The upper age limit for retirement relief supports under the Capital Gains Tax (CGT) will increase from 65 to 70 as of January 1 next year, as part of changes announced today (Tuesday, October 1) in Budget 2025.
The relief can be availed of by persons aged 55 or older when disposing of any part of a business or farm asset.
If a person is aged under 55, they may qualify for the relief if they are unable to continue farming or working in their business due to ill health, or if the reach the age of 55 within 12 months of the disposal.
On announcing the changes today, Minister for Finance, Jack Chambers said that where there are disposals by the child or children above €10 million within 12 years of receiving the assets, a clawback of the relief will apply.
Therefore, where the child or children retains the assets for more than 12 years, the CGT will be fully abated.
Minister Chambers said that this will “support” the growth and scaling of family owned businesses that are “so important in our communities”.
Budget and carers
The minister also announced further changes in the budget towards carers in the home.
“Carers play a fundamental role in our society, and Government is committed to supporting individuals and families with caring responsibilities.
“It is also a priority to further contribute to the whole of government approach to tackling child poverty,” Minister Chambers said.
Minister Chambers increased the Home Carer Tax Credit by €150; the Single Person Child Carer Credit by €150; the Incapacitated Child Tax Credit by €300; and the Dependent Relative Tax Credit by €60.
Minister for Public Expenditure, NDP Delivery and Reform, Paschal Donohoe also announced that the carer’s allowance means test will be increased to €650 for a single person and €1,250 for a couple.
An additional €200 has also been confirmed to be paid to recipients of the Living Alone Allowance.