Tax relief for new start-up companies

Can you claim for tax relief for your start-up company

You can apply for tax relief from Corporation Tax (CT), if your start-up company:

  • is incorporated on or after 14 October 2008
  • is set up and began trading between 1 January 2009 and 31 December 2026
  • does not exceed specified levels of CT due.

Qualifying trade

In most cases, the trade of a start-up company set up between 1 January 2009 and 31 December 2026 is a qualifying trade. There are a number of trades excluded from this:

  • a trade previously carried on by another person which the company has succeeded
  • activities previously carried on as another person’s trade or profession
  • land development
  • exploration and extraction of petroleum or minerals
  • service company activities as defined in Part 13 (Section 441) of the Taxes Consolidation Act 1997 
  • activities, including fishery, aquaculture, production of agricultural products and the coal sector, outlined in Article 1 (subparagraphs a – h) of Commission Regulation (EC) No. 1998/2006 
  • activities carried on by an associated company of the new company which forms part of the trade carried on by the associated company.

If your company takes on the activities of another trade, while already claiming relief, the new trade will not be considered a qualifying trade. If your company transfers part of your qualifying trade to a connected person, you will no longer be entitled to relief for that trade.

Next: How is the relief calculated?