Finance Minister Paschal Donohoe has announced changes to the Capital Gains Tax Entrepreneur Relief in today's Budget.
Under the changes, the ordinary share holding requirement so that a person who has owned at least 5% of the shares for a continuous period of any three years now qualifies for this relief.
Previously, a person had to own at least 5% for a continuous period of three years in the five years immediately before the disposal.
The Minister said this introduces a greater ability for a person to expand their business without worrying about losing this relief.
"The fact that they will still be required to work in the business for three out of the five years before disposal means that this easing of the ownership restriction does not benefit passive investors," he stated.
He also said he is bringing forward a Financial Resolution to make a technical amendment to the Capital Gains Tax legislation to address an avoidance issue which had been brought to his attention.
