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Tax Incentives For Risk Investments

Risk Investments attract tax relief.

There are three tax incentives to encourage risk investment in Irish industry and business:

  • Relief for seed capital investment by new entrepreneurs (including redundant workers) click here
  • Relief for additional own capital investment by original entrepreneurs
  • Relief for investment in research and development projects.

These releifs are given under business expansion rules and are set to terminate on 31st December 2005 unless they are extended for a further term.

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Business Expansion Scheme and Seed Capital Scheme Income Tax Relief for Investment in Corporate Trades

Income Tax Relief for Investment in Corporate Trades - Business Expansion Scheme and Seed Capital Scheme..click on link below

CONTENTS

  • Relief for Investment in Corporate Trades
  • Claims for RICT/Film Relief and Retirement Annuity Relief
  • The Seed Capital Scheme
  • The Business Expansion Scheme
  • Direct Taxes: Incentives
  • BSE Relief

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

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Patents, Scientific and Certain Other Research, Know-How and Certain Training

1. Patents, contents:

  • Interpretation
  • Annual allowances for capital expenditure on purchase of patent rights
  • Effect of lapse of patent rights
  • Charges on capital sums received for sale of patent rights
  • Relief for expenses
  • Spreading of revenue payments over several years
  • Capital sums: effect of death, winding up and partnership changes
  • Manner of making allowances and charges
  • Application of Chapter 4 of Part 9

2 Scientific and certain other research, contents: 

  • Interpretation
  • Deduction for revenue expenditure on scientific research
  • Allowances for capital expenditure on scientific research
  • Tax Credit for research and development expenditure, etc.
  • Tax credit on expenditure on buildings or structures used for research and development.
  • Payment to universities and other approved bodies for research in, or teaching of, approved subjects

3  Know-how and certain training, contents: 

  • Allowance for know-how
  • Relief for training of local staff before commencement of trading

4  Transmission Capacity Rights, contents:

  • Interpretation
  • Annual allowances for capital expenditure on purchase of capacity rights
  • Effect of lapse of capacity rights
  • Manner of making allowances and charges
  • Application of Chapter 4 of Part 9
  • Commencement (Chapter 4)

Notes on Research and Development
Click here to download (298K)




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Testimonials

"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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