Desperately seeking - information on new company CT relief

patg

Hi

I have been trying to find details on Revenue website and this forum on a relief I believe exists for new businesses against Corporation Tax, however to no avail so far.

I have heard in passing (and my recollection may contain misunderstandings) that a new Company can be exempted from Corporation Tax for the first 3 years until such time as turnover (or profit?) exceeds €40k pa. Is there such a scheme in existence?

If so what is the correct title of this scheme and where can I find details on it. As above I haven't managed to turn anything up on the Revenue website yet (except SCS & BES which are slightly different)

Hoping someone can put me out of my misery...

Many thanks in advance

swanvill

Hi,
You are correct I am not sure what the relief is called yet but I do know that it has to be a new business and it has to be a company, so converting a sole trader/partnership into a company will not entitle you to this new relief. The relief as per press releases from the budget is as follows:

3 Year Tax exemption for Start-up Companies
New start-up companies which commence trading in 2009 will be exempt from tax, including capital gains, in each of the first three years to the extent that their tax liability in the year does not exceed €40,000.

pigeonbutler

As far as I recall the provision hasn't been commenced yet. It's awaiting EU approval I think. As the poster above mentioned it has to be a new trade you can't simply incorporate an existing business. And the company had to be incorporated after Budget day last October.

Hanley

swanvill wrote: »

Hi,
You are correct I am not sure what the relief is called yet but I do know that it has to be a new business and it has to be a company, so converting a sole trader/partnership into a company will not entitle you to this new relief. The relief as per press releases from the budget is as follows:

3 Year Tax exemption for Start-up Companies
New start-up companies which commence trading in 2009 will be exempt from tax, including capital gains, in each of the first three years to the extent that their tax liability in the year does not exceed €40,000.

And keep in mind that it's the tax liability that must be less than 40k.

So you're looking at around 200k in taxable profits before you're liable.

mkdon05

Hanley wrote: »

And keep in mind that it's the tax liability that must be less than 40k.

So you're looking at around 200k in taxable profits before you're liable.

More like 320K

Hanley

mkdon05 wrote: »

More like 320K

That;s absoultely shocking.

Total brain fart there!