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Retirement Relief

  • 21-11-2018 4:17pm
    #1
    Heisenburg81
    Closed Accounts Posts: 322 ✭✭


    Would shares deriving their value from a balance sheet as per below qualify in full for retirement relief assuming all other conditions met;

    Potential 3rd party sale and aged 55 - 60 so proceeds available of €750,000.

    Cash at bank €400,000
    Equipment €10,000
    Debtors €10,000

    Would the proceeds * CBA / CBA formula apply and thus render all the share value as qualifying?

    If the equipment was not on the balance sheet there would be no chargeable assets on the balance sheet.
    In this case what would the situation be?

    Thanks


Comments

  • #2
    Paddy001
    Registered Users, Registered Users 2 Posts: 724 ✭✭✭Paddy001


    Heisenburg81 wrote: »
    Would shares deriving their value from a balance sheet as per below qualify in full for retirement relief assuming all other conditions met;

    Potential 3rd party sale and aged 55 - 60 so proceeds available of €750,000.

    Cash at bank €400,000
    Equipment €10,000
    Debtors €10,000

    Would the proceeds * CBA / CBA formula apply and thus render all the share value as qualifying?

    In short - yes.
    Heisenburg81 wrote: »
    If the equipment was not on the balance sheet there would be no chargeable assets on the balance sheet.
    In this case what would the situation be?

    Retirement relief may not apply and the gain may be chargeable. However you could seek to rely on the 6 month rule in that the business assets were disposed of within 6 months of liquidation. However this can be subjective and open to scrutiny. It would be best to carry some/all business assets into liquidation where practical. An MVL is not expensive so the extra cost of disposing of a few assets is probably worth it for peace of mind.


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