Start Up Relief for Entrepreneurs (SURE)
If you are starting a new Business, you may be entitled to an income tax refund of up to 41% of the capital that you invest under SURE.
Depending on the size of your investment you may be entitled to a refund of income tax paid over the 6 years prior to year in which you invest.
The general conditions for SURE are that you must:
• It must be a new company carrying on a qualifying trading activity
• You should have mainly PAYE income in the previous 4 years.
• Take up full-time employment in the new company either as a Director or an Employee;
• Invest cash into the new company by way of purchase of new shares.
The Investor (You)
You must make an investment by purchasing new shares.
• You must hold the shares for a period of 3 years from the date of issue.
• You must hold at least 15% of the issued share capital of the company for 12 months after the issue of shares.
• Your income from previous years must have been mainly liable to PAYE. However income in the year immediately before the investment can be from any source.
• You must enter a full-time employment for a 12 month period with the company as an employee or a director.
(You cannot be employed elsewhere during this 12 month period)
• You must not receive any payments from the company other than reasonable remuneration and expenses in the 3 year period after the share issue.
• During the 12 months before your first investment in the company you must not have held more than 15% of the share capital, loan capital or voting rights of any other company.
You must not avail of SURE for the purposes of avoiding tax only.
• Neither you nor the company may enter into any agreement, arrangement or understanding which could reasonably be considered to eliminate the risk from your investment.
• Must be a Qualifying New Venture i.e. less than two years old and it must not have taken over an existing trade.
• Be tax resident in the State.
• Be a micro, small or medium-sized enterprise.
• Have its issued share capital fully paid up.
The Company must not:
• Have any special trading arrangements with your former employer company. Normal business transactions are, however, acceptable.
• Carry on a trade which is similar to any other trade in respect of which you have or have had a controlling interest.
• Be considered as a firm in difficulty for the purposes of the Community Guidelines on State aid for rescuing and restructuring firms in difficulty.
• Control or be controlled by any other company.