Ireland’s Minister for Finance, Paschal Donohoe, has announced the commencement of the Angel Investor Relief Scheme, designed to help innovative start-ups attract much-needed investment. This scheme provides Capital Gains Tax (CGT) relief to individual investors who back early-stage, innovative small and medium-sized enterprises (SMEs).
The relief offers a reduced CGT rate of 16% on gains from investments in qualifying companies, or 18% if the investment is made via a qualifying partnership. The relief applies to gains up to twice the investor’s initial investment, encouraging greater engagement from angel investors. This initiative is part of the government’s strategy to foster a robust investment ecosystem, particularly for start-ups facing challenges in securing funding.
Under the scheme, start-up companies can apply for certification from Revenue to confirm their eligibility. To obtain a certificate, the company may be assessed in collaboration with Enterprise Ireland, focusing on the business’s commercial innovation potential.
Minister Donohoe commented, “This is a significant step for Ireland’s start-up sector. It enhances our appeal to angel investors and further strengthens the ecosystem for innovative businesses to thrive.”
The Angel Investor Relief Scheme is a State-aid measure, compliant with the General Block Exemption Regulation (GBER), ensuring that Ireland’s tax incentives align with EU rules on state support.
For full application details and further information, businesses and investors can visit the official Revenue website.
