You will not be entitled to an earnings-related daily allowance for the period for which we periodise the sales profit on the sale of your business assets related to the closure of your business.
Sales profit may arise for example, from the sale of shares, a partnership interest, a business or corporate assets. Sales profits may also arise from unsold business assets or those taken into your own use
The periodisation of sales profit is accounted for and any capital gain is amortised when you cease trading. The periodisation of sales profit is based on the income used as the basis for your earnings-related daily allowance. The periodisation of sales profit postpones the start of the maximum period of earnings-related daily allowance by the length of the period to which the periodisation of sales profit corresponds. The periodisation of sales profit from the sale of your business assets will be spread over a period of up to 24 months.
However, the periodisation of sales profit is not applied if your business has been in operation for less than 18 months, or if the balance sheet total of your business for the last financial year, after the deduction of business liabilities, does not exceed €20 000.
If you have not been obliged to draw up a balance sheet, please send us an inventory of assets.