Why no talk about EIIS schemes

adam88

There’s very little talk about these EIIS schemes. I wonder why??

From what I can see there a great scheme.

phantom_lord

Usually high risk and very high fees.

Diarmuid

Is there any historical data on these investments to guide a prospective investor? Any guide to average returns over the past 20 years etc? It does look like high risk, seed capital to effectively startup companies and no diversification.

duffysfarm

i think revenue have made it increasingly hard for companies to get approved for this which may mean that there are not a lot of good opportunities out there.
revenue have been promising to update the scheme for a number of years but i havent seen anything yet. with the improvement in the economy its hard to see them doing too much now.
there seems to have been a lot of whiskey ones in the last few years which may be a good or bad sign.
i would say that all of the best ones are been snapped up by relatives, orgainisers and private clients.
i did look into a few years back and one company in particular. they had a prospectus but it bore no resemblance what so ever to the accounts that were filed with the companies registration office.

Benildus

I've invested in one - they didn't advertise and it appears most of the investors are known to the company owner (which doesn't bother me). I invested €25k and received back the 30% tax refund shortly after submitting my tax return.

I heard about them through a friend of a friend

irishguy

I invested in a couple of them (Direct and with the Davy fund) got the 30% tax back. Waiting for them to mature, but all indications are they will be returning funds as expected in 1 to 2 years. Considering investing this year too with Davy, but Revenue are very slow in approving things now.

I think last year would have been the end of the first EIIS scheme, so not sure how that worked out for people.

Diarmuid

irishguy wrote: »

I invested in a couple of them (Direct and with the Davy fund) got the 30% tax back. Waiting for them to mature, but all indications are they will be returning funds as expected in 1 to 2 years. Considering investing this year too with Davy, but Revenue are very slow in approving things now.

I think last year would have been the end of the first EIIS scheme, so not sure how that worked out for people.

When you say "returning funds as expected" what does that mean ? Are you getting back just your original amount? Or did your investment grow? How many years was the investment period?

irishguy

Have a read of how the EIIS scheme works, they are all the same. The investment company has said the underlying investments are performing on target so return funds as planned after 4 years.

argolis

A word of warning to only invest what you can afford to lose. If you invest 10k, you can reliably get back €4100 in tax relief from Revenue but be aware that you risk the remainder with the company.

I invested in one of these a few years ago which matured in 2017. I never heard from the company and they're now citing trading conditions in mid-2018 as the reason they couldn't pay out in 2017/early 2018 and to check back with them next year. I was aware of the risk to begin with but still and all...

Personally, I would recommend spreading your investments across several EII investments i.e. two or three investments of 10k, rather than one investment of 25k. If a company is taking it seriously, they should have a prospectus and that's a great idea from duffysfarm to check the CRO-filed accounts to compare - I wish I'd done that way back when