Relief for investment in innovative enterprise

Overview

This Capital Gains Tax (CGT) relief for individuals is an incentive scheme for investment in early-stage innovative companies. The scheme helps innovative trading companies to attract equity-based finance from individual investors. The scheme applies to investments made up to 31 December 2026.

A company which meets the requirements of the scheme may apply to Revenue for Certificates of Qualification. The Certificates of Qualification are two documents:

• A Certificate of Going Concern.
• A Certificate of Commercial Innovation.

For the purposes of this relief, a company that holds the Certificates of Qualification is known as a 'qualifying company'. The qualifying company gives copies of these certificates to the investor when the investment is made. Those investors may claim a reduced rate of CGT on gains from the disposal of those investments.

The relief is compliant with the General Block Exemption Regulations (GBER) so, therefore, the provisions of the State aid regulation apply.

A company may raise GBER compliant risk finance investments through the Part 16 reliefs or this relief. The maximum amount that a company and its Relief for Investment in Corporate Trades (RICTs) or relief group may raise through GBER compliant risk finance is:

• €5.5 million in any 12-month period
• or
• €16.5 million over the lifetime of the company.

For details of the relief as it applies to investors, please see Relief for investment in innovative enterprises for individuals.

Next: Requirements for certification (company)