In Ireland, Revised Entrepreneur Relief provides a reduced Capital Gains Tax (CGT) rate of 10% on the disposal of qualifying business assets, significantly lower than the standard rate of 33%.
Key Updates for 2026
Effective 1 January 2026, the lifetime limit on qualifying gains has increased from €1 million to €1.5 million. This change allows entrepreneurs to save up to €345,000 in total tax compared to the standard rate.
Existing Claims: Individuals who already utilized the previous €1 million limit prior to 2026 are entitled to benefit from an additional €500,000 threshold for disposals made on or after 1 January 2026.
How do you qualify for the relief?
You must have owned the business assets for a continuous period of three years. The three years must be in the five years immediately prior to the disposal. The business asset must be used for a qualifying business. In the case of shares, you must have owned at least 5% of the ordinary shares for a continuous period of three years. The three year period can be at any time prior to the disposal.
Qualifying business assets
Qualifying business assets are:
- shares held by an individual in a trading company or a holding company of a qualifying group
- assets owned by a sole trader and used in their trade.
Qualifying business
A qualifying business is a business other than the:
- holding of securities or other assets as investments
- holding of development land
- development or letting of land.
