The Revenue Commissioner's Seed Capital Scheme allows for promoters of relevant trading operations to claim back their individual income tax for the previous five years on the amounts subscribed by that individual in a qualifying company, where the individual is a full time employee or full time Director of the company. The tax relief is given for the year in which the investment is made.

The Scheme will continue until 31st December 2006 and forms part of the BES Scheme (Part 16, Sections 488 to 508 of the Taxes Consolidation Act 1997).

Enterprise Ireland's role is to certify that a project is a Bona Fide New venture, which may be eligible for grant aid. It is responsible for the provision of certificates in respect of certain qualifying trading operations.

Do I Qualify?

You may be eligible for tax refund if you are:

• An employee who leaves employment and invests by means of shares in a Company
• Unemployed or recently made redundant and wish to start your own Company which carries on a new business

For Internationally Traded Service and Computer Services projects, the Company must be in receipt of an equity investment from Enterprise Ireland or have received a grant payment of €2,540 in the form or an employment or a feasibility study grant.

How do I apply?

For Certification

• Complete an Application Form, available from your Development Adviser
• Existing Clients of Enterprise Ireland, should contact their Development Adviser, who will work with you to complete the Application for Certification and bring it forward to a decision-making Committee for approval.
• If you are not an existing Client of Enterprise Ireland, you will need to contact your Regional Enterprise Ireland Office and a Development Adviser will be assigned to you.

Refund from Revenue

Once approved, Enterprise Ireland will forward to you the Certificate and the RINE C and RINE I forms on which to make the application for the tax refund.

Your application should be accompanied by the relevant:

• P45s/P60s
• Form P21 (Balancing Statement)
• Copies of Form B5 (proof of share issue and receipt)
• Capital Duty paid
• Bank Statement showing the amounts paid in respect of qualifying shares and certificate of incorporation

Further information is available on the Revenue Website on www.revenue.ie under Leaflet IT15