Taxes Consolidation Act 1997 section 488

Interpretation (Part 16)

Section 488 defines the key terms used throughout the employment investment incentive (EIIS) provisions in Part 16.

• The section defines the compliance period as covering a pre-investment period of two years before shares are issued (or from incorporation of the first company in the RICT group, if later) and a relevant period of four years after the shares are issued.
• Organisational innovation and process innovation are defined as genuinely new methods or significant improvements in business practices, production, or delivery, but exclude minor changes, simple capital replacement, strategy shifts, mergers and acquisitions, and changes driven solely by market conditions.
• Relief under Part 16 covers the employment investment incentive (EIIS) under section 502, the start-up capital incentive (SCI) under section 503, and start-up relief for entrepreneurs (SURE) under section 507, each operating as a deduction from total income.
• Terms used in Part 16 that also appear in the General Block Exemption Regulation (GBER) carry the same meaning as they have in that Regulation, ensuring alignment with EU state aid rules.