Irish Revenue has updated its guidance on CGT relief for company reconstructions and amalgamations under section 615, confirming continued application to UK-resident companies post-Brexit and refining the manual to reflect current legislative provisions.
Irish Revenue has published eBrief No. 084/26 on 22 April 2026, issuing revised guidance on Capital Gains Tax (CGT) relief for company reconstruction or amalgamation transactions.
Tax and Duty Manual Part 20-01-02 explains the operation of CGT relief available under section 615 of the Taxes Consolidation Act 1997 in cases of company reconstruction or amalgamation, particularly where business assets are transferred between companies.
The manual has been updated to confirm that the relief continues to apply to chargeable assets of companies resident in the United Kingdom following the enactment of the Withdrawal of the UK from the European Union (Consequential Provisions) Act 2020, which was commenced with effect from 31 December 2020 (SI No. 723 of 2020). It also streamlines the guidance to reflect the current application of the legislation.
Under section 615, where a company transfers its business assets to another company in exchange for the assumption of liabilities, the transaction is treated as tax neutral for CGT purposes. The receiving company inherits the original acquisition cost and acquisition date of the assets, deferring any CGT liability until a future disposal to a third party.
The relief may also apply to the division of family-owned trading companies into separate entities, provided there is no change in the underlying ownership value. The manual clarifies that the relief is intended only for bona fide commercial reorganisations and does not extend to trading stock or certain investment assets.
