Taxes Consolidation Act 1997 section 503

The relief: start-up capital incentive

Section 503 sets out the conditions for the start-up capital incentive, a particular form of EIIS relief that disapplies certain restrictions on associates of an investor where the qualifying company and the investment meet specified requirements.

• The qualifying company must be a micro-enterprise (as defined in Annex 1 of the General Block Exemption Regulation) and must exist solely to carry on a qualifying new venture.
• The company must not have commenced or prepared to carry on any trade or business more than 7 years before the share issue date, and must not have any partner or linked business.
• The maximum amount a qualifying company may raise under this relief is €500,000 in total in respect of eligible shares issued on or after 6 April 1984, including amounts raised under earlier versions of this relief.
• If the company and investment comply with these conditions, the restrictions in section 500(5) regarding associates of an investor do not apply.