Relief for investments in innovative enterprises, commonly known as Angel Investor Relief, commenced by Ministerial Order on 1 March 2025. The relief allows individuals to avail of a reduced capital gains tax (CGT) rate of 16 percent, or 18 percent in the case of investments made via a qualifying partnership, on a gain arising on the sale of a qualifying investment in a qualifying company, subject to certain conditions. Revenue has issued three Tax and Duty Manuals covering the relief: The Tax and Duty Manual Relief for investment in innovative enterprises outlines the requirement that the qualifying investment must be made before 31 December 2026 and that shares must be held by the investor for at least 3 years before the disposal, The Tax and Duty Manual Qualifying Company (Certificates of Qualification) confirms that a qualifying company is one which holds certificates of qualification which consist of: a certificate of going concern, and a certificate of commercial innovation. A company can apply to Revenue for these certificates of qualification. The manual outlines the process for making applications and provides further details on the definition of qualifying company and qualifying investment. The Tax and Duty Manual Investor’s perspective provides further details on the conditions for claiming the relief including details on eligible shares, qualifying investments, and investment through partnerships. The reduced CGT rate is available on a gain up to a maximum of twice the value of the investor’s initial investment and the relief is claimed on the individual’s Income Tax return. A lifetime limit of €10 million exists on the total amount of chargeable gains that may avail of the reduced rate of CGT for each individual investor.

In this week’s post EU exit corner, we bring you the latest guidance updates and publications relevant in the post EU exit environment. The most recent Trader Support Service bulletin is also available as is the latest Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. Miscellaneous guidance updates and publications Internal temporary storage facilities (ITSFs) codes for Data Element 5/23 of the Customs Declaration Service, Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service, Reference documents for The Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020, Reference Documents for The Customs Tariff (Suspension of Import Duty Rates) (EU Exit) Regulations 2020, Reference Document for The Customs Tariff (Establishment) (EU Exit) Regulations 2020 Importing SPS controlled goods that interact with the ALVS, Check if a business holds Authorised Economic Operator status, List of customs training providers, and Using commodity codes and related additional codes in the Customs Declaration Service.

Revenue has launched a new Customer Charter which outlines the principles for service delivery and the mutual expectations in dealings between Revenue and its customers. The Charter emphasises that Revenue’s primary service delivery channel is digital and outlines that the digital self-service channels process millions of customer transactions annually. Revenue recognises that some customers may, due to their personal circumstances, have difficulty in using the digital services and that a network of trained Access Officers is available to assist persons with a disability in accessing services provided by Revenue. Revenue will also provide virtual and in-person appointments where necessary. The Charter affirms the commitment by Revenue to transparent accountability, including the publication of regular performance reports on service delivery.

The Institute, under the auspices of the CCAB-I, made representations on behalf of members at recent meetings of the Tax Administration Liaison Committee (TALC) Direct and Capital Subcommittee and TALC Indirect Taxes Subcommittee. Among the issues that the Institute raised were the filing requirements for Investment Limited Partnerships and the VAT treatment of microgeneration of electricity. TALC Direct and Capital Subcommittee meeting Filing requirements of an Investment Limited Partnership CCAB-I raised a query on the filing requirements for Investment Limited Partnerships (ILPs). An  ILP is regulated by the Central Bank of Ireland as a Qualifying Investor Alternative Investment Fund (QIAIF). The partners of an ILP are similar to shareholders in an investment company or unitholders in a unit trust. Section 739J(3) TCA 1997 requires an ILP to file a return on or before 28 February in the year following the year of assessment. This is known as the Form ILP1. Our members were reporting confusion as to whether an ILP is also required to file the Form 1 (Firms) partnership return. In our view, a Form ILP1 should be the appropriate form. Revenue confirmed, however, that an Investment Limited Partnership is required to complete both a Form 1 (Firms) and a Form ILP1. A new tax and duty manual on partnerships will issue in the coming months. Partnerships and association for the purposes of certain ATAD measures CCAB-I raised a query on the meaning of “associated entities” and the impact on partnerships for the purposes of the Outbound Payments Defensive Measures. This concept is also discussed in guidance on Anti-Hybrid Mismatches and on the Interest Limitation Rule. We requested clarification on whether guidance in the latter manuals pertaining to partnerships would be updated to reflect the guidance in the Outbound Payments Defensive Measures manual. Revenue noted that future guidance will cover the general tax implications of partnerships and specific provisions which should address the query raised. Residential Zoned Land Tax An update was provided by Revenue on the recent meeting of the Residential Zoned Land Tax Subcommittee. The issue regarding the lack of a clearance mechanism for certain property transactions was raised and consequent expected delays were outlined to Revenue. TALC Indirect Subcommittee meeting VAT on the microgeneration of electricity Revenue confirmed that the application of VAT on the microgeneration of electricity by businesses can be managed by the business itself or by the electricity supplier receiving the excess energy via customer self-billing. VAT in the Digital Age update Revenue also outlined the measures which form part of the VAT in the Digital Age (ViDA) proposal which aims to significantly modernise the EU’s VAT system. The three pillars to the proposal cover e-invoicing and digital reporting, platform economy, and single VAT registration with all proposals expected to be fully implemented by 2030. VAT scheme for small enterprises Revenue confirmed that the directive on the special VAT scheme for small enterprises (Directive 2020/285) will be transposed soon, after which guidance will be issued. This scheme is operating by Revenue on an administrative basis since 1 January 2025.

The Department of Finance and the Department of Public Expenditure and Reform have published the Fiscal Monitor for February 2025 which confirms an exchequer surplus of €3.2 billion to the end of February. This compares to a deficit of €0.1 billion recorded for the same period last year. Tax receipts collected to the end of February were €15.2 billion, which was €3.2 billion ahead of the same period last year. Excluding the once off receipts from the Court of Justice of the European Union (CJEU) judgement in the Apple State Aid case, total receipts amounted to €13.5 billion, an increase of €1.5 billion. Tax revenues of €5.1 billion were collected in the month of February, up by €0.9 billion on the same month in 2024. Income tax receipts of €2.7 billion were recorded in the month of February, €0.2 billion ahead of last year.  On a cumulative basis, income tax receipts of €5.7 billion were €0.3 billion (5.8 per cent) ahead of the same period in 2024. Corporation tax receipts of €1.0 billion were collected in the month which was an increase on February 2024 by just under €0.5 billion, mainly due to a once off amount not related to the CJEU ruling. On a cumulative basis, receipts of €2.8 billion were up by €2.2 billion. When once-off CJEU revenues are excluded, cumulative corporation tax receipts to the end of February 2025 amounted to €1.1 billion, ahead of the same period last year by €0.5 billion. February is not a VAT-due month and modest receipts of €0.5 billion were collected in the month, up by €0.1 billion on February 2024. Cumulatively, VAT receipts of €4.6 billion are ahead of the same period last year by €0.3 billion. Excise duty receipts of €0.5 billion were collected in February, up by €43 million on the same month last year. Commenting on the figures, Minister for Finance, Paschal Donohoe said ”February is not generally a significant month for tax revenues, but the steady performance across most tax heads to date is a further positive reflection of the strength of our economy. The March returns, which incorporate the first large corporate tax payments of the year, will provide a clearer indicator of the performance of the public finances. In an increasingly uncertain global environment, it is now more important than ever that we maintain our public finances on a positive trajectory. This Government is committed to doing this in a balanced and sustainable way.”  

The Directorate-General for Taxation and Customs Union has announced the release of updated Guidance on the Preferential Rules of Origin. The updated guidance is intended to enhance clarity and compliance in international trade.

The OECD has released the latest BEPS Action 14 Mutual Agreement Procedure (MAP) peer review results which indicate ongoing progress in making dispute resolution more effective. Jurisdictions have committed to implementing the minimum standard for treaty-related disputes under the BEPS package.

The OECD will host its virtual Tax and Development Days 2025 event later this week. This event provides an update on OECD initiatives to strengthen tax capacity, enhance tax policy, and improve compliance in developing countries, while also exploring future challenges.

On 18 March 2025, the European Parliament and the European Commission will co-host the third edition of the EU Tax Symposium. This year, the event will take place under the theme: Strengthening competitiveness and fairness to build prosperity.

In Irish news this week, we bring you an update from the recent TALC Collections sub-committee meeting and Revenue has published guidance on the new agent e-linking process. In UK news, HMRC release a message on ADL performance and recent banking issues, and we bring you the latest guidance updates and publications in our post EU exit corner. In International news, the OCED has published a working paper on taxation of capital gains. Ireland 1.Read about the representations made by the Institute, under the auspices of the CCAB-I, at the recent TALC Collections sub-committee meeting. 2. Revenue has issued guidance on the new agent e-linking process. UK 3. HMRC issue a message on ADL performance and recent banking issues. 4. Read the latest updates and publications in the post EU exit corner. International 5. The OECD has published a paper on taxing capital gains. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount.

Revenue has updated its guidance on Return of Values – Investment Undertakings to confirm a reporting obligation does not arise for excepted unit holders in Pan European Pension Product (PEPP) and The Future Ireland Fund and the Infrastructure, Climate and Nature Fund. The manual now confirms that all returns should be submitted through the Revenue File Transfer System (RFTS) to the Analytics and Information Branch of the Accountant General's and Strategic Planning Division.

HMRC has released a brief message on two issues raised last week; problems with some advisors accessing certain systems and issues with some banks having problems with some of their services. ADL Performance (Advisors unable to access certain systems)  We’re sorry about the issue that impacted customers on our Self Assessment telephone service and ADL last week. This has been resolved. Affected colleagues continued to provide a service to customers by offering general advice and we encouraged people to use our online services, which were working as normal. Banking Issues Friday 28 February We’re aware of the issues with some banks on Friday 28 February 2025. They've now been resolved, meaning customers will have been able to pay their tax and avoid any penalties. Our online services are working as normal.