Tax relief for family backing new businesses

SCI helps new micro-enterprises attract investment from family members such as a spouse or civil partner, ancestor, lineal descendant or sibling.

You may be eligible if: 

• You are a micro-enterprise employing fewer than 10 people.

• You are carrying out a qualifying new venture. 

• You have not commenced or made preparations to commence carrying on any trade or business more than seven years before the share issue date. 

• You do not have any partner or linked enterprises. 

Eligibility is subject to terms and conditions which can be found on the Revenue website. 

• Your company can raise up to €500,000 in its lifetime from family members which is not available under the Employment Investment Incentive. 

• Your family members receive Income Tax relief for investing in your company. 

The investment your company raises must be based on a business plan. Your company must demonstrate that the investment will contribute directly to the creation or maintenance of employment in the company or if your company is not yet trading that your company will use the investment for research and development activities.