Investing in Business Expansion Schemes are tax deductible.

B

brehon6789

Registered User
Messages
42
Hi Everyone

At the moment i am looking at selling my house, i reckon that i will end up making a profit of about 100k. My Tax bill will be around 20k. So what i am looking to do is invest this 20k in a small business.

Under the Business Expansion Scheme, can i take the 20k and invest it in a company instead of paying this to the government or whats the best approach? So that would leave me not paying any tax and being able to invest the money for growth in a small company.

Thanks

brehon
 
BES schemes are high risk in nature. You could end up losing all of the investment.

Regarding the investment - [broken link removed] may be of use. From my brief reading of it if you invested 20k you would be entitled to tax relief of €20,000 * your marginal rate of tax. On the basis of your figures it looks like you are paying the 20% rate and there fore for your investment of €20,000 you may get relief of €4,000. If you wish to reduce your bill by €20,000 you would have to invest the €100,000 (and remember you could quite easily lose all of the investment!).

Pay close attention to all the criteria in the link and if thinking of doing this speak to an accounant or a tax advisor before you do anything (and probably also an investment advisor!).
 
Last edited:
You must log in or register to reply here.
Back
Top