Taxes Consolidation Act, 1997 (Number 39 of 1997)
[21]>
[14]>
490 Limits on the relief.
[ITA67 s195B(3) and (6); FA84 s13(1) to (2C); FA87 s9; FA93 s10(1) and s25(c)(i); FA96 s18]
(1) (a) Subject to section 508 and paragraph (b), the relief shall not be given in respect of any amount subscribed by an individual for eligible shares issued to the individual by any company in any year of assessment unless the amount or total amount subscribed by the individual for the eligible shares issued to the individual by the company in that year is [3]>[3]>€250<[3] or more.[7]>£200<[7][7]>£148<[7]<[3]
(b) In the case of an individual who is [15]>a married person assessed to tax for a year of assessment in accordance with section 1017,<[15][15]>a married person assessed to tax for a year of assessment in accordance with section 1017, or a civil partner assessed to tax for a year of assessment in accordance with section 1031C,<[15] any amount subscribed by the individual’s [16]>spouse<[16][16]>spouse or civil partner<[16] for eligible shares issued to that [16]>spouse<[16][16]>spouse or civil partner<[16] in that year of assessment by the company shall be deemed to have been subscribed by the individual for eligible shares issued to the individual by the company.
(2) The relief shall not be given to the extent to which the amount or total amount subscribed by an individual for eligible shares issued to the individual in any year of assessment (whether or not by the same company) exceeds [4]>[8]>£25,000<[8][8]>£18,500<[8]<[4][11]>[4]>€31,750<[4]<[11][11]>€100,000 in the case of a relevant investment, or €150,000 in any other case<[11] .
(3) (a) Where in any year of assessment a greater amount of relief would be given to an individual in respect of the amount or the total amount subscribed by the individual for eligible shares (in this subsection referred to as “the relevant subscription”) issued to the individual in that year or, where [9]>section 489(4) [5]>or (4A)<[5]<[9][9]>subsection (4), (4A)[12]>or (4B)<[12][12]>, (4B) or (4C)<[12] of section 489<[9] applies, in the following year of assessment but for either or both of the following reasons—
(i) an insufficiency of total income, or
(ii) the operation of subsection (2),
the amount of the relief which would be given but for those reasons less the amount or the aggregate amount of any relief in respect of the relevant subscription which is given in that year of assessment shall be carried forward to the next year of assessment, and shall be treated for the purposes of the relief as an amount subscribed directly by the individual for eligible shares issued to the individual in that next year.
(b) This subsection shall not apply for any year of assessment subsequent to [1]>the year 1998-99<[1][2]>[1]>the year 2000-01<[1]<[2][2]>the year of assessment [6]>2001<[6][10]>[6]>2003<[6]<[10][13]>[10]>2006<[10]<[13][13]>2013<[13]<[2].
(4) (a) If and in so far as an amount once carried forward to a year of assessment under subsection (3) (and treated as an amount subscribed directly by an individual for eligible shares issued to the individual in that year of assessment) is not deducted from his or her total income for that year of assessment, it shall be carried forward again to the next year of assessment (and treated as an amount subscribed directly by the individual for eligible shares issued to the individual in that next year), and so on for succeeding years of assessment.
(b) This subsection shall not apply for any year of assessment subsequent to [1]>the year 1998-99<[1][2]>[1]>the year 2000-01<[1]<[2][2]>the year of assessment [6]>2001<[6][10]>[6]>2003<[6]<[10][13]>[10]>2006<[10]<[13][13]>2013<[13]<[2].
(5) The relief shall be given to an individual for any year of assessment in the following order—
(a) in the first instance, in respect of an amount carried forward from an earlier year of assessment in accordance with subsection (3) or (4) and, in respect of such an amount so carried forward, for an earlier year of assessment in priority to a later year of assessment, and
(b) only thereafter, in respect of any other amount for which relief is to be given in that year of assessment.
<[14]
[14]>
490 Limits on the relief.
(1) (a) Subject to section 506 and paragraph (b), the relief shall not be given in respect of any amount subscribed by an individual for eligible shares issued to the individual by a qualifying company in any year of assessment unless the amount or total amount subscribed by the individual for the eligible shares issued to the individual by the company in that year is €250 or more.
(b) In the case of an individual who is [17]>a married person assessed to tax for a year of assessment in accordance with section 1017,<[17][17]>a married person assessed to tax for a year of assessment in accordance with section 1017, or a nominated civil partner assessed to tax for a year of assessment in accordance with section 1031C,<[17] any amount subscribed by the individual’s [18]>spouse<[18][18]>spouse or civil partner<[18] for eligible shares issued to that [18]>spouse<[18][18]>spouse or civil partner<[18] in that year of assessment by the company shall be deemed to have been subscribed by the individual for eligible shares issued to the individual by the company.
(2) The relief shall not be given to the extent to which the amount or total amount subscribed by an individual for eligible shares issued to the individual in any year of assessment (whether or not by the same company) exceeds €100,000 in the case of a relevant investment, or €150,000 in any other case.
(3) (a) Where in any year of assessment a greater amount of relief would be given to an individual in respect of the amount or the total amount subscribed by the individual for eligible shares (in this subsection referred to as the “relevant subscription”) issued to the individual in that year or, where subsection (3) of section 489 applies, in the following year of assessment but for either or both of the following reasons—
(i) an insufficiency of total income, or
(ii) the operation of subsection (2),
then the amount of the relief which would be given but for those reasons less the amount or the aggregate amount of any relief in respect of the relevant subscription which is given in that year of assessment shall be carried forward to the next year of assessment, and shall be treated for the purposes of the relief as an amount of relief under section 489(2)(a) in respect of an amount subscribed directly by the individual for eligible shares issued to the individual in that next year.
