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RELIEF FOR INVESTMENTS IN CORPORATE TRADES

Learn about the EII, SCI, and SURE schemes for investment relief in corporate trades. Discover eligibility, administration, and tax manuals.

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RELIEF FOR INVESTMENTS IN CORPORATE TRADES

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  1. RELIEF FOR INVESTMENTS IN CORPORATE TRADES Employment Investment Incentive (“EII”) Start Up Capital Incentive (“SCI”) Start-Up Relief for Entrepreneurs (“SURE”)

  2. OLD SCHEME Still in operation for investments made up to and including 31st December 2018 Same process as always: Application to revenue: eiiadmin@revenue.ie Certification Cert No. – Only on receipt of this can the relief be claimed on IT Return The 10/40 element will also be the same process as is currently in operation for investments up to and including 31st December 2018 Outline Application Form no longer applicable

  3. OLD SCHEME The forms to be completed for investments up to this point can be found as follows:- https://www.revenue.ie/en/starting-a-business/documents/form-eii1.pdf https://www.revenue.ie/en/starting-a-business/documents/form-eii1-supplemental.pdf https://www.revenue.ie/en/starting-a-business/documents/form-eii1a.pdf

  4. NEW SCHEME Scheme will move to Self-Assessment Investments made from 1st January 2019 Three available under Part 16: Employment Investment Incentive (“EII”) Start Up Capital Incentive (“SCI”) Start-Up Relief for Entrepreneurs (“SURE”)

  5. What are the reliefs… • EII: • Tax Relief for SME’s • Funding from those not connected with company • Lifetime & Annual Limits apply • Direct investment or through Designated Fund • SCI: • Tax Relief for early stage micro companies • Family members • Lifetime limits apply • SURE: • Tax Relief for entrepreneurs • Lifetime & Annual Limits apply

  6. Eligibility to relief • There must be:- • A Qualifying Company • Activities of company & other businesses in RICT Group • Purpose • Relevant period • Subsidiaries • Control • Share Capital • Conditions on date shares are issued (GBER)

  7. Eligibility to relief • There must be:- • A Qualifying Investment: • Eligible Shares • Minimum Investment • Initial, Follow-On, Expansion • Business Plan (GBER) • A Investor who fulfils the criteria • Cannot be connected* • *SCI is different

  8. General Block Exemption rules - Conditions • SME • Undertaking in Difficulty • Unlisted • RICT Group • Linked/Partner Businesses • Business Plans • Initial, Follow-On, Expansion Risk Finance

  9. New scheme - administration • GBER Uncertainty • Revenue will offer confirmation on certain points • Statement of Qualification • Issued by company • Reporting Requirements • Form RICT • 60 Days from having spent 30% of EII amount raised • CT Return Requirements

  10. New scheme - administration • Investor Claiming the Relief • How to make the investment • When to claim the relief • Form 11/12 Requirements • How & When to Claim balance of relief • Carry Forward of Unused Relief • Investments through Designated Funds

  11. New scheme - administration • Section 508U: • Assessments made against company • Assessment to CT Case IV Schedule D • For the year the relief was given • Amount equal to 1.2 times the amount • Section 508V: • Assessments made against investor • Assessment to IT Case IV Schedule D • For the year the relief was given • Code of Practice for Revenue Audit and other compliance interventions now applicable • Interest, Penalty, Publication

  12. Sci & sure • Carrying on a qualifying new venture • Newly incorporated company (less than 2 years) • Activities not carried on by any other person • SURE Investor must be a ‘specified individual’ • SURE Ownership & Employment requirements • SCI only available for micro enterprises • SCI and connected persons • SCI not available if have partner or linked business • SCI Lifetime limit of €500,000 • SURE Clawback can only be against the investors

  13. Tax and DUTY MANUALS • Relief for investment in corporate trades: as it applies to companies Part 16-00-02 • Coming Soon • Relief for investment in corporate trades: as it applies to investors Part 16-00-03 • Coming Soon

  14. THANK YOU My Enquiries: eiiadmin@revenue.ie My Enquiry Relates to: Relief for investment in Corporate Trades More specifically: Employment and Investment Incentive (EII) Alternatively: Office of Revenue Commissioners Authorised Officer Incentives Branch Stamping Building Dublin Castle Dublin 2 D02 HW86

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