These limits changed on 1 January 2025. 'Child' includes a niece or nephew who has worked full-time on the farm for 5 years.
Quick facts
- Age
- 55 or over
- To a child, 55 to 69
- Up to €10 million
- To a child, 70+
- Up to €3 million
- To others, 55 to 69
- Up to €750,000 (lifetime)
- To others, 70+
- Up to €500,000
- Clawback
- Child sells within 6 years
The basics
"If you are 55 years of age or older, you might be able to claim Retirement Relief." "Although this is referred to as Retirement Relief, you do not need to retire from the business or farming."
Younger, through ill health: "You are unable to continue to run your farm or business due to ill health (you will need to provide medical evidence of the illness). You reach the age of 55 within 12 months of the disposal."
Passing it to a child
From 1 January 2025: "between 55 and 69, the relief is restricted to €10 million 70 or older, the relief is restricted to €3 million." A child includes a stepchild, foster child, or "niece or nephew who has worked full time in the business or farm for at least five years up to the date of the disposal".
It's clawed back "if you claim relief on the transfer of a business or a farm to your child and your child disposes of the asset within six years." Above €10 million, the CGT can be deferred.
Selling to someone else
Tax-free up to: "€750,000 for disposals made: from 1 January 2014 to 31 December 2024 (inclusive) and you are between 55 and 65 or on, or after, 1 January 2025 and you are between 55 and 69." And "€500,000 for disposals made from 1 January 2014 to 31 December 2024 (inclusive) and you are at least 66 or on, or after, 1 January 2025 and you are at least 70 years old."
"The €750,000 and €500,000 thresholds are lifetime limits on the disposal of your business or farm to someone outside your family." "If the market value is more than the threshold, marginal relief may apply. This limits the CGT to half the difference between the market value and the threshold."
An example
A 59-year-old sells a farm for €720,000. "Gerry qualifies for full relief because he is over 55 and the market value is under the threshold of €750,000." Claim it on your CGT return.
Common questions
What is CGT Retirement Relief?
Relief from Capital Gains Tax when someone aged 55 or over disposes of a farm or business. You don't have to actually retire.
How much is Retirement Relief when transferring to a child?
From 2025, up to €10 million if you're 55 to 69, and up to €3 million from 70.
What is the limit when selling to a non-family member?
€750,000 if you're 55 to 69, or €500,000 from 70, as a lifetime limit, with marginal relief above it.
Can a niece or nephew get Retirement Relief?
Yes, they count as a child if they've worked full-time in the farm or business for at least 5 years.
Is Retirement Relief clawed back?
Yes, if your child disposes of the asset within 6 years.