Owner investing in EIIS?

B

Ballina

Registered User
Messages
28
I started up a new company last year with my wife and myself as directors.I wont be in a position to start trading for another few months. So far its all money going out.Both if us are PAYE workers but I took 2012 off to start this business. My wife is the higher earner and she has all the tax allowances.We have invested €30,000 in this business to get it going. Can we claim the Tax Refund under the EIIS? Can we do it jointly or can only one of us claim and if so, which one would be the best to do it? I have got some assistance from the County Enterprise Board and they will give me a Cert for Revenue. A final question please, is the relief granted on one of the previous six years or on all the previous six years? Thank you for your help.
 
There are lots of rules - but essentially if you are in any way connected to the company (e.g. director, employee or in a position to control more than 30% of the voting rights) at any stage in a 3-year period, then you don't qualify for the EIIS.

It's aimed at providers of risk capital, to encourage them to take a punt, rather than aimed at the entrepreneurs themselves.
 
Re

I read somewhere that Directors are not disqualified from applying for the Seed Enterprise Investment Scheme. Might this be right?
 
Ballina said:
I read somewhere that Directors are not disqualified from applying for the Seed Enterprise Investment Scheme. Might this be right?
Click to expand...

I'd say you mean the Seed Capital Scheme. Have a look at IT15 here, maybe you'll qualify - I can't tell at first glance whether there is an upward limit on shareholding/control, but you may qualify. Someone else might be along tomorrow who's familiar with these schemes.
 
You can as a connected party and/or director invest in your own company under the EII but the paid up share capital of the company cannot exceed €500,000

You may be able to avail of both the Seed Capital Scheme and the EII but it is a tricky enough area so I'd get professional advice before applying.
 
You must log in or register to reply here.
Back
Top