Gerald Nash (Louth, Labour)
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87. To ask the Minister for Finance if he will bring the eligibility criteria for the relief scheme for the long-term unemployed, 15 months in receipt of certain social welfare payments, in line with the eligibility criteria for the back to work enterprise allowance 12 months in receipt of certain social welfare payments; and if he will make a statement on the matter. [48011/13]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, I announced the Start Your Own Business incentive in the recent Budget. This incentive is an exemption from Income Tax for individuals who have been long-term unemployed and start a new, un-incorporated business. An exemption from Income Tax will be provided on profits up to a maximum of €40,000 for the first two years of trading. However, USC and PRSI will continue to be payable. If a loss is incurred then loss relief will be available in the normal manner.

The business must be un-incorporated i.e., the individual must be a sole trader. In order to claim this relief, the individual must file a tax return notwithstanding that there may be no liability to tax. In the Budget speech I stated that the individual must have been unemployed for a period of at least 15 months prior to establishing the business. However, as I stated in my opening speech at Second Stage of the Bill, I have decided to reduce the qualifying period of unemployment to 12 months. This will be dealt with in a Committee Stage amendment.