As the Deputy will be aware, my Department carried out a review of the Employment and Investment Incentive (EII) and Seed Capital Scheme (SCS) in advance of this year's Budget. This scheme provides income tax relief for risk capital investments in a broad range of SMEs. Part of the review of the incentive included a public consultation process. A report on this review was published on Budget Day and is available on the Budget website.
One of the options considered in the review was the introduction of a scheme similar to the UK EIS. However, I decided against it.
Having considered all of the issues raised in the report, I have decided to make the following amendments to the EII:
- The annual company limit is being increased from €2.5 million to €5 million and the lifetime limit from €10 million to €15 million; The minimum holding period for shares is being increased by 1 year to 4 years;
- Medium-sized companies in non-assisted areas will be included;
- Internationally traded financial services where certified by Enterprise Ireland will qualify;
- Hotels, guest houses and self-catering accommodation will remain eligible for a further 3 years; and
- The operating and managing of nursing homes will be included for 3 years.
These measures are subject to approval from the European Commission.
The SCS is being re-branded as "Start-Up Relief for Entrepreneurs" (SURE) and will be re-launched in the coming months.
