What is an EII Fund?
The Employment and Investment Incentive Scheme is a Tax Relief incentive scheme which enables investors to deduct the cost of their qualifying investment from their total income for income tax purposes. It was established to encourage investment in small to medium sized private business operating in certain sectors. The scheme is currently due to run until 31 December 2020.
Why Invest in a EII fund?
- EII is one of the few sources of Total-Income-Relief available
- EII relief in two tranches totalling to 40% tax relief
- Funds are committed for a minimum of 4 years.
- The Investor’s exposure is limited to the up-front equity investment.
Why invest in the 10th BVP Green EII Fund?
Business Venture Partners (BVP Investments Ltd.) is an experienced BES and EII fund Manager who has successfully raised and invested in 9 Green Funds to date.
Why focus on Green Sector Investments?
BVP sees Green business as an emerging sector in the Irish economy and anticipate that it will become mainstream over the next few years. We define Green companies as those engaging in business with a focus on renewable energy, energy conservation or social responsibility. We also invest in energy efficiency, waste management or technologies connected with these sectors. The key drivers for growth include a combination of; industry wide environmental regulations and policies, as well as government incentives to facilitate change such as; grants, fixed premium rates for renewable energy suppliers (feed in tariffs) and upgrading the national grid.
What is the minimum or maximum I can invest?
An individual investor can obtain income tax relief on investments minimum of €5,000 and up to a maximum of €150,000 per annum in each tax year up to 2020.
How long is the term of the Investment?
The minimum investment period is four years from the date the fund invests in the respective companies.
How do I claim my tax relief?
For an EII investment made in 2016 a deduction of 30/40ths of the amount invested is claimed against total income for 2016. On completion of the three year holding period a further deduction of 10/40ths of the amount invested is claimed against total income in the year the three year holding period has been completed. The additional deduction subject to the investee company increasing its expenditure on R&D activities or increasing its employment levels and maintaining its average level of remuneration. It is the responsibility of the investor to make their own claim for tax relief on receipt of notification from the manager.
How much will my investment cost me?
Investors are liable to a commission of 3% of the full amount invested in the fund. There are no further charges.
How do I subscribe to the fund?
Our Information Memorandum and Application Forms are available by contacting BVP. These outline all relevant information and the terms and conditions for the 10th BVP Green EII Fund.
We are now accepting applications for the 10th BVP Green EII Fund. To subscribe to the fund, please (i) complete the Application Form and submit to BVP Investments Limited, Unit 23, The Cubes 2, Beacon South Quarter, Sandyford, D 18 K6Y6. (ii) completed application forms must be accompanied by a personal cheque or bank draft drawn on an applicant’s own bank account, payable to Capita Corporate Trustees Limited a/c 10th BVP Green EII Fund. Please note the total amount must include the investment amount plus commission of 3%.
Who is the Manager of the fund?
The Fund is managed by BVP Investments Ltd. a private company established for the purpose of managing a Designated Investment Fund.
Who is the Trustee to the fund?
The fund has appointed Capita Corporate Trustees Limited (‘Capita’) as trustee of the fund. Capita is a subsidiary of Capita Plc, the publicly quoted Dublin based financial services group.
What is the exit process for my Investment?
The Manager will co-ordinate the Exit of the Fund after expiration of the Minimum Investment Period by seeking to make arrangements with the Board of Directors of each of the Investee Companies/projects for the realization of the Investee Companies for the realization of the Fund’s investments. These may include:
- a sale of the shares on the Irish Stock Exchange or any other recognized securities market, if such share are listed;
- an acquisition or take-over;
- a private placing, e.g. a trade sale;
- a repurchase or redemption by the Investee Company of its own shares;
- a sale of the EII shareholdings to the promoters of the Investee companies;
- the exercise of a call or put option at market value with the promoters of the Investee Companies; and/or;
- any other method of realization which may, in the opinion of the Manager, be appropriate at that time.
Note: If enacted, changes announced in Budget 2017 will affect the first and second tranche of tax relief under the EII Scheme. Please refer to EII scheme page for further information.