Guernsey Enterprise Investment Scheme
The Scheme
The Guernsey Enterprise Investment Scheme (GEIS) is an initiative by the Committee for Economic Development aimed at encouraging investment in high-growth, early-stage businesses within the Bailiwick.
The scheme seeks to stimulate economic growth and innovation by encouraging £2 million of investment into Guernsey businesses over the two-year trial period.
Tax Relief for Investors
GEIS provides significant incentives for local investors who can claim income tax relief of 30% of their investment up to a maximum of £30,000 per annum.
The relief is in the form of a repayable tax credit which can be claimed either for the tax year in which the investment is made or the previous tax year.
Businesses
Applications from companies wishing to participate will be accepted between 1 October 2024 and 9 November 2024. The pilot has a total funding budget of £600,000 and any remaining funds will be allocated in a later round early in 2025. The allocation of funds is on a first come, first served basis.
Investors
Application for relief must be made within three months of making the investment and the repayment of the credit is made once the relevant tax return has been processed.
Eligible Businesses
The business:
- Must be a trading company incorporated and registered in Guernsey.
- Must have been trading for more than four months and less than seven years.
- Cannot raise more than £500,000 through GEIS.
- Must operate within a qualifying sector.
- Must remain based in Guernsey for at least five years.
- Must have fewer than 25 full-time equivalent employees when the shares are issued.
- Must use the funds raised within two years to grow or develop the company.
- Must offer investments that pose a risk of loