The rules of the EIIS scheme changed significantly in successive Finance Acts since 2015. The biggest changes were introduced with effect from 1 January 2019 when self-certification was introduced. This means that instead of Revenue processing EIIS applications and certificates, the investee companies will now self-certify applications and issue certificates directly to investors when certain milestones are achieved. This should significantly reduce the time investors have to wait to receive their tax relief, although it moves the burden of risk from them to the companies. Great care needs to be taken both during the fund-raising process and during the investment term to ensure that the company is EIIS-compliant for as long as it has EIIS investors on the cap table.
Some very welcome changes have been introduced from the investors’ perspective in recent times, such as increasing the annual qualifying amount to €250,000 (€500,000 for investment terms of greater than 7 years) and the ability to claim all the relief in the year of investment rather than in two tranches.
There have also been key changes to the ability of founders and their associates to claim tax relief on their investments.
Managing Director, Laura Lynch, is one of Ireland’s leading experts on EIIS, having been heavily involved in the legislative process and written several articles on EIIS as it has evolved. Call us for a consultation, whether you are investor looking to claim EIIS on your investment or a company raising EIIS funds.
How can we help you?
Contact Laura Lynch & Associates or submit a business inquiry online.