Date of issue: 1st Oct 2024: Scale Ireland welcomes Budget 2025 as ‘a solid boost to Irish tech start-up and scaling companies’ and welcomes the Minister’s recognition that Irish start-up and scaling companies form the backbone of our economy.
Subject to further clarification and details in the Finance Bill, the independent not-for-profit representative group for the Irish tech sector, Scale Ireland, welcomes:
• Increase the amount reimbursed in year one under the R&D Tax Credit scheme from €50k to €75k;
• Increase in the relief available under the Start-up Relief for Entrepreneurs from €700k to €980k;
• Doubling in the investment limits under the Employment Investment Incentive scheme (EIIS) from €500k to €1m;
• Increase in the lifetime limit on gains liable for reduced Capital Gains Tax (for Angel Investors in innovative start-ups and SMEs) from €3m to €10m (Note: new 16% for individuals or 18% through Partnerships announced in Budget 2024);
• New relief for expenses incurred in connection with a first listing on an Irish or European stock exchange, subject to a cap of €1 million;
• Subject to state aid rules, introduce Stamp Duty exemption for Irish SMEs to access equity via financial trading platforms designed to support their funding needs;
• Enhancement of the section 486C small company start-up corporation tax relief;
• Commitment to consider the recommendations of the report on share ownership schemes and the review of R&D tax credit next year.
The CEO of Scale Ireland, Martina Fitzgerald said ‘We welcome the continued strong focus on Irish tech start-up and scaling companies in Budget 2025. The cash flow of early stage companies will be directly affected by the increased cash refund in the first year of the R&D tax credit and we strongly welcome a further review of this next year. We also also welcome the commitment to look at wider employee share
options schemes next year.
The Chair of Scale Ireland, Brian Caulfield added: ‘The government’s continued support for our sector is welcome. The new relief for expenses incurred for listing on the Irish Stock Exchange is important and timely and may encourage more Irish companies to consider listing. The proposal to introduce a Stamp Duty exemption to enable Irish SMEs to access equity on financial trading platforms, subject to state aid rules, also sends a strong message’.