Simon Harris (Wicklow, Fine Gael)
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I move amendment No. 55:

In page 48, between lines 35 and 36, to insert the following:“(d) in section 492(3) by substituting “4 years” for “3 years”,”.

One of the changes the Minister for Finance is making to the employment and investment incentive is to increase the minimum holding period for shares from three to four years. Section 492 of the Taxes Consolidation Act 1997, which deals with the qualifying conditions for the EII as they relate to so-called connected persons, currently states that an individual will qualify for tax relief on an EII investment as long as they are not connected to the company at any time during a three-year holding period for shares. This amendment will amend that provision to align it with the change in the holding period announced in the budget. Without this amendment, it would be technically possible for an individual to have their EII scheme investment repaid a year earlier than the intended four-year holding period. This is, effectively, a drafting oversight from the changes that the Minister announced on budget day.