Tax Tip: EII Scheme
EII Scheme – Employment and Investment incentive
The Employment and Investment incentive (EII) scheme is an income tax relief for investments in certain types of company. The scheme gives investors an income tax deduction on investments up to a maximum of €150,000 in a tax year.
You initially get relief at 30% with a further 10% relief available where it can be shown that employment levels have increased at the company at the end of a minimum holding period or where the company used capital raised for increased expenditure on research an development.
Take-up on this scheme has been limited, but it can be worthwhile if you have the capacity to make what is often a higher-risk investment. It has a sister relief known as SURE, the Start-up-refunds for Entrepreneurs, which is aimed at individuals starting their own company.
