Business transfers: higher capital gains exemption thresholds and a three-year sale window after retirement

Article 19 of the 2022 Finance Act raises the thresholds of the exemption for business capital gains on the transfer of a sole proprietorship or a complete line of business (Article 238 quindecies of the General Tax Code): full exemption up to €500,000 (instead of €300,000) and partial exemption up to €1,000,000 (instead of €500,000). It also opens the scheme to sales of a leased-out business to a third party. For business owners who retired between 1 January 2019 and 31 December 2021, the period to sell the business or shares while keeping the €500,000 allowance or the exemption (Articles 150-0 D ter and 151 septies A) is extended from two to three years, and the fixed allowance of Article 150-0 D ter is extended until 2024.