Benefits of investing in the Davy EII Tax Relief Fund 2017:
1. Opportunity for Qualifying Investors to avail of one of the few remaining - all income tax reliefs currently offering up to 40%** income tax relief*** (subject to certain qualifying conditions).
2. Opportunity for Qualifying Investors to invest in a diversified fund with a minimum four year investment term which will:
- Spread your investment over a portfolio of established SMEs;
- Focus on indigenous Irish companies with future growth potential; and
- Invest in a range of industries which will help reduce exposure to any one sector;
3. Avail of a professional, experienced and knowledgeable investment team.**Being the current higher rate of income tax and assuming continuation thereof.
***Terms and conditions apply. Income tax relief on an investment in the Fund may be available to Investors in two tranches. Please refer to the section headed “Income Tax Relief” on page 21 for detailed information relating to claiming income tax relief. In general, investors can avail of the first tranche of tax relief by deducting 30/40ths of the amount subscribed to the Fund from their total income for income tax purposes for either the tax year of subscription ending on 31 December 2017, or if so desired the tax year of investment by the Fund ending 31 December 2018. Investors can deduct 10/40ths of the amount subscribed from their total income for income tax purposes in the year of assessment following the end of the four-year investment period, subject to conditions in relation to employment levels or expenditure on research and development being fulfilled by companies in which the Fund has invested. You should consult your tax advisor about the tax relief rules which may apply in your circumstances. This investment may not be suitable for all Investors. For more information on the tax relief, please refer to section headed "The Relief" on page 21.
Risks of investing in The Davy EII Tax Relief Fund 2017:
1. This is a medium to long term investment (minimum of four years from date of investment of the funds) and there is no early exit mechanism.
2. If you invest in this Fund you may lose some or all of the money you invest.
3. There is no guarantee that the Fund will achieve its investment objectives.
4. Investors are exposed to the performance of the small and medium sized companies in which the Fund will invest.
5. Income tax relief which is available in two tranches may not be granted or may be withdrawn if the conditions of the legislation are not satisfied by the Manager, the Fund, Investee Companies and/or Qualifying Investors.
6. The Manager may not succeed in finding suitable companies and/or fully investing the Fund which may result in a return of uninvested funds and a reduction or recovery of the income tax relief already claimed or potentially available to Investors.
7. You may not have sufficient income taxable at the higher rate so that part or all of the first tranche of income tax relief on 30/40ths of the investment amount, if obtained, could be obtained at a lower rate than the higher rate then applying.
8. The higher rate of income tax could reduce from its current 40% rate so that the second tranche of income tax relief on 10/40ths of the investment amount, if obtained, in the year of assessment following the end of the four year investment period could be obtained at a lower rate than the current 40% rate.
9. You may not have sufficient income taxable at the higher rate so that the second tranche of income tax relief on 10/40ths of the investment amount, if obtained, could be obtained at a lower rate than the higher rate then applying. No income tax relief will apply to the second tranche of income tax relief on 10/40ths of the investment amount in the year of assessment following the end of the four year investment period if you have no taxable income at that time.
10. The risks attached to this investment are set out in detail in the Prospectus of the Fund and should be read carefully by potential investors.