5 Tax Strategies to Reduce Capital Gains When Selling a Business in Ireland Selling a business can lead to a significant Capital Gains Tax (CGT) liability, but with the right planning, you can legally reduce or defer your tax bill. Here are five key strategies to consider. Maximise Entrepreneur Relief What It Is: Entrepreneur Relief…
Written By Ronan Duffy (Guest Blogger) of McCambridge Duffy – Personal Insolvency Practitioners When to Consider Insolvency and How It Can Help In my years as a Personal Insolvency Practitioner (PIP), I’ve seen many individuals and families struggle with the burden of unaffordable debt. There are many reasons as to why the debt is no…
Tax-Efficient Investment in Ireland Maximizing Returns While Minimizing Tax Liabilities Investing in Ireland offers significant opportunities for wealth growth, but understanding the tax landscape is crucial to making the most of your returns. The Irish tax system provides various avenues for tax-efficient investment, allowing individuals and businesses to optimize their investment strategies. In this article,…
Succession planning is one of the most important aspects of personal finance, yet it is often overlooked until it is too late. For individuals and families in Ireland, ensuring that your wealth is passed on to future generations in a tax-efficient manner requires careful planning, especially in the face of Ireland’s complex inheritance and…
RTSO stands for “Relevant Tax on Share Options.” It is a tax that must be paid on any income tax due on gains realized from the exercise of share options. Significant changes to the Relevant Tax on Share Options (RTSO) were introduced in Finance Act 2023, effective from 1 January 2024. For year 2023, Taxpayers…
Selling a business is a significant milestone for any entrepreneur. It marks the culmination of years of hard work and dedication. However, it also brings with it a host of financial and tax considerations that must be carefully managed to ensure you maximize your returns and comply with Irish tax laws. Here, we delve into…
When a company director receives a termination payment, it is essential to understand the tax implications to ensure compliance with Irish tax laws. Termination payments can be subject to various tax treatments depending on the nature of the payment and the circumstances surrounding the termination. Here’s a detailed overview of how termination payments for company…
Selling shares back to your company, also known as a share buyback, is a strategic move that can offer numerous benefits to both the shareholder and the company. However, it also involves navigating complex tax regulations and legal requirements. Here is an overview of the process, the benefits, and the tax implications of selling…
Reducing income tax for company directors involves strategic planning ahead of tax filing time and utilising various tax reliefs and allowances available under Irish tax law. As the income tax filing deadline is Thursday 14th November for online ROS filers, now may be a good time to review your tax bill. Here are a…
Extracting cash from your company in a tax-efficient manner is crucial for maximizing your personal wealth while minimizing your tax liabilities. Here are several strategies to consider: Salary and Bonuses Taking a salary or bonus is the most straightforward way to extract cash from your company. However, this method is subject to income tax, PRSI,…
Inheritance tax can be a significant concern for many families Passing your business to your children Ireland, especially when planning to pass on assets to the next generation. However, with careful planning and the use of available reliefs and exemptions, it is possible to reduce the inheritance tax burden. Here are some strategies to consider:…
Ireland boasts a favourable tax rate of 12.50% for trading income. However there is also a 25% corporation tax rate which applies to passive income, such as in rental, investment income or foreign income from abroad. The possibility of having the profits of an Irish company taxed at the trading rate of 12.5% is based…
WHAT IS A REVENUE TAX AUDIT? A Revenue Audit is a process whereby the figures reported in a company’s tax returns are analysed by Revenue. Generally, an audit will cover the most recent prior year returns of up to four years, but if discrepancies arise, the audit can review the records for six years,…
Financial planning is the process during which you sit down with an Accountant and discuss how financially secure you would like to be in the future, and then devise a plan to help you get there. I see this as one of the most liberating decisions we can take as a person and business owner.…
6 TOP TAX RELIEFS FOR BUSINESS OWNERS Here are 6 Key tax reliefs available to Irish businesses to help them grow and develop. The reliefs provide business owners with very significant tax savings which is an incentive to grow and then possibly sell on the business at a profit, and pay less tax: Entreprenuers CGT…
