Capital Gains Tax cut in Budget 2027 - are you considering your options?
Budget 2027 · October 2026
Are you considering your options?
Capital Gains Tax has been cut from 33% to 31%
In Budget 2027 the Minister for Finance announced a two-percentage point reduction in the headline rate of Capital Gains Tax, from 33% to 31%, the first cut to the main rate in over a decade. For shareholders weighing a sale, a succession or a reorganisation of the business they have built, the economics of a transaction has moved in their favour: on a €10 million disposal the change is worth €200,000 in additional net proceeds.
A rate change should never, on its own, drive the decision to sell, but it can sharpen the question of timing. Ultimately, achieving the best possible sale price comes down to preparation. A well-run sale process takes months of careful planning to ensure the business is positioned to maximise value, and the owners who achieve the strongest outcomes are typically those who start preparing early.
31%Headline CGT rate following Budget 2027, down from 33%
€200kAdditional net proceeds on a €10m qualifying disposal
€1.5mLifetime limit under Revised Entrepreneur Relief, taxed at 10%
What we would have liked to see
An increase to the Entrepreneur Relief and Retirement Relief bands
Budget 2027 left both reliefs unchanged. The Revised Entrepreneur Relief lifetime limit remains €1.5 million at 10%, and the Retirement Relief threshold for disposals outside the family remains €750,000 (€500,000 from age 70), a figure that has not moved in over a decade.
Both bands are fixed in cash terms, so inflation and rising business values steadily erode their real worth. The gap between the €750,000 limit on third-party sales and the €10 million available on transfers to a child also weighs against sales to management teams or outside buyers, often the most practical succession route. We recognise that a rate cut benefits every disposal, that these reliefs carry a real Exchequer cost and that the Entrepreneur Relief limit was raised only last year. Even so, a measured increase would have been a proportionate step for owners planning an exit.
How we can assist
Why owners work with us
We know owner-managed business
Owner-managed companies are the core of our practice. We understand how they are run, how they are valued, and what a buyer will test when the process starts.
Our team are business operators
We understand the operational demands a transaction places on a management team and the emotional weight of selling something you built.
Get in touch
If you are considering your potential exit options or how a process would look — get in touch with us.
This document is for general information only and does not constitute tax, legal or financial advice. Budget 2027 measures are subject to the passage of the Finance Bill; commencement provisions and the application of individual reliefs should be confirmed before any transaction is undertaken. © 2026 HLB Ireland Corporate Finance.
