JOE CUNNANE

TRA Professional Services

Managing Partner TRA Professional Services

TAX ISSUES The tax issues discussed with many clients this year relate to the transfers of assets to the next generation in a taxefficient manner. There is a worry that reliefs and class thresholds relating to Capital Acquisitions Tax may be curtailed in upcoming budgets.

TAX WAREHOUSING The scheme was well intentioned and very beneficial to businesses. And the mental health benefits to business owners should not be underestimated. An unforeseen circumstance relates to unpaid PAYE for proprietary directors. The proprietary director will have a personal tax liability, which may be sizeable in many cases, due to the temporary loss of the PAYE credit. We are advising clients who no longer use debt warehousing, to proactively engage with Revenue regarding an instalment arrangement.

TAX INCENTIVES We deal mainly with the SME sector and have seen very little use of the Key Employee Engagement Programme (KEEP). The definition of qualifying trade should be extended, as at present those involved in professional services and construction don’t qualify.

GREEN ECONOMY With more people working from home, new tax measures might include assisting employers and employees to ensure that proper equipment and space is provided. We also favour relaxing the current CAT and CGT rules around the leasing of agricultural land for solar panels. A current condition is that the solar panels cannot cover more than 50% of the total farm holding.

FAMILY BUSINESS High tax is one of the reasons that an efficient transfer of family firms is delayed. We would recommend the following changes:

• Increase the Capital Acquisition Tax lifetime thresholds.

• Remove the €3m cap for Retirement Relief for those aged 66 years of age and older.

• Provide full relief from tax under Business Relief as opposed to the current 90%.

• Reintroduction of Capital Gains Tax Rollover Relief.

‘High tax delays an efficient transfer of family firms’