Can I use debt or gearing to make an investment into a S12J company?

Yes, you may utilise a loan / gearing to make an investment into a VCC, subject to complying with Section 12J(3)(a) of the Income Tax Act.

What is the term of my investment?

The term of the investment will be a minimum of 5 years, with a realization period of up to 18 months thereafter (if required).

Does a section 12J investment carry risk?

As with any private equity investment, an investment in a Section 12J company carries risk. It is important, therefore, to assess the investment strategy of the Section 12J company to ensure you understand the associated investment risk as well as the expertise and track record of the asset manager.

How can I obtain my tax relief?

Investors can claim their tax relief by either reducing their estimate of taxable income when submitting provisional tax returns or by obtaining a tax refund through the annual income tax assessment.

When can the tax deduction be claimed?

An investment into an approved Section 12J company is 100% tax deductible in the tax year you invest.