Revenue has updated guidance on Revised Entrepreneur Relief under section 597AA of the Taxes Consolidation Act 1997, incorporating Finance Act 2025 changes that increase the lifetime CGT relief limit to EUR 1.5 million from 1 January 2026 and revise the Tax and Duty Manual with additional examples and restructuring for clarity.
Irish Revenue issued eBrief No. 080/26 on 17 April 2026, updating guidance on Revised Entrepreneur Relief.
The update relates to Tax and Duty Manual Part 19-06-02b, which guides the Capital Gains Tax (CGT) relief known as Revised Entrepreneur Relief under section 597AA of the Taxes Consolidation Act 1997. The relief allows a reduced CGT rate of 10% for individuals disposing of qualifying business assets, subject to specific conditions. These generally include a minimum ownership period of three years and, in the case of company shares, a requirement to hold at least 5% of the ordinary share capital while acting as a director or employee.
The manual has been revised to incorporate changes introduced by the Finance Act 2025, which increased the lifetime limit on the relief from EUR 1 million to EUR 1.5 million. This higher limit applies to chargeable gains arising from disposals of chargeable business assets by a relevant individual on or after 1 January 2026.
In addition, the guidance has been restructured for clarity and includes further examples explaining how the provisions operate in practice.
