Taxes Consolidation Act 1997 section 472AA

Relief for long-term unemployed starting a business

Section 472AA provides a tax relief for long-term unemployed individuals who start a new business.

• The "Start Your Own Business Relief" scheme applied to new businesses commenced between 25 October 2013 and 31 December 2018 by individuals who had been continuously unemployed for at least 12 months immediately beforehand.
• Qualifying individuals may deduct from the profits of the new business an amount equal to the lesser of €40,000 (scaled to the qualifying months in the year) or the actual profits scaled by the same fraction — giving a maximum lifetime relief of €80,000 over the two-year qualifying period.
• The relief is given in priority to loss relief under section 382 and capital allowances under Part 9, and is capped at €40,000 per year of assessment.
• Any individual claiming the relief is a chargeable person and must file a self-assessment tax return; the relief reduces Case I or Case II profits only and does not apply for USC or PRSI purposes.