Why invest in BES
The Business Expansion Scheme (BES) in Ireland is a state-aid tax relief scheme. It gives the investor the added advantage of up to 41% tax relief when investing in companies on the scheme. The scheme helps expanding businesses raise capital through private investment. It was announed by Minister of Finance in 2007 has been approved by the European Commission.
The investor can deduct the investment from his/her taxable income every year up to 2013 and there is no capital gains tax (CGT) on the sales of the shares. Investors can invest any amount from €5,000 up to €150,000 per year.
Investor Qualification Required
- Must be resident of the State
- Is not connected with the company, does not control the company
- Applies for the shares on his/her own behalf
- Shares must be held for at least five years to qualify for full tax relief
There are other criteria pertaining to specific individuals, please see revenue.ie for full details.
BES Participation Conditions
- Is a Micro, Small or Medium Sized Enterprise
- Incorporated in Ireland or another European Economic Area State
- Is resident of the State
- Is not regarded as a firm in difficulty
- Not quoted on the stock exchange (except Irish Enterprise Exchange)
- Is engaged in a qualifying trade
- Has its issued share capital fully paid up
Medium-sized enterprises are restricted to non-assisted areas and must be in Seed/Startup of development to qualify.
Qualified Activities:
- Manufacturing
- Internationally traded Services
- Tourism
- Research & Development
- Plant cultivation activities
- Construction
- Certain music recording activities
See The Business Expansion Scheme (BES) - Relief for Investment in Corporate Trades - IT 55 for the full rules