EIIS Company The company must be a qualifying new venture not less than two years. It must not have taken over an existing trade. Formerly for EIIS it was required that Revenue’s issued a statement of qualification to the qualifying investors or the designated fund to confirm that the company was a qualifying company and that the investment was a qualifying investment. The Finance Act […]
Start-up relief for entrepreneurs (SURE) The broad principles are similar to those in respect of EIIS. The investment is made by a person who works in the company for at least 12 months. Relief for the investment is made against total income in the year of investment. The individual may elect to have the relief deducted from total income in any of the previous six […]
Investment Schemes The tax incentives for investment in new business ventures was amended substantially in 2018. The new scheme was to apply until 31 December 2021. The employment and investment incentives scheme and start-up relief for entrepreneurs (SURE) have some common features although they are aimed at different investors. EIIS allows relief for third-party investors. Sure allows relief for investors who are the principal or […]
Pre-2011 Investment Incentives The BES business expansion scheme relief allowed a deduction from income, up to the maximum amount in a year of €31,750. The person must subscribe for shares in a qualifying company. The relief was extended to the end of 2013, Detailed conditions apply to the investment and to the company in which it is made. The seed investment capital investment encourages persons […]
Relief on Tuition fees There is tax relief on certain tuition fees. That does not apply to registration fees examination fees and administration fees for third level courses. Revenue publish lists of approved courses and educational institutions. The equivalent public institutions and universities in other EU states also qualify. Certain such institutions outside the EU are covered in respect of postgraduate studies. The relief applies […]
Credits & Allowances The effect of tax credits is that relief is only available at the standard rate. Formerly there was a system of allowances by which the amount of allowances was deducted from taxable income. Some allowances are still available. The effect of allowances is that individuals who pay tax at the marginal rate receive proportionately more benefits, That is because this is because […]
Capital Allowances Capital allowances are generally allowed for plant, machinery cars and industrial buildings. In addition, capital allowances have also been allowed by way of incentives, for such expenditure as hotels, hospitals and nursing homes, buidings in urban and rural renewal areas, third level buildings and childcare facilities. There are different capital allowance rules for different categories of capital expenditure. Allowances for “plant” and machinery […]
Home Renovation Scheme The home renovation incentive scheme provided a tax credit at 13.5% of expenditure incurred by home owners between 25 October 2013 and 31 December 2018 on the repair, renovation and improvement of a principal private residence. An individual could claim a tax credit in respect of payments to a qualifying contractor of qualifying expenditure. The person’s income was reduced by claiming a […]
New Property Allowances At the turn of the century numerous property inventive allowances existed. See the separated chapters. Many were later criticised as unnecessary and contributed to the property boom 1994-2007. Most allowances are being phased out in the period to 2006. There are was pressure to allow approved projects to proceed. Most new property incentive reliefs were terminated in 2006 with the maximum possible […]
Capital Allowances Depreciation and other provision for capital expenditure, are not allowed as a deduction in calculating the profits of a for income or corporation tax purpose. The financial accounts must therefore be adjusted to add back amounts for depreciation, amortization and other write off of capital expenditure over time Tax law allows for capital allowances” as a deduction for certain, but not all capital […]
Hotel and Holiday Cottages Capital allowances are granted for expenditure on hotels over 25 years at an annual 4% rate. Formerly, hotels qualified for accelerated capital allowances over seven years. This is now available, only provided that a certificate is given by the tourism authority (Tourism Ireland) in relation to the expenditure, certifying that it qualifies as a small or medium-size enterprise, in accordance with […]
Balancing Charges and Allowances A balancing charge or allowances arise where the an industrial property is sold within the write off period (usually 25 years from the date of expenditure). After this period has expired no balancing charge or balancing allowance arises. This is in contrast to the position with plant and machinery. Balancing charges or allowances may also arise; where the building is demolished […]
The Knowledge Box Regime The Finance Act 2015 introduced a knowledge development box regime. A 6.25% tax rate applies to profits from qualifying assets earned by an Irish company carrying on a specified trade. The profits available are the proportion of the profits of the specified trade that the expenditure on qualifying assets bears to total costs incurred to develop the qualifying assets. It is […]