The second Revenue tax briefing of the year deals with changes made by Finance Act 2013 to the three year tax exemption for start-up companies which allows any relief not availed of in the first 3 years of trading, due to losses or insufficiency of profits, to be carried forward for use in subsequent years.

Tax Briefing Issue 02 sets out how to calculate the amount of the unused relief available to carry forward taking into account the restriction based on employer PRSI contributions and how to use the relief available. The relief is provided for by section 486C (4A) of the Taxes Consolidation Act 1997.

Appendices to the Tax Briefing set out examples on the carry forward provisions and calculation of marginal relief which applies where the corporate tax liability is between €40,000 and €60,000.

Tax Briefing Issue 02 is available here.