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NEW BUSINESS OR PRODUCT VENTURES – MONEY BACK FROM REVENUEJames Hughes
November 2013
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TABLE OF CONTENTS
1. Employment & Investment Incentive Scheme (EIIS)
2. Seed Capital Relief
3. Start Up Relief
4. Start Your Own Business Relief (SYOB)
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EMPLOYMENT AND INVESTMENT INCENTIVE SCHEME (EIIS)
01
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EMPLOYMENT AND INVESTMENT INCENTIVE SCHEME (EIIS)
• Benefits
• Cash for Company
• Income Tax Relief for Investor
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EMPLOYMENT AND INVESTMENT INCENTIVE SCHEME (EIIS)
• The Company
• Trading company
• Unquoted
• Residence & Incorporation
• Micro, Small and some Medium Sized Enterprises
• Max Lifetime limit of €10m
• Max Annual limit of €2.5m
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EMPLOYMENT AND INVESTMENT INCENTIVE SCHEME (EIIS)
The Investor
• Resident in Ireland
• Hold shares for 3 years
• Not connected to company
• Relief of €150,000 in any one year
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EMPLOYMENT AND INVESTMENT INCENTIVE SCHEME (EIIS)
Tax Relief
• Initially - 30%
• After 3 years - 11%
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EMPLOYMENT AND INVESTMENT INCENTIVE SCHEME (EIIS)
Practical Issues
• EIIS Investors
• EIIS Funds
• Exit Strategies?
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EMPLOYMENT AND INVESTMENT INCENTIVE SCHEME (EIIS)
Budget 2014 / Finance Bill Amendments
• Removed from High Earners Restriction
• Investments from 15 October 2013 to 31 December 2016
• New Class of Investors?
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SEED CAPITAL RELIEF
02
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SEED CAPITAL RELIEF
Key
• Employment in last 6 years?
• Paid PAYE on Employment
Income?
Entitled to Income Tax Refund?!!
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SEED CAPITAL RELIEF
The Relief
• Refund of Income Tax
• Max of €100k per annum
• Previous 6 years
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SEED CAPITAL RELIEF
Conditions
• Investment in Shares
• Qualifying Company
• Creation of Employment
• Qualifying Employment
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SEED CAPITAL RELIEF
Other Matters
• 2nd Investment
• Conversion of Loans
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START UP RELIEF
03
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START UP RELIEF
• Overview
• Relief from Corporation Tax
• First 3 years Profits
• Incorporation and Commencement
• Employment Based Relief
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START UP RELIEF
The Relief
• Relief of up to €40,000
• Marginal Relief to €60,000
• Trading Profits
• Carry forward of losses
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START YOUR OWN BUSINESS RELIEF (SYOB)
04
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START YOUR OWN BUSINESS RELIEF (SYOB)
New Relief
• Introduced by Budget 2014
• Encouraged Innovation and Employment
• New Business
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START YOUR OWN BUSINESS RELIEF (SYOB)
The Relief
• Exemption from Income Tax
• Profits of first 24 months
• Limit of €40,000 per annum
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START YOUR OWN BUSINESS RELIEF (SYOB)
Qualifying Conditions
• Commerce to trade
• On or after 01 January 2014, and
• Before 31 December 2016
• Unincorporated business
• Unemployed for previous 15 months
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