The Irish Minister for Finance announced the Budget on 12 October 2021. Buried within the detail is a welcome statement for growth companies.
Finance Bill 2021 will extend the range of funds which can be used to access the Enterprise and Employment Incentive ("EII"). This measure is something that the Maples Group, in tandem with others in Scale Ireland, have been working on for a number of months.
EII is a scheme which provides tax relief to investors in start-up companies. Historically only limited and inflexible forms of funds could be used to access EII relief. The Minister's statement indicates that investors in modern forms of private equity funds will now be able to access the relief. This should increase the ability of individual investors to collectively invest in EII companies. It will also increase the range of funds and managers which can offer their services to investors. Most importantly, it is intended to greatly increase the investment in early-stage Irish enterprises.
More detail will be made available in the Finance Bill but this change represents a great opportunity for investors seeking attractive options and start up companies in need of capital.
More significantly, and following consultation with relevant stakeholders, I intend to open up the scheme to a wider range of investment funds and I am confident that this measure on its own will result in greater investment in early stage enterprises