@example.org