Capital Acquisitions Tax
If you are a business owner, you should also take a close look at the implications of Capital Acquisitions Tax if you are thinking about passing on your business to your family when you die.
Inheritance tax can become a real burden where financial resources are tied up in a business.
Did you know?
• Your children can only inherit €280,000* from you tax free.
• Anything in excess of this, per child, is taxable at 33%.
• Leaving assets to your children may result in them having to pay Inheritance Tax.
Source: Capital Acquisitions Tax Consolidation Act 2003 (as updated). *Group 1 Threshold available from 14 October 2015.
If you do not plan ahead, your family could be faced with a difficult decision between having to sell the business or borrow the money to pay the tax liability.
There are a number of solutions to this and Gift or Inheritance tax planning allows you to plan for the tax liabilities which could arise, thus ensuring that the business won’t have to be sold off to pay the tax bill.