As confirmed in the December issue of tax.point, the EII which came into effect on 25 November, and the BES scheme, both ran concurrently until the end of December. Revenue clarified in eBrief No. 74/11 the process for notifying them whether shares issued during December are to be treated as an EII or BES investment.

Where shares issued during 25 November to 31 December 2011, the qualifying company that issued the shares could elect in writing to the Revenue Commissioners, on or before 31 December 2011, to have the investment treated as a BES investment. Where the investment is made in a designated fund, the election must be made by the fund managers. Where no election was made on or before 31 December 2011, the investment will be treated as an EII investment.

An approach which would allow the two schemes to run in parallel was not envisaged originally. Difficulties arose because of the delay in securing approval from Brussels for the EII under the State Aid rules. This is a good example of where representations made by professional bodies such as Chartered Accountants Ireland, requesting a transition period from BES to EII, can result in improvements.

Further details are set out in Revenue eBrief No. 74/11. http://www.revenue.ie/en/practitioner/ebrief/2011/no-742011.html