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Our Employment and Investment Incentive Scheme Funds

Submitted by bdoieadmin on Mon, 2010-10-25 16:02

The Employment and Investment Incentive Scheme (“EII Scheme”) is the reformed and revamped Business Expansion Scheme (“BES”). It is a tax relief incentive scheme which provides tax relief to eligible Investors for investments in certain qualifying small and medium sized trading companies (“SMEs”)*.

The EII Scheme offers one of the few remaining tax reliefs and is one of the few sources of total income relief (which includes, for e.g. rental income and deposit income).

How does it differ from BES?

The main differences between the EII Scheme and the former BES are:

  • Shorter investment term - 3 years compared to 5 years
  • Avail of tax relief of up to 41%* - 30% in the year of investment and a further 11% in the year following the 3 year investment period
  • Wider scope of companies can now avail of funding under the EII Scheme - The new scheme is available to the majority of SMEs** as opposed to the BES which was restricted to manufacturing and internationally traded services companies
  • Significantly increased company investment limits - a qualifying company can raise up to €10 million under the EII Scheme (previously €2 million).

The Davy EII Tax Relief Fund

We are pleased to inform you that we have launched The Davy EII Tax Relief Fund.

The closing date for subscriptions is 31 December 2011 or earlier in the event of excess demand.

Download our booklet (PDF, 948KB).

Please click on the button below to view the prospectus.

Davy Fund

If you would like to receive a hard copy of the prospectus please email ctyrrell@bdo.ie.

If you have any queries please contact Claire Tyrrell on 01 470 0455 or Davy on 01 614 9000.

Why invest in the Davy EII Tax Relief Fund?

  1. Avail of one of the few remaining all income tax deductions offering up to 41% tax relief*.
  2. Help reduce your risk exposure by investing in a managed fund which:
    • Spreads your investment over a portfolio of strong and performing companies
    • Focuses on established, indigenous Irish companies with future growth potential, and
    • Invests in a range of industries which will help reduce exposure to any one sector.
  3. Avail of a professional, experienced and knowledgeable investment team.

* - Terms and conditions apply. Relief on an investment in the Fund is available to Investors in two tranches. Investors can deduct 30/41’s of the amount subscribed (i.e. an effective rate of 30%) to the Fund from their total income for income tax purposes for either the tax year of subscription ending on 31 December 2011, or if so desired the tax year of investment by the Fund ending 31 December 2012 and Investors can deduct 11/41’s of the amount subscribed (i.e. an effective rate 11%) from their total income for income tax purposes in the year of assessment following the end of the three year investment/relevant period, subject to conditions in relation to employment levels or expenditure on research and development being achieved. You should consult your tax advisor about the rules that apply in your individual circumstances. This investment may not be suitable for all investors. For more information, please refer to The Relief herein on page 18.

** - Exceptions apply. For more information, please refer to Relevant Trading Activities on page 17 of the prospectus.

Our EII Scheme funds can offer a range of benefits to both investors and companies seeking investment. To find out more, click on the following:

For further information on any of our services or if you have any queries, contact a member of the Corporate Investment & Business Advisory team.