EIIS: 6 questions to ask before you invest, answered
Before investing in EIIS, ask: can you leave the money for five to seven years, where is it held, what does it cost, who is paid to recommend it, what happens if something goes wrong, and how are gains taxed. Here are straight answers for the BVP 2026 EII Fund, as discussed by BVP CFO Stephen Tully on the Informed Decisions podcast.
BVP CFO Stephen Tully joined Paddy Delaney on the Informed Decisions podcast to answer the questions investors should ask before investing in EIIS. Paddy’s six questions are a good checklist for any EIIS offer. Below are the answers for the BVP 2026 EII Fund.
1. Can you do without the money for five to seven years?
You should plan to. Shares must be held for at least four years to keep the relief, and the BVP 2026 EII Fund has an expected term of 4 to 7 years with no early exit for investors. Returns come as individual companies are sold, so they arrive unevenly. If you may need the money within that time, EIIS is not suitable.
2. Where is your money actually held?
Money invested in the BVP 2026 EII Fund is held by an independent regulated trustee, IQ-EQ, which ringfences investor funds before they are invested in companies. It is not held on BVP’s balance sheet.
3. What are all the costs, and who pays them?
Investors pay a one-off 3% commission. There is no annual management charge. On exit, realisation costs of up to 2% apply, and BVP takes a 20% performance fee only on returns above a 15% IRR. BVP also charges monitoring fees to the portfolio companies, not to investors.
4. Who is paid for recommending it?
The 3% commission is the standard payment, whether you invest directly with BVP or through a regulated financial adviser, and it is disclosed upfront. Ask any adviser recommending EIIS how much they are paid.
5. What happens if something goes wrong?
Some companies may fail, and you can lose some or all of the money invested. Spreading the fund across 6 to 8 companies reduces the impact of any single failure but does not remove the risk. If a company fails to meet the scheme’s conditions, Revenue generally withdraws the relief from the company rather than the investor. Relief can still be withdrawn from an investor in other cases, for example if an investee company exits within four years.
6. How are the gains taxed?
Gains on exit are subject to Capital Gains Tax. The income tax relief is not deducted from your cost when the gain is worked out. If you make a loss, the relief already received is taken into account, so loss relief is usually not available.
What Stephen said on the podcast
- “A good rule of thumb is the higher the relief, the higher the risk.”
- Anyone who may need their money within five to seven years should not consider EIIS.
- Returns are “lumpy”: some companies fail early, and the successes tend to come later.
Other questions raised
Is “up to 50%” relief what I will get?
Not necessarily. 50% is the maximum, for companies that have not yet operated in any market. Rates are 50%, 35% or 20% depending on each company’s stage, for an investor paying 40% tax. The BVP 2026 EII Fund targets a blended 35%.
Is EIIS available after 2026?
Under current law, relief applies to shares issued by 31 December 2026. Budget 2027 announced an extension, subject to adoption of the new EU General Block Exemption Regulation. To claim relief for 2026, you must invest in the BVP 2026 EII Fund before it closes on 31 December 2026.
Key facts
| Fund | BVP 2026 EII Fund (BVP’s 20th EIIS fund) |
| Closes | 31 December 2026 |
| Investment | €10,000 to €1 million |
| Target relief | 35% blended |
| Costs | 3% one-off commission; no annual management charge; realisation costs up to 2%; 20% performance fee above a 15% IRR |
| Money held by | Independent trustee, IQ-EQ |
Frequently asked questions
1. Can you do without the money for five to seven years?
You should plan to. Shares must be held for at least four years to keep the relief, and the BVP 2026 EII Fund has an expected term of 4 to 7 years with no early exit for investors. Returns come as individual companies are sold, so they arrive unevenly. If you may need the money within that time, EIIS is not suitable.
2. Where is your money actually held?
Money invested in the BVP 2026 EII Fund is held by an independent regulated trustee, IQ-EQ, which ringfences investor funds before they are invested in companies. It is not held on BVP’s balance sheet.
3. What are all the costs, and who pays them?
Investors pay a one-off 3% commission. There is no annual management charge. On exit, realisation costs of up to 2% apply, and BVP takes a 20% performance fee only on returns above a 15% IRR. BVP also charges monitoring fees to the portfolio companies, not to investors.
4. Who is paid for recommending it?
The 3% commission is the standard payment, whether you invest directly with BVP or through a regulated financial adviser, and it is disclosed upfront. Ask any adviser recommending EIIS how much they are paid.
5. What happens if something goes wrong?
Some companies may fail, and you can lose some or all of the money invested. Spreading the fund across 6 to 8 companies reduces the impact of any single failure but does not remove the risk. If a company fails to meet the scheme’s conditions, Revenue generally withdraws the relief from the company rather than the investor. Relief can still be withdrawn from an investor in other cases, for example if an investee company exits within four years.
6. How are the gains taxed?
Gains on exit are subject to Capital Gains Tax. The income tax relief is not deducted from your cost when the gain is worked out. If you make a loss, the relief already received is taken into account, so loss relief is usually not available.
Is “up to 50%” relief what I will get?
Not necessarily. 50% is the maximum, for companies that have not yet operated in any market. Rates are 50%, 35% or 20% depending on each company’s stage, for an investor paying 40% tax. The BVP 2026 EII Fund targets a blended 35%.
Is EIIS available after 2026?
Under current law, relief applies to shares issued by 31 December 2026. Budget 2027 announced an extension, subject to adoption of the new EU General Block Exemption Regulation. To claim relief for 2026, you must invest in the BVP 2026 EII Fund before it closes on 31 December 2026.
Related guides
- What is EIIS?
- EIIS tax relief
- How to claim EIIS relief
- EIIS deadline 2026
- EIIS risks
- EIIS fund vs direct investment
- EIIS vs pension contributions
- EIIS for ARF and rental income
- EIIS FAQ
- About BVP
- BVP team
Capital at risk. Tax relief depends on individual circumstances and Revenue rules. Minimum 4-year holding period. EII investments are in unquoted, early-stage and growing companies and are illiquid. Past performance is no guarantee of future returns. This page is general information, not tax or investment advice.