(b) This subsection and subsection (4) shall not apply for any year of assessment subsequent to the year of assessment [19]>2013<[19][19]>2020<[19].
(4) If and in so far as an amount once carried forward to a year of assessment under subsection (3) (and treated as an amount of relief under section 489(2)(a) in respect of an amount subscribed directly by an individual for eligible shares issued to the individual in that year of assessment) is not deducted from his or her total income for that year of assessment, it shall be carried forward again to the next year of assessment (and treated as an amount of relief under section 489(2)(a) in respect of an amount subscribed directly by the individual for eligible shares issued to the individual in that next year), and so on for succeeding years of assessment.
(5) The relief shall be given to an individual for any year of assessment in the following order—
(a) in the first instance, in respect of an amount carried forward from an earlier year of assessment in accordance with subsection (3) or (4) and, in respect of such an amount so carried forward, for an earlier year of assessment in priority to a later year of assessment, and
(b) only thereafter, in respect of any other amount for which relief is to be given in that year of assessment.
<[14]
<[21]
[21]>
490. Qualifying companies
(1) In this Part, a company shall be a qualifying company if it is incorporated in the State or in another EEA State and, in either case, complies with this section and section 491.
(2) At the time the eligible shares are issued—
(a) the RICT group shall—
(i) be an SME, and
(ii) not be an undertaking in difficulty,
(b) each company in the RICT group shall—
(i) be unlisted, and no arrangements shall be in existence at that time in relation to the company becoming a listed company, and
(ii) not be subject to an outstanding recovery order following a previous decision of the Commission that declared an aid illegal and incompatible with the internal market,
and
(c) the company shall hold a tax clearance certificate within the meaning of section 1095.
(3) Throughout the relevant period—
(a) the company shall—
(i) be resident in the State, or resident in an EEA State other than the State and carry on, or intend to carry on, relevant trading activities from a fixed place of business in the State, and
(ii) not at any time—
(I) control (or together with any person connected with it control) another company other than a qualifying subsidiary, or
(II) be under the control of another company (or of another company and any person connected with that other company), unless such control is exercised by the National Asset Management Agency, or by a company referred to in section 616(1)(g),
and no arrangements shall be in existence at any time in that period by virtue of which the company could fall within clause (I) or (II),
(b) no company in the RICT group shall have any part of its issued shares not fully paid up.
(4) (a) The company shall be—
(i) a company which exists wholly for the purpose of carrying on relevant trading activities, or
(ii) a company whose business consists wholly of—
(I) the holding of shares or securities of, or the making of loans to, one or more qualifying subsidiaries of the company, or
(II) both the holding of such shares or securities or the making of such loans and the carrying on of relevant trading activities where relevant trading activities are carried on from a fixed place of business in the State.
(b) Where a company raises any amount through the issue of eligible shares for the purposes of raising money for relevant trading activities which are being carried on by a qualifying subsidiary or which such a qualifying subsidiary intends to carry on, the amount so raised shall be used for the purpose of acquiring eligible shares in the qualifying subsidiary and for no other purpose.
(5) Subject to subsection (6), a company shall be regarded as having ceased to comply with this section if, before the end of the relevant period, a resolution is passed, or an order is made, for the winding up of the company (or, in the case of a winding up otherwise than under the Companies Act 2014, any other act is done for the like purpose) or the company is dissolved without winding up.
(6) A company shall not be regarded as ceasing to comply with this section by reason only of the fact that it is wound up or dissolved without winding up if—
(a) it is shown that the winding up or dissolution is for bona fide commercial reasons and not part of a scheme or arrangement the main purpose or one of the main purposes of which is the avoidance of tax, and
(b) the company’s net assets, if any, are distributed to its members before the end of the relevant period or, in the case of a winding up, the end (if later) of 3 years from the commencement of the winding up.
<[21]
[7]
Substituted by FA01 sched2(25)(a). Shall apply only as respects the year of assessment 2001.
[8]
Substituted by FA01 sched2(25)(b). Shall apply only as respects the year of assessment 2001.
[9]
Substituted by FA04 s18(1)(b)(i). Has come into operation and have taken effect as on and from 1 January 2004.
[10]
Substituted by FA04 s18(1)(b)(ii). Has come into operation and have taken effect as on and from 1 January 2004.
[13]
Substituted by FA07 s19(1)(c)(iii). With effect from 1 January 2007 per SI 614 of 2007.
[14]
Substituted by FA11 s33(1)(a). Has effect in respect of shares issued on or after 25 November 2011. Note: FA 12 s26 (2) amends FA 11 s33 and provides: (b) This section does not have effect in respect of shares issued before 25 November 2011 and, for all the purposes of Part 16 in connection with those shares, the Principal Act has effect as if this section had not been enacted. (c) This section does not have effect in respect of shares issued on or after 25 November 2011 and on or before 31 December 2011 where— (i) the company issuing the shares, or (ii) where the shares are acquired by an investment fund, the fund acquiring the shares, elects by notice in writing to the Revenue Commissioners on or before 31 December 2011 that, for all the purposes of Part 16 in connection with those shares, the Principal Act has effect as if this section had not been enacted.
[19]
Substituted by FA13 s22(1)(c). Comes into operation on such day or days as the Minister for Finance may by order or orders appoint and different days may be appointed for different purposes or different provisions.
[20]
Substituted by FA13 s21(1)(c). Comes into operation on such day or days as the Minister for Finance may by order or orders appoint and different days may be appointed for different purposes or different provisions.