Accounting Software & Data Analytics – why are they useful Data Analytics is mainly used for decision making in a business. Decisions can be based on gut feelings, past experience or a feeling, alternatively it can be based on facts, such a data. Decisions making can be prone to human bias but Data Analytics can…
The economic impact of Covid may worsen personal and business financial problems, caused by unemployment, pay cuts, business closure and illness. The aftermath of Covid effects disposal income, savings, retirement pensions, investment and debt. This can result in people worrying excessively over a period of time about their financial security. People who get into debt…
6 TOP TAX RELIEFS FOR BUSINESS OWNERS Here are 6 Key tax reliefs available to Irish businesses to help them grow and develop. Tax on selling your business can be significant. These reliefs provide business owners with very significant tax savings which is an incentive to grow and then possibly sell on the business at…
Structure A – Common Business Structure Structure A – SALE offer A business owner receives an offer of €10,000,000 for his Irish Trading Company A. The business owner is an Irish Tax Resident Individual. He receives €10,000,000 in respect of his shares in Irish Trading Company A. On the assumption that the business was built…
(Read in conjunction with our blog on ‘Building A Business To Sell’) Ireland’s Holding Company Regime – relief for the disposal of shares in a subsidiary This article discusses one of the key features of Ireland’s holding company regime, the section 626B Tax Consolidation Act (TCA) 1997 capital gains tax relief for the disposal…
INCOME Net Monthly Amount Net Monthly Amount € € Earner 1 Earner 2 Net self-employed income Employment income Children’s allowance Children’s Gift Funds Rental income Rental income Other income Total INCOME €0 €0 DESCRIPTION AMOUNT PER MONTH € 1.…
Create a Back-Up Plan In the event of a loss in income, figure out for how long you can subsidise this amount using existing savings, assets or new earned income. Brainstorm ideas on your available options and consider other ways you could create income or use existing assets in your business. E.g. Online sales are…
Government Financial Assistance – Grants, Loans and Funds COVID-19 Government funds Online Trading Vouchers of €2,500, costing you €250 – net gain to you of €2,250 (previously cost you €2,500, 100%) Small Business loans of €50,000 at 4.5% interest over 3 years, with 6 month repayment break Business Continuity Grants of €2,500 for companies…
If you are a sole trader or partnership you may be thinking about setting up a company for your business. Incorporating a company for your business has its benefits and it is not expensive to form a company, however there are many other issues to take into consideration when deciding whether to incorporate. Advantages of…
Entrepreneur relief from Capital Gains Tax (“CGT”) was introduced to reduce the rate of CGT to 10% applicable to sales of business assets or shares held in a company by entrepreneurs. The relief is an incentive to encourage and reward those who take risks which benefit the economy. The relief currently only applies to the…
Corporation Tax in Ireland Ireland’s 12.5% corporate tax rate on trading income is one of the lowest ‘onshore’ rates in the world. ‘Trading profits’ include a broad range of commercial activities including Intellectual Property (IP) and Supply Chain Management. The Irish Government is committed to retaining the 12.5% corporate tax rate on trading income. …
Long hours spent slaving away when nobody’s watching, is often what’s required to make a business successful. If you’ve taken all the risks and invested all your time, you deserve to get the rewards. Sadly it doesn’t always work out like that, especially when it comes to divorce settlements. Selling your business to raise cash,…
Am I obliged to keep records for tax purposes? YES. You must keep full and accurate records of your business from the start. You need to do this whether you send in a simple summary of your profit/loss, prepare the accounts yourself, or, have an accountant do it. It is important for you to remember…
If you have significant business in the UK you may need to have a trading presence in the UK. The structure can be a separate legal entity or a UK branch of the Irish office. It is likely that any business carried on in the UK will create a permanent establishment which is taxable in…
If you are a sole trader or partnership you may be thinking about setting up a company for your business. Incorporating a company for your business has its benefits and it is not expensive to form a company, however there are many other issues to take into consideration when deciding whether to incorporate. Advantages of…
Preparation is key to collating accounts and filing your tax returns quickly. Bank statements, invoices and expense receipts should be recorded during the year, these records will form the basis of your accounts and tax returns at year end. It is important to understand the tax and accounting rules, and your entitlements when preparing accounts…