SURE Relief: A Valuable Tax Incentive for Entrepreneurs
Starting a new business can require a significant personal investment. Many entrepreneurs are unaware that tax relief may be available to help reduce the cost of investing in a qualifying start-up company.
Start-Up Relief for Entrepreneurs (SURE) is aimed at individuals who leave employment to establish their own company. Where the qualifying conditions are met, the individual may claim a deduction from total income for a percentage of the amount subscribed for share capital in the new company. Alternatively, the individual may elect to claim the relief against total income in one or more of the six tax years immediately preceding the year in which the shares are issued, rather than claiming it in the current year.
The relief is available where an individual subscribes for “eligible shares” in a “qualifying company”.
Who Can Benefit from SURE?
The general conditions for SURE are that you must:
- Establish a new company carrying on a new qualifying trading activity
- Have mainly Pay As You Earn (PAYE) income in the previous four years
- Take up full-time employment in the new company as a director or an employee
- Invest cash in the new company by purchasing new shares
- Keep the purchased shares for at least four years
There are a number of specific conditions that the individual and the company must meet in order to qualify for this relief.
How We Can Help
At Crowleys DFK, we assist entrepreneurs and owner-managed businesses in assessing their eligibility for SURE relief and ensuring that all qualifying conditions are met. To discuss whether SURE relief may be available for your circumstances, please contact us.
