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• Revamp For Business Expansion Scheme

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  Helena Deane    Group moderator

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  Revamp For Business Expansion Scheme

  Proposals have been put forward to reform the Government’s tax relief incentive scheme for investors to help stimulate growth and employment creation in small and medium-sized enterprises.
  
  The Business Expansion Scheme (BES) provides tax relief on investments made in micro, small and medium sized enterprises operating within certain sectors. The scheme, which is managed by Revenue and has operated in its current format since 2007, operates through the EU State Aid framework and is governed by State Aid restrictions. The scheme allows investors to receive income tax relief on investments up to the value of €150,000 per annum, with a limit of €2 million of BES investment per company.
  
  The Government has put forward proposals to reform the scheme to incentivise investment in Ireland’s SMEs, with the aim of stimulating economic growth and the creation of additional employment opportunities.
  
  Subject to approval by the European Commission, the scheme will be renamed the Employment and Investment Incentive (EII), and limits for both the overall amount of BES investment per company and the maximum allowable amount that can be raised in one year will be raised, from €2 million to €10 million and €1.5 million to €2.5 million respectively.
  
  The period that investments must be held for will be reduced from five years to three years – although the maximum tax relief will fall from 41 per cent to 30 per cent.
  
  (Irish Times)
  
  • 05 Feb 2011, 12:43 am
  Helena Deane wrote: > Proposals have been put forward to reform the Government’s tax relief > incentive scheme for investors to help stimulate growth and > employment creation in small and medium-sized enterprises. > > The Business Expansion Scheme (BES) provides tax relief on > investments made in micro, small and medium sized enterprises > operating within certain sectors. The scheme, which is managed by > Revenue and has operated in its current format since 2007, operates > through the EU State Aid framework and is governed by State Aid > restrictions. The scheme allows investors to receive income tax > relief on investments up to the value of €150,000 per annum, with a > limit of €2 million of BES investment per company. > > The Government has put forward proposals to reform the scheme to > incentivise investment in Ireland’s SMEs, with the aim of stimulating > economic growth and the creation of additional employment > opportunities. > > Subject to approval by the European Commission, the scheme will be > renamed the Employment and Investment Incentive (EII), and limits for > both the overall amount of BES investment per company and the maximum > allowable amount that can be raised in one year will be raised, from > €2 million to €10 million and €1.5 million to €2.5 million > respectively. > > The period that investments must be held for will be reduced from > five years to three years – although the maximum tax relief will fall > from 41 per cent to 30 per cent. > > (Irish Times)