Angel Investor Relief scheme commenced from 1 March

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.