Changes to Employment and Investment Incentive relief will make it more accessible and encourage additional investment
Finance Bill 2019
Finance Bill 2019 makes a number of changes to the Employment and Investment Incentive (EII) relief including:
- Full income tax relief in the year of investment now available, effective from 8 October 2019 - previously 75% relief was available in the year of investment with the remaining 25% relief being available in year 4 where certain conditions linked to employment or R&D activities of the company were met.
- The annual investment limit will be increased from €150,000 to €500,000 where the investor undertakes to retain the investment for a period of 10 years and €250,000 in all other cases, effective from 1 January 2020 onwards.
Commenting on the impact of these measures, Alison McHugh, Director, Tax, Deloitte commented:
For investments made from 8 October 2019 onwards there will no requirement to satisfy any conditions relating to future employment/R&D spend in order to qualify for the relief, which should make it more accessible.
In addition, the full relief will be available in the year of investment provided the investor has sufficient income. For individuals, the enhancement of this relief is welcome especially given there are very few total income reliefs currently available. This will also act as an incentive for investors to provide alternate funding to businesses by encouraging additional investment.
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