This scheme is for you who do not pay top-bracket tax.
Contributions made to a business establishment savings account represent a deductible value of approx. 27%. And when you withdraw your contributions you are entitled to tax relief on part of the expenses or investments that you pay/make with the money withdrawn. The actual tax relief depends on when you made the contributions.
You are eligible for tax relief on contributions made in the income year in which you established your business and the four subsequent income years.
Contributions entitling you to tax relief in 2021 must have been made to the account in the period of 16 May 2021 until 15 May 2022. There will be no exemption to this deadline and holidays or closing days do not extend the deadline.
You obtain your tax relief by entering the total contributions in your tax assessment notice or in your extended tax return in box 57.
Please contact your bank for further practical details.
You are free to move your account from one bank to another.
If you change your mind and do not start your own business
You will be liable to pay supplementary tax on the contributions you have not used. Supplementary tax on the saved amounts is increased by 3% for each year (5% per year for contributions made before 2002) since the year the contribution was made.