22 December 2016
Now is the ideal time to consider if you require tax relief for offset against your 2016 income tax bill. 40% tax relief is available with an investment in the Goodbody 2016 EIIS Fund.
Having just completed your 2015 income tax return, made your annual pension contribution and made an income tax payment to the Revenue, you might be asking yourself how can you reduce your tax bill for next year.
The Employment and Investment Incentive Scheme (“EIIS”) is one of the few remaining income tax reliefs. An EIIS investment can provide up to 40% tax relief on a qualifying investment and can be offset against all income including rental income which sets it apart from your annual pension contribution.
To qualify for the relief, an individual must make a qualifying investment in either a qualifying company or into a Revenue-approved designated investment fund. Most Irish SMEs can qualify for EIIS investment and there will be a range of options available between now and the end of the year. All EIIS investments must be held for a minimum of 4 years.
The following example shows how an EIIS investment of €25,000 creates initial tax relief of €7,500 in 2016 and further tax relief of €2,500 in 2020.
The Goodbody 2016 EIIS Fund
One option that we suggest you consider is to invest in a Revenue approve designated investment fund. The Goodbody 2016 EIIS Fund is professionally managed by Baker Tilly Hughes Blake and is a designated investment fund.
The fund is a joint venture with Goodbody and is now moving into its second year. We are aiming to raise up to €10 million before the end of the year.
The Goodbody 2016 EIIS Fund will look to invest in a wide range of eligible Irish companies including hotels, manufacturing businesses, nursing homes and wind farms. The fund will have money to invest from 1 January 2017 with investment allocations ranging from €1 million to €5 million in any one company.
Last year’s EIIS fund has had a successful year and expects to complete its final investment by the end of November. On completion, the 2015 Fund will have invested in four companies which include a logistics and supply-chain company, a hotel, a software company and a nursing home group.
If you would like to find out more about the Goodbody 2016 EIIS Fund or to get a copy of the Fund’s prospectus, then please don’t hesitate to give us a call or see www.eiismanagement.ie for more information.