Revenue Note for Guidance

The content shown on this page is a Note for Guidance produced by the Irish Revenue Commissioners. To view the section of legislation to which the Note for Guidance applies, click the link below:

Revenue Note for Guidance

769 Relief for training of local staff before commencement of trading

The section provides for an allowance in respect of the cost of recruiting and training staff (all or a majority of whom must be Irish citizens) for a business in advance of the business starting to trade. The allowance is available in the case of a trade consisting of the production for sale of manufactured goods and is spread over the first 3 years of trading. Where profits are insufficient to absorb the allowance, it may be carried forward and set against future profits.

The allowance does not extend to any expenditure incurred which would not be allowed as a deduction if incurred when a trade had commenced. This, for instance, rules out capital expenditure and also ensures that only expenditure connected with the trade qualifies. Only expenditure net of any State grant or subsidy qualifies for the recruitment and training allowance. The claim for the allowance is to be included in the claimant’s annual statement of profits or gains of the person’s trade.

Relevant Date: Finance Act 2021