Lucinda Creighton (Dublin South East, Independent)
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64. To ask the Minister for Finance if he will support small businesses investment by introducing a scheme similar to the enterprise management incentive scheme in the UK, which is income tax-free, and ensures that a shareholding with a market value of up to €250,000 may be subjected to just 10% capital gains tax or if he will support other measures to encourage employees to become shareholders in the businesses in which they are working; and if he will make a statement on the matter. [39314/14]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy will be aware, my Department carried out a review of the Employment and Investment Incentive (EII) and Seed Capital Scheme (SCS) in advance of this year's Budget. This scheme provides income tax relief for risk capital investments in a broad range of SMEs. Part of the review of the incentive included a public consultation process. A report on this review was published on Budget Day and is available on the Budget website.

One of the options considered in the review was the introduction of a scheme similar to the UK EIS. However, I decided against it.

Having considered all of the issues raised in the report, I have decided to make the following amendments to the EII:



- The annual company limit is being increased from €2.5 million to €5 million and the lifetime limit from €10 million to €15 million;The minimum holding period for shares is being increased by 1 year to 4 years;

- Medium-sized companies in non-assisted areas will be included;

- Internationally traded financial services where certified by Enterprise Ireland will qualify;

- Hotels, guest houses and self-catering accommodation will remain eligible for a further 3 years; and

- The operating and managing of nursing homes will be included for 3 years.



These measures are subject to approval from the European Commission.

The SCS is being re-branded as "Start-Up Relief for Entrepreneurs" (SURE) and will be re-launched in the coming months.