The relief in respect of interest on existing loans will be phased out. For the tax year 2011 relief will be given in respect of 75% of the interest paid; for the tax year 2012 relief would be given in respect of 50% of the interest paid; for the tax year 2013 relief will be given in respect of 25% of the interest paid; and for the tax year 2014 and subsequent years the relief will be abolished. It should be noted that the Government's commitment to supporting investment in small and medium Irish companies by their owners and other potential investors is not diminished by the winding down of this inefficient and expensive relief. The new business investment targeting employment incentive will employ a better focused scheme of tax relief to incentivise owners and others to invest in small and medium Irish companies.

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