The Employment and Investment Incentive Scheme (EIIS) is a tax relief investment scheme offering higher-rate taxpayers an opportunity to efficiently shelter a portion of their taxable income using EIIS relief. Investors can deduct the cost of their qualifying investment from their total income for income tax purposes and reduce their income tax liability. It was launched in 2011 as a replacement for the Business Expansion Scheme (BES).
The key attractions of EIIS relief are:
- EIIS is one of the few sources of Total-Income Relief available.
- EIIS is a short-term, one-off decision.
- EIIS relief is available in two tranches:
- Thirty fortieths of the amount subscribed is available in year one (or in subsequent years if not used).
- Additional relief of ten fortieths of the amount subscribed is available after year three, at the marginal rate of tax applying at that date, subject to the requirement that the -
- Company must prove additional employment was created, OR
- Company must prove the capital raised was used for expenditure on R&D.
- Funds are required to be committed for a minimum of four years under current taxation legislation.
- The Investor’s exposure is limited to the up-front equity investment.
- The Investor does not need to have recurring tax exposure.
- Tax relief for the full €150,000 investment is no longer restricted under the High Income Earner Restriction and can be claimed on the full amount invested – up to the maximum allowable investment of €150,000 – in the year of investment.
We are currently assessing projects for 2017. If you are interested in raising finance via EIIS or getting advice on tax structuring an EIIS investment please contact our Tax Director Anne Hogan who will be happy to discuss our service offering. Email email@example.com or ring 061 208050.
HLB McKeogh Gallagher Ryan are one of the country’s most experienced EIIS advisers on both sides of the transaction, marketing suitable EIIS (and previously BES) investments to investors seeking to reduce their tax liability and also fundraising, structuring and monitoring investments on behalf of promoters. Mary McKeogh has been involved in raising and investing over €30m through BES – via private placing and designated investments funds.
2016 EIIS PRIVATE PLACINGS IN CAHERMURPHY WINDFARM AND GARRYMORE WINDFARM
Building on our success in 2015 we once again fundraised for two separate wind farm EIIS projects in the latter half of 2016. We raised nearly €3m for investment in Cahermurphy Windfarm located in County Clare and Garrymore Windfarm located in County Donegal.
Both projects offered investors a return of €1.15 for every Euro invested and had five year investment terms. The projects were well structured and run by experienced, professional promoters. Investors once again appreciated the solid fundamentals each project had in place and the clarity of their business models.
2015 EIIS PRIVATE PLACINGS IN TULLABRACK ENERGY LIMITED AND METRO ENERGY LIMITED
HLB McKeogh Gallagher Ryan were delighted to record our most successful EIIS fundraising to date in 2015. After noting an increased appetite for solid wind farm EIIS projects in 2014 we fundraised for two separate wind farms raising over €2.7m – a second round of EIIS investment for Tullabrack Windfarm in Co Clare and a new EIIS project Metro Energy Ltd’s Kilberehert Windfarm in Co Cork.
In 2015 there was a strong appetite among tax payers and investors for solid EIIS projects. Both projects had sound fundamentals including power purchase agreements in place, full planning permission, bank Heads of Terms in place, and Gate 3 grid connection offers which offered investors a level of comfort around each project.
2014 EIIS PRIVATE PLACING IN TULLABRACK ENERGY LIMITED
2014 was a very successful year for EIIS fundraising, with HLB McKeogh Gallagher Ryan exceeding our targets by raising in excess of €2,000,000 for the Tullabrack Windfarm Project, a medium-scale windfarm developed by one of our regular promoters, a senior wind sector expert with who has over fifteen years’ extensive experience in the industry.
2013 EIIS PRIVATE PLACING IN KILMEEDY WINDFARM LIMITED
2013 saw us build on the success of our 2012 fundraising for Kilmeedy Windfarm Ltd fundraising a second tranche, with circa €1.2m EIIS funds raised.
2012 EIIS PRIVATE PLACING IN KILMEEDY WINDFARM LIMITED
In 2012 HLB McKeogh Gallagher Ryan (or McKeogh Gallagher Ryan Accountants as we were then called) launched our first EIIS fundraising project for Kilmeedy Windfarm Limited, a 4.6 Megawatt (MW) wind farm located outside Newcastle West, Co Limerick. We successfully raised nearly €1m.