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Start up company relief

  • 10-07-2014 5:35pm
    #1
    Pandoras Twist
    Registered Users, Registered Users 2 Posts: 1,375 ✭✭✭


    Hi all,

    Studying for my FAEs at the moment and I think I've come across an error in the core tax book.

    For start up companies am I right in thinking they passive income can be reduced e.g case 3 investment income?

    It says that profits liable to the higher rate of CT per s.21A can't be reduced but as far as I understand it, thats only in relation to excepted trades.

    The example in the book says investment income can't be reduced but I can't see any legislative basis for that. I've also read the revenue notes for guidance.

    Any help would be appreciated.

    Thanks


Comments

  • #2
    The_Bot
    Registered Users, Registered Users 2 Posts: 92 ✭✭The_Bot


    Pandoras Twist wrote: »
    Hi all,

    Studying for my FAEs at the moment and I think I've come across an error in the core tax book.

    For start up companies am I right in thinking they passive income can be reduced e.g case 3 investment income?

    It says that profits liable to the higher rate of CT per s.21A can't be reduced but as far as I understand it, thats only in relation to excepted trades.

    The example in the book says investment income can't be reduced but I can't see any legislative basis for that. I've also read the revenue notes for guidance.

    Any help would be appreciated.

    Thanks

    I suggest you re-read s21A, in particular subsection 3(a), and you will have your answer.


  • #3
    Mr. Incognito
    Registered Users, Registered Users 2 Posts: 9,798 ✭✭✭Mr. Incognito


    Passive income is generally at the higher rate of 25 percent


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