Taxes Consolidation Act 1997 section 508J

Relief for investment through designated investment funds

Section 508J provides for EIIS relief where investments are made through a designated investment fund or a qualifying investment fund, rather than directly in a qualifying company.

• Where fund managers subscribe for shares as nominee for an individual and the amount subscribed forms part of a designated or qualifying investment fund, EIIS relief is given to the individual investor under section 502; however, relief is not available where fund managers subscribe as nominee through any other type of investment fund.
• Fund managers must, within 30 days of receiving a statement of qualification, electronically file with Revenue a return of the holdings of eligible shares shown on those statements.
• When an individual claims relief for shares issued to fund managers as nominee, the claim must be accompanied by a certificate from the fund managers confirming that they hold the relevant statements of qualification issued by the companies concerned.
• Where the eligible shares are issued in the tax year following the year in which the amount was subscribed to the fund, the individual may still claim a deduction from total income for the earlier year in which the subscription was made.