Investments in qualifying companies or approved funds under the Business Expansion Scheme are tax deductable.
The relief is available to both you and your spouse, providing you both have sufficient income in your own right to cover the investment. If the full relief cannot be obtained because of insufficiency of income, further relief can be obtained in later years.
Tax relief is currently available to individuals only. Relief is available at the higher income tax rate Unutilised investment can be carried forward for relief against future income Relief will be clawed back if you sell your shares within five years The full cost of the shares is allowable for capital gains tax purposes, when you sell your shares after five years.
The Companies that qualify most obey the following criteria:
The company must be incorporated and carry on its trade in the Republic of Ireland, the company must not be quoted on the Irish Stock Exchange, the investment must be in the form of ordinary share capital and carry no preferential rights, the ordinary share capital in question must be allotted as fully paid up, the company must commence trading within two years of the share issue, the company must carry out a qualifying trading activity, which include manufacturing, internationally traded services, research and development, trading facilities in the IFSC docklands project.
N.B. this is not a complete list and that some qualifying activities require certification by a government agency to qualify for Business Expansion Scheme purposes.
The individuals that qualify must obey the following criteria:
The individual must be resident in the Republic for the tax year in which relief is claimed, the individual must own less than 30% of the controlling shares of the qualifying company.
Note: we do not recommend specific investments. The investor is required to select their preferred investment upon which we will give tax advice only.
If you require more information please consult your tax advisor or email us at tax@fixmytax.com.
Our Services...We will assist with the tax aspects of a BES scheme only both from the Company's point of view and that of the Individual's.
Our work would include registration of the scheme and filing of relevant documentation.
Under the rules set out by the Irish Financial Services Regulatory Authority and Auditor regiatration, we do not assist in the fund raising process which forms the purpose of all Business Expansion Schemes.
Contact us at tax@fixmytax.com.
