In a welcome boost for entrepreneurs and start-ups, Ireland’s Finance Minister Michael Noonan, TD, has reduced the capital gains tax rate from 20pc to 10pc.
The move follows on last year’s reduction of capital gains tax (CGT) from 30pc to 20pc.
Last year, company limits of BES/EIIS were increased but there was no mention of that in this Budget.
The new 10pc rate will bring Ireland closer in line with competitive CGT rates on the sale of a business in the UK.
‘I will review the €1m lifetime limit in future budgets. All other aspects of the relief remain unchanged’
– MICHAEL NOONAN
“I am improving the revised entrepreneur relief I introduced in Budget 2016 by reducing the 20pc rate of capital gains tax to 10pc on disposals of qualifying assets up to a limit of €1m in chargeable gains,” Noonan said.
CGT still has some way to go to compete with UK rate
“I will review the €1m lifetime limit in future budgets. All other aspects of the relief remain unchanged.”
In June, Siliconrepublic.com reported how the Government planned to reduce the rate of capital gains tax for new start-ups to 10pc, with a €10m cap on gains.
While the new rate goes some direction to assuaging the concerns of entrepreneurs, the €1m limit which is carried on from last year was slammed by entrepreneurs and investors last year as derisory.