With Brexit, international market and general economic risks looming the role of the Irish entrepreneur is more important than ever to maintain Ireland’s economy.
As Irish entrepreneurs invest the economy grows, employment numbers are maintained and increased, and the driver of Irish economic activity is diversified to compliment multinational investors.
When entrepreneurs invest they take commercial risk motivated in part by the financial reward that follows business success. The Irish CGT rate is 33% and such a high CGT rate can discourage investment by entrepreneurs.
The special entrepreneurs CGT rate of 10% partly addresses this but has two key downsides:
This compares with the UK relief which applies to gains up to €10M.
It makes sense to encourage investment in business of scale and to invest in more than one business. Entrepreneurs will be watching Budget 2019 closely.
If the limit on the relief is increased closer to the UK limit of €10M and the full time working relief requirement can be relaxed there will be more reason than ever for Irish entrepreneurs to invest with the benefit that brings to the Irish economy and employment.
We are happy to help. Please post your comment below or call John Comerford, Tax Partner at Cooney Carey, on 01 677 9000. Alternatively, send him an email: firstname.lastname@example.org