The Employment and Investment Incentive Scheme (Formally BES)

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The government has announced its intention to revamp the existing Business Expansion Scheme (BES) and rename it the Employment and Investment Incentive Scheme (EII)

The current BES scheme is a tax relief incentive scheme that encourages investment in qualifying companies by offering income tax relief to investors on investments up to €150,000. Under the existing BES scheme the maximum amount that a company can raise is €2 million and the maximum in any one year is €1.5 million.

I believe that these limits are overly restrictive in relation to investors and qualifying companies concerned and would propose the following for the new Employment and Investment Incentive Scheme (EII):

1. A broadening of the criteria by which business can qualify for the scheme thus allowing more participation.
2. An increase in the aggregate funds that can be raised to €5 million.
3. An increase in the annual amount that can be raised to €2.5 million.
4. Simplification of the approval process.

The detail in relation to the new Employment and Investment Incentive Scheme (EII) will be published in the upcoming Finance Act.

For further information, please contact Brian Dignam, Partner, OSK

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