Business Expansion Scheme

setanta78

Registered User
Messages
13
Just wondering has anybody any information regarding Business Expansion Schemes?? I have been led to believe that they are an excellent venture. Can anybody explain the pros and cons please??:confused:
 
Revenue have a good leaflet on them available on www.revenue.ie , good tax break available but I think they finish at the end of this year.. I think Deloitte & Touche have a BES fund
 
BES investments would generally be considered to be at the higher end of the risk/reward scale. You could do well out of them but you could just as easily lose your money. Many startups fail and BES is geared towards investing in such companies. To say that BES schemes are an excellent venture is meaningless without more qualification/information (e.g. are you looking at them as an investor or a business owner?).
 
I am an investor with about 5k lumpsum at my disposal. I was about to invest in my pension when this idea was suggested.
I am 28 years old. I pay €350 p/m into my pension. My employer then matches my contribution. I top up my monthly payment by €200 AVC's. To be honest I find the jargon that surrounds the pension schemes confusing. My question is, am I paying enough into my pension and would I be better served investing it into a BES or some other fund???:confused:
 
Remember that you can get up to 48% (42% tax and 6% PRSI/health levy) relief on a pension contribution so a contribution of €5K to your pension could only cost you just over €2,500 once you claim relief.

On the basis of the information that you have posted so far I see no compelling reason why BES is for you but it really depends on your overall situation and probably only an independent, professional advisor who does a detailed review/fact find can help you.
 
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