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Business Expansion Scheme

Investing in Business Expansion Schemes are tax deductible.

Investments in qualifying companies or approved funds under the Business Expansion Scheme, from a minimum of €254 up to a maximum of €31,750, are tax deductible. The upper limit rises to € 150,000 from 1st January 2007.

The relief is available to both you and your spouse, providing you both have sufficient income in your own right to cover the investment. If the amount invested exceeds €150,000, or full relief cannot be obtained because of insufficiency of income, further relief can be obtained in later years. This scheme is set to end on 31st December 2013 unless it is extended beyond this date.

Tax relief is currently available to individuals only, as follows:-

Deduction of up to a maximum of €150,000 can be claimed against income for tax purposes by the individual in any one tax year, Relief is available at the higher income tax rate Unutilised investment can be carried forward for relief against future income Relief will be clawed back if you sell your shares within five years The full cost of the shares is allowable for capital gains tax purposes, when you sell your shares after five years.

The maximum amounts that can be raised are:

  • From 1 January 2007, a company may raise a maximum of €2,000,000 through the BES scheme subject to an upper limit of €1,500,000 in any one year.

The Companies that qualify most obey the following criteria:

  • the company must be incorporated and carry on its trade in the Republic of Ireland, the company must not be quoted on the Irish Stock Exchange, the investment must be in the form of ordinary share capital and carry no preferential rights, the ordinary share capital in question must be allotted as fully paid up, the company must commence trading within two years of the share issue, the company must carry out a qualifying trading activity, which include:- manufacturing internationally traded services research and development tading facilities in the IFSC docklands project.
    N.B. this is not a complete list and that some qualifying activities require certification by a government agency to qualify for Business Expansion Scheme purposes.

The individuals that qualify must obey the following criteria:

  • The individual must be resident in the Republic for the tax year in which relief is claimed, the individual must own less than 30% of the controlling shares of the qualifying company.

We can assist you to obtain this relief by finding the right BES company or BES fund for you as an individual investor, For companies, we can ensure your BES application is successful, We will also help you find investors for your company.

Business Expansion Scheme (Revised July 2001)
Click here to download (577K)

Our Services...

We will assist with the tax aspects of a BES scheme only both from the Company's point of view and that of the Individual's. 

Our work would include registration of the scheme and filing of relevant documentation.

Under the rules set out by the Irish Financial Services Regulatory Authority and Auditor regiatration, we do not assist in the fund raising process which forms the purpose of all Business Expansion Schemes.




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"I run my own business and after years of struggling with a demanding home life and a hectic work schedule I reached a situation whereby I was functioning poorly with both. I’d missed a couple of VAT payments and had intended to catch up at the end of the year. I missed my own deadlines and tried again to catch-up in the following year. Business became a stressful job of ‘fire-fighting’ each day’s demands, eventually pushing the issue of outstanding taxes out of my mind as much as possible, in order to concentrate on work.

That said, you always know in the back of your mind that these things don’t just go away and that it was just a matter of time before ‘they’ catch up with you. 

After a few years of letting my compliance payments slide altogether, the Revenue made contact with me and gave me an estimate of all PAYE, VAT and tax owed over the years – which ran to over 6 figures- and they wanted the money immediately. I knew I was in big trouble and looked in the Golden pages for an accountant who could help me. The name www.fixmytax.com jumped out of the page and I made contact. I was immediately reassured that they could help me. I was asked for “every bit of paper” concerning the office and all old Revenue correspondence.

The first thing fixmytax.com was to do was make contact with the Revenue on my behalf and assure them that they were handling the situation and that the liabilities were being established, even though it would take time. That took the immediate ‘knock-at-the-door’ shock and worry out of the situation. The coming weeks were spent only dealing with fixmytax, (not the Revenue) answering the odd question by phone and filling in more information for the accountant. Even though this was routine information, I was quite reassured by the fact that they were working on the whole Revenue mess and actually sorting through it for me. This took the panic and stress out of the situation and enabled me to concentrate on work. After a few weeks, accounts and figures had been prepared, which I went over with the accountant.

The accountant had dealt with the Revenue directly on my behalf and he saved over 60% off the original tax bill.

Throughout the process, the fixmytax accountant was hugely supportive to me, dealt directly with the Revenue, reduced the original tax bill considerably and most importantly, had taken the fear out of the situation and given me peace of mind knowing that good progress was being made with the Revenue, rather than hiding from it all.

The cost? Approximately 7% of the money SAVED on the original tax bill!

My Revenue mess caused me huge amounts of anxiety all the time I did nothing to resolve it. In dealing with fixmytax, they took control of the situation and proceeded to do what had to be done. I would not hesitate to recommend them to anyone worried about any aspect of taxation and financial planning for a business.

I now have a good relationship with the Revenue, fixmytax looks after not only the basics of compliance, but also the financial planning and regularly reviews the performance of the business. My business is now stronger and more focussed that ever before simply because of the level of ongoing collaboration and support that I have with fixmytax. They are the proverbial “good accountant” that every business needs.

My most valuable lesson in dealing with fixmytax is that it is far more productive and far less stressful to get a good supportive accountant to do what they do best, leaving me free to do business. Thanks, Patrick!

Satisfied Client, name and address with firm. 

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