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Amendment of section 598 of Principal Act (disposals of business or farm on “retirement”)
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49. Section 598 of the Principal Act is amended—
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(a) in subsection (1)(a)—
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(i) in the definition of “payment entitlement”, by the substitution of “Regulation (EU) 2021/2115 of the European Parliament and of the Council of 2 December 202114
” for “Regulation (EU) No. 1307/2013 of the European Parliament and of the Council of 17 December 2013”, and
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(ii) by the insertion of the following definition:
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“ ‘relevant year of assessment’ means the year of assessment in which the disposal for which relief is claimed under this section or section 599 is made;”,
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(b) in subsection (2)—
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(i) in paragraph (a), by the insertion of “on or before 31 December 2024” after “qualifying assets”,
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(ii) in paragraph (c), by the insertion of “and on or before 31 December 2024” after “2014”,
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(iii) by the insertion of the following paragraphs after paragraph (c):
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“(ca) Subject to this section, where an individual who has attained the age of 55 years but has not attained the age of 70 years disposes of the whole or part of his or her qualifying assets on or after 1 January 2025, then—
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(i) if the amount or value of the consideration for the disposal does not exceed €750,000, relief shall be given in respect of the full amount of capital gains tax chargeable on any gain accruing on the disposal, and
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(ii) if the amount or value of the consideration for the disposal exceeds €750,000, the amount of capital gains tax chargeable on the gain accruing on the disposal shall not exceed 50 per cent of the difference between the amount of that consideration and €750,000.
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(cb) Subject to this section, where an individual who has attained the age of 70 years disposes of the whole or part of his or her qualifying assets on or after 1 January 2025, then—
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(i) if the amount or value of the consideration for the disposal does not exceed €500,000, relief shall be given in respect of the full amount of capital gains tax chargeable on any gain accruing on the disposal, and
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(ii) if the amount or value of the consideration for the disposal exceeds €500,000, the amount of capital gains tax chargeable on the gain accruing on the disposal shall not exceed 50 per cent of the difference between the amount of that consideration and €500,000.”,
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and
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(iv) in paragraph (d), by the substitution of “paragraphs (a) to (cb)” for “paragraphs (a), (b) and (c)”,
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(c) in subsection (3A), by the substitution of “the reference to 55 years in paragraphs
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(a) and (ca) of subsection (2) were a reference to” for “the age referred to in subsection (2) were”,
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(d) in subsection (3B)(b)(ii)(II), by the substitution of “in paragraphs (a) and (ca) of subsection (2)” for “in subsection (2)(a)”, and
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(e) by the insertion of the following subsection after subsection (8):
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“(9) A claim for relief under this section shall be made by the individual making the claim in the return required to be delivered by that individual under Chapter 3 of Part 41A for the relevant year of assessment.”.
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14 OJ No. L435, 6.12.2021, p.1 |
