Eligibility Criteria

To qualify for SURE, the individual must:

1. Establish a New Company:
   • The company must carry on a new qualifying trading activity.
2. Have Mainly PAYE Income in the Previous Four Years:
   • Ther includes employees, unemployed individuals, those recently made redundant, or retired persons.
3. Take Up Full-Time Employment:
   • The individual must work full-time in the new company as a director or an employee.
4. Invest Cash in the New Company:
   • The investment must be made by purchasing new shares in the company.
5. Retain the Shares for at Least Four Years:
   • The shares purchased must be held for a minimum of four years.

Relief Details

• The relief allows the individual to claim a refund of Income Tax paid in any of the six years prior to the year of investment.
• The maximum annual amount of relief under SURE is €100,000.
• If the individual has already claimed relief under the Employment and Investment Incentive (EII) or its predecessor (BES), the total relief available in a year cannot exceed the maximum available under EII.

Claiming the Relief

• The individual must obtain a Statement of Qualification form (SQSURE3) from the company.
• Relief can be claimed through the appropriate tax return (e.g., Form 11 for self-employed or Form 12 for PAYE).

Scenario Example:

• Mary was employed for the past 5 years, earning a salary of €60,000 per year.
• In 2025, Mary decides to leave her job and start her own company.
• Mary invests €50,000 of her savings into the company by purchasing new shares.
• Mary meets all the eligibility criteria for SURE (e.g., PAYE income in the previous 4 years, full-time employment in the new company, etc.).

Tax Relief Calculation:

Mary can claim a refund of the Income Tax he paid in the previous 6 years (up to the amount of her investment, €50,000). Let’s assume the following:

• Mary’s taxable income for the past 6 years was €60,000 per year.
• She paid Income Tax at the standard rate (20%) on the first €44,000 and at the higher rate (40%) on the remaining €16,000.
• Her total Income Tax paid each year was:
  • Standard rate tax: €44,000 × 20% = €8,800
  • Higher rate tax: €16,000 × 40% = €6,400
  • Total tax paid per year: €8,800 + €6,400 = €15,200

Refund Under SURE:

• Mary’s total investment in the company is €50,000.
• She can claim a refund of Income Tax paid in the past 6 years, starting with the most recent year and working backward, until the €50,000 limit is reached.

Refund Breakdown:

1. 2024: Refund of €15,200 (full tax paid for the year).
2. 2023: Refund of €15,200 (full tax paid for the year).
3. 2022: Refund of €15,200 (full tax paid for the year).
4. 2021: Refund of €4,400 (remaining amount to reach €50,000).

Total Refund:

• Mary receives a total refund of €50,000 under the SURE scheme.

Key Notes:

• Mary must hold the shares in the company for at least 4 years to retain the relief.
• If Mary had already claimed relief under the Employment and Investment Incentive (EII) in any of the past 6 years, the amount of SURE relief available would be reduced accordingly.