S508J Relief for investment through designated investment funds and qualifying investment funds

(1)(a) Whereby a person or persons having the management of a designated investment fund, as designated by the Revenue Commissioners or a person or persons having the management of a qualifying investment fund subscribe for shares as a nominee for an individual and where that amount subscribed forms part of the fund, relief will be given under section 502 and section 498(1) will not apply.

(1)(b) Relief will not be given where as a nominee a person or persons having the management of the investment fund subscribes for the shares on the behalf of an individual and where that amount subscribed forms part of the fund, apart from the circumstances outlined at paragraph (a).

(2) Within 30 days of receipt of a statement of qualification, the fund managers will provide to the Revenue Commissioners a return of the holdings of eligible shares shown on the statements of qualification received by the designated fund. This will be through the electronic means made available by the Revenue Commissioners.

(3) Where an individual that has claimed relief in respect of shares in a company which have been issued to the fund managers as a nominee for that individual, section 508F(1) will still apply to the managers of the designated fund, as if the claim that the individual makes for relief must be made with a certificate issued by the managers of the designated fund. It must be in the form prescribed by the Revenue Commissioners, with the information as the Revenue Commissioners require and which will certify that the managers of the designated fund hold statements given to them by the relevant companies concerned and for the purposes of section 508F(1).

(4) Where relief is due to a qualifying individual as nominee where the fund managers have subscribed on the behalf of that individual and the eligible shares in respect of the amount which was subscribed are issued in the year of assessment following the year of assessment in which that amount was subscribed to the designated fund or qualifying investment fund, then the individual will be entitled to relief, under section 502(2)(a) or 502(2A), as a deduction from his or her total income for the year of assessment in which the amount was subscribed to the designated fund or qualifying investment fund.

Relevant Date: Finance Act 2021