EII Scheme Information for Investors

The 2020 Davy EIIS Fund is now fully subscribed and closed for new investors

BES management DAC

 

 

Key Characteristics of BES Management DAC:

Owned by BDO and Davy;
Successfully raised nine EII Scheme Funds over the past 9 years;;
Previously raised 19 BES Funds over the past 25 years;
Raised over €199 million which is invested in 180 Irish companies; and
Funds are managed by a professional and experienced management team.

What Is the Employment and Investment Incentive Scheme?

The Employment and Investment Incentive Scheme ("EII Scheme") is a tax relief incentive scheme which provides all-income tax relief to Qualifying Investors for investments in certain qualifying small and medium sized companies ("SMEs")*.
The EII Scheme offers one of the few remaining income tax reliefs and is one of the few sources of total income tax relief (which includes, for example, rental income).

Prospective Investors

Prospective Investors should determine the suitability of the investment based on an assessment of their own personal circumstances, attitude to and capacity for investment risk and need for access to funds. The investment may be suitable for Investors who:

Do not need access to their investment for the term of the investment, which will be at least 4 years from the date the Fund makes its investments;
Do not need an income from their Investment for, at least, the term of the investment;
Will be able to avail of income tax relief at the higher rate on the full investment, within the relevant limits and restrictions;
Are aware they may lose some or all of their investment; after income tax relief; and
Can afford to lose some or all of their investment.
  • Benefits of investing in The 2020 Davy EIIS Fund:

    1. Opportunity for Qualifying Investors to avail of one of the few remaining all-income tax reliefs currently offering up to 40%** income tax relief*** (subject to certain qualifying conditions).

    2. Opportunity for Qualifying Investors to invest in indigenous Irish companies with future growth potential; and

    3. Avail of a professional, experienced and knowledgeable investment tea

    **Being the current higher rate of income tax and assuming continuation thereof.

    ***Terms and conditions apply. Please refer to the section headed “Income Tax Relief” on page 27 for detailed information relating to claiming the income tax relief. Investors may avail of the tax relief by deducting the Investment amount (subject to a maximum of €250,000 invested in all EIIS Funds and schemes in any one year) subscribed to the Fund in 2020, from their total income for income tax purposes for the tax year of subscription ending on 31 December 2020 subject to the Investee Companies complying with the EII Scheme Legislation and certain conditions being fulfilled by the Investee Companies further detailed in the section headed “The Relief” on page 28. You should consult your tax advisor about the tax relief rules which may apply in your circumstances.
    This Investment may not be suitable for all Investors.
  • Risks of investing in The 2020 Davy EIIS Fund

    1. This is a medium to long-term Investment (for a period of at least four years from the date of Investment in each Investee Company) and there is no early exit mechanism
    2. If you invest in Investee Companies by subscribing to this Fund you may lose some or all of the money you invest.
    3. There is no guarantee that the Fund will achieve its Investment objectives or primary objective.
    4. Investors are exposed to the performance of the small and medium sized companies invested in via the Fund which by their nature are high risk.
    5. The availability of the income tax relief on the Investment amount is based on our understanding of current tax legislation and the current Revenue Commissioners' interpretation thereof. Legislation and Revenue Commissioners interpretation is subject to change including retrospectively without notice.
    6. Income tax relief which is available, within limits, against income earned in the tax year of subscription to the Fund (2020) may not be granted, or granted in full, or may be withdrawn where already claimed, in part or in full, if the conditions of the legislation are not satisfied by the Fund and/or Investee Companies, including:
      • The Manager may not succeed in finding suitable companies and/or fully investing the monies subscribed to the Fund which may result in a return of uninvested funds and a consequent reduction or recovery of the income tax relief already claimed or potentially available to Investors.
      • Statements of Qualification for the tax relief may not be issued by Investee Companies if the conditions as set out in the section “Income Tax Relief” on page 27 are not fulfilled. In such circumstances the Manager cannot issue a Managers Certificate and income tax relief will not be available to the Investors, or if already claimed may be required to be refunded to Revenue by the Investor.
      • If a company in which the Fund is invested fails to spend 30% of the amount raised on a Qualifying Purpose within two years from the issue of Eligible Shares, that Investee Company cannot issue a Statement of Qualification; in such circumstances, the Manager cannot issue a Managers Certificate and the income tax relief on that Investment will not be available to the Investor.
    7. Income tax relief which is available, within limits, against income earned in the tax year of subscription to the Fund (2020) may not be granted or may be withdrawn where already claimed, in certain circumstance, including:
      • You may not have sufficient income taxable at the higher rate so that part or all of the income tax relief on the Investment amount, if obtained, may be obtained at a lower rate than 40%, the current higher rate of income tax.
      • ii. You may lose part or all of the income tax relief you obtain on the Investment amount if you receive value from any of the Investee Companies in which you invest through the Fund within a period of two years before and ending four years after the investment in the company (as detailed in the section “Withdrawal of Relief – Investor” on page 32).

    The EII Scheme operates on a self-certification basis which requires Qualifying Companies to self-certify and issue Statements of Qualification. In certain circumstance, the Investee Company bears the risk of the Relief not being granted or withdrawn as a result of incorrect self-certification and circumstances detailed in the section “Withdrawal of Relief – Investee Company” on page 32. In these circumstances, the Investor may bear the risk of the commercial impact of a withdrawal of Relief from the Investee Company and hence may impact the value of the Investment. In certain other circumstance, the Investor bears the risk of the Relief not being granted or being withdrawn.

    Warning: The information contained in this document is based on our understanding of current tax legislation and the current Revenue Commissioners interpretation thereof and is subject to change including retrospectively without notice. This is intended as a general guide only and is not a substitute for individual tax or investment advice. Potential Investors should seek competent professional advice specific to their circumstances prior to investing. Investors are responsible for establishing their entitlement to participate in this investment and for making their own tax relief claims.

The Funds are invested in established, indigenous Irish companies with future growth potential. Set out below is a sample of previous investee companies:

BES Management DAC

BES Management DAC is regulated by the Central Bank of Ireland. BES Management DAC is a joint venture company owned by Davy and BDO. J&E Davy, trading as Davy, is regulated by the Central Bank of Ireland.

Davy is a member of Euronext Dublin and the London Stock Exchange. BDO is authorised to carry on investment business in the Republic of Ireland by the Institute of Chartered Accountants in Ireland.

davy bdo ireland

Get in touch

BES Management DAC
Fifth Floor,
Beaux Lane House,
Mercer Street Lower,
Dublin 2.
D02 DH60

Investors wishing to receive information in relation to our various Davy BES/EIIS Fund, please contact the Davy Execution Desk on 01 614 9000 or email besinfo@bes.ie

Companies wishing to receive further information about The Davy EII Tax Relief Fund can contact:

Andrew Bourg

For information on our BES Tax Advisory Services please view our Tax Advisory Page on the BDO website.

Warning: The information contained herein does not purport to be comprehensive, all inclusive or to contain all the information that a prospective investor might reasonably require in considering an investment in the Fund. It is strictly for information purposes only and must be read in conjunction with the Prospectus. This information does not constitute advice or a recommendation in any way. It does not take into account the knowledge and experience, investment objectives or financial situation of any particular person. The information contained herein is based on our understanding of current Irish tax legislation and Revenue guidelines. Prospective investors are advised to make their own independent commercial assessment of the information contained and obtain independent professional advice (including inter alia legal, financial and tax advice) suitable to their own individual circumstances, before making an investment decision, and only make such decisions on the basis of their own objectives, experience and resources.