Retirement Relief Guide · 2026
Retirement Relief from CGT Ireland 2026: Thresholds & Rules Explained
Retirement Relief allows business owners and farmers aged 55+ to dispose of their qualifying assets with significantly reduced Capital Gains Tax (CGT). If you're over 66, the first €750,000 of disposal proceeds can be completely CGT-free. Transfer to a child and there's no upper limit on the relief. Use our CAT Calculator alongside your retirement planning.
Retirement Relief Thresholds 2026
The amount of relief depends on your age and whether you're transferring to a child:
| Scenario | Full Relief Limit | Partial Relief | CGT on €1M Sale |
|---|---|---|---|
| Age 55–66 | €500,000 | 50% on excess | €82,500 |
| Age 66+ | €750,000 | 50% on excess | €41,250 |
| Transfer to Child | No limit | N/A | €0 |
Real Examples
Age 67
Age 67
Age 60
Age 60
Transfer to child
What Assets Qualify?
The relief applies to qualifying business assets that you've owned and used for your trade for at least 10 years:
✅ Qualifying Assets
- • Business (sole trader, partnership)
- • Farm land and buildings
- • Business premises used in trade
- • Shares in qualifying trading company
- • Goodwill of the business
- • Business assets used personally
❌ Not Qualifying
- • Rental investment properties
- • Passive investment assets
- • Personal assets (not business)
- • Shares in investment companies
- • Development land (not farmed)
- • Assets held for < 10 years
Key Conditions
🎂 Age 55 or Over
You must be at least 55 years old on the date of disposal. The relief thresholds increase at age 66 (from €500,000 to €750,000). If you're under 55, no relief is available — you'll pay full CGT at 33%.
📅 10-Year Ownership Rule
You must have owned the qualifying assets for at least 10 continuous years ending no more than 2 years before the disposal. During that period, the assets must have been used for your trade or business. If you owned the business for 8 years and then took a 3-year break, you don't qualify.
👔 Must Be a Working Director (for companies)
If you're disposing of shares in a company, you must have been a working director who owned at least 25% of the voting shares (or 10% if all directors/employees together hold 75%+). The company must be a qualifying trading company — not an investment or holding company.
👨👩👧👦 Enhanced Relief for Children
Transferring to a child (including stepchild, foster child, or a niece/nephew who worked in the business for 5+ years) removes the upper limit entirely. The full value of the business can be transferred CGT-free. This is a powerful estate planning tool for family businesses and farms.
Full Example: Selling a Business for €1M
Michael, aged 67, sells his successful engineering business (which he's owned for 15 years) for €1,000,000. He's not transferring to a child.
| Item | Amount |
|---|---|
| Total sale proceeds | €1,000,000 |
| Fully exempt (€750k threshold for over 66) | €750,000 |
| Excess over threshold | €250,000 |
| 50% partial relief on excess | €125,000 |
| Taxable gain | €125,000 |
| CGT payable (33%) | €41,250 |
Total tax saved: €288,750 compared to paying full CGT at 33% on the entire €1M gain (€330,000 without relief).