Will I be able to claim Retirement Relief?

CGT Retirement Relief is available for persons over the age of 55 years old who dispose of ‘chargeable business assets’. So apart from being over the age of 55, it is also necessary to review your business accounts to assess for qualifying items. 

Whether you are a sole-trader or a company is also relevant, because if you trade through a company, the definition of a ‘family company’ needs to be met, and your shareholding needs to exceed a threshold if you are to qualify. 

There are also holding period and working requirements to be met so it is important to obtain tax advice prior to making any important decision about your retirement or exit/sale of your business. 

Ideally you would consider this issue several years prior to your disposal to ensure you meet all the conditions for CGT Retirement Relief when the time comes for you to sell your business. 

 

Date published 28 Feb 2024 | Last updated 28 Feb 2024

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.