Investors - EIIS Fund |EIIS Funds | BES Fund | BES Funds | Simple Green EIIS Fund | Simple Green BES Fund

By: Simple.ie  05/12/2011
Keywords: renewable energy, energy efficiency, income tax

Simple.ie Green EIIS Fund

Our Green EIIS Fund invests in high potential companies that operate in the Green sector. The Fund was launched in 2007 and takes into account the full spectrum of the Green industry from energy efficient software to renewable energy technologies.

Our objective is to achieve capital appreciation with a target goal of 15% per annum by investing in a balanced portfolio of low, medium and higher risk investments. The Fund contains some of Ireland’s most innovative companies engaged in activities such as renewables, waste management, energy efficiency and conservation who have benefited significantly from our investments that includes breaking into the export market.

In addition to the investment opportunities our investors can also avail of full tax relief provisions through the Revenue approved Employment and Investment Incentive Scheme (EIIS).

BVP Fund Managers

The Simple.ie Green funds are managed by BVP Investments Limited which is authorised under the Investment Intermediaries Act, 1995 and is regulated by the Central Bank of Ireland.

BVP investments Ltd. was established in 2004 and the team of David Gavagan, Elliott Griffin and Conor Toolan work on behalf of clients buying and selling companies, raising finance, working with start-ups and advising on strategic growth, business succession and owner exits

BVP has already invested €5 million in ten Irish businesses over the past four years and has more high potential start-ups in the pipeline.

Employments and Investment Incentive Scheme (EIIS)

EIIS is the new tax relief scheme which commenced on the 25th November 2011. The EIIS is a direct replacement for the Businsess Expansion Scheme which has been a popular investment for irish tax payers over the past 20 years. EIIS Funds are designated by the Department of Jobs, Enterprise and Innovation and the Revenue Commissioners to invest in EIIS qualifying companies. The scheme was established to encourage investment in private businesses primarily in the small to medium sized enterprise (SME) sector.

What Tax Relief is Available?

The tax relief enables investors to deduct the 30/41st cost of their qualifying investment from their total income for income tax purposes (including rental income and deposit income) in the year the investment is made.
On completion of the three year holding period, a further deduction of 11/41st of the cost of the qualifying investment is allowable from total income subject to the investee companies increasing employment levels or increasing R&D expenditute.

Who can invest in a EIIS Fund?

Any individual can invest in a EIIS Fund from as little as €250 up to €150,000 in any one tax year.

Why invest in a EIIS Fund?

Our investors participate in uncapped equity investments with anticipated returns in excess of 15% per annum. Investing can give immediate tax relief for all professionals, business owners and employees in 2011.

For example:

By making an investment of €20,000 before 31st December 2011 you will get an income tax refund of €8,200. As a result, the net cost of your investment is actually € 11,800 plus commission of € 800. An anticipated return of 17% per annum would return you double your net cost over 3 years to give you €23,575 back:

Other examples:

Investment amount

Commission (4%)

Initial Tax Relief in 2012

Final Tax Relief in 2015

Net Cost to Investor

Total Payback for Investors (17% p.a.)

€10,000

€ 400

€ 3,000

€ 1,100

 ( € 6,300 )

€ 11,788

€20,000

€ 800

€ 6,000

€ 2,200

( € 12,600 )

€ 23,575

€30,000

€ 1,200

 € 9,000

€ 3,300

( € 18,900 )

€ 35,361

€50,000

€ 2,000

€ 15,000

€ 5,500

( € 31,500)

€ 58,938

€75,000

€ 3,000

€ 22,500

€ 8,250

( € 47,250)

€ 88,403

€100,000

€ 4,000

 € 30,000

€ 11,000

( € 63,000)

€ 117,872

€150,000

€ 6,000

€ 45,000

€ 16,500

( € 94,500)

€ 176,812

Growth Potential of Green Sector

Irelands Green sector has been identified as an emerging sector with significant growth potential over the next 3-5 years where we anticipate it will become mainstream. At BVP Investments Ltd., we believe the following reasons indicate that now is the right time to invest in order to achieve maximum returns in this sector:

The Irish government has committed to targets that will improve energy efficiency, support the deployment of renewable technologies and engage all sectors in the transition to a more sustainable economy. For example, under EU legislation Ireland is obliged to source 20% of energy demand from renewable energy resources by 2020, a figure that currently stands at 3%.
In addition, Ireland is exposed to carbon taxes, emissions caps on energy intensive industries and direct levies on fuels. Taking these regulatory approaches aims to reduce greenhouse gas emissions to meet international and national policy obligations, while also increasing the cost competitiveness of renewable energy & efficiency technologies which are excluded.

To facilitate industry wide change the government has a range of incentives in place. These include set premium rates for renewable energy providers known as feed in tariffs, offering grants, low interest rate loans and upgrading the national grid.

Irish energy prices are among the highest in Europe and with further energy prices rises expected later in the future; these trends will have a negative impact the competitiveness of Irish business. Add to this our 96% fossil fuel energy mix and huge import dependency places our economy in an increasingly vulnerable position. We therefore anticipate the promotion and expansion of the green energy market in the coming years.

With increasing global demand and energy intensive lifestyles the need to diversify our energy mix becomes ever more critical to meet demand side requirements.

Ireland has abundant accessible natural resources, which have the potential to be exploited using our world class R&D base.

Having witnessed the significant volatility and devaluation in the stock market investors are now turning their attention to this being an opportune time to invest in sectors where the fundamentals remain in tact and recovery in valued can be expected over the next 2-3 years.

The information in this article was current at 02 Dec 2011

Keywords: Balanced Portfolio, energy efficiency, income tax, Investment Opportunities, renewable energy

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