Capital Acquisitions Tax Business Relief
Revenue guidance has issued on specific issues arising because of Covid19.
Business Relief allows a reduction of 90% in the taxable value of certain business assets that comprise a business for the purposes of calculating gift and inheritance tax. To avoid a clawback of the relief, a gifted or inherited business must continue to trade for the period of 6 years after the valuation date for the gift or inheritance. The relief will not be clawed back where, because of Covid-19 restrictions, a business ceases to trade temporarily during this 6-year period.
The normal practice of not imposing a clawback where a business ceases to trade because of bankruptcy or bona fide winding up on grounds of insolvency will continue to apply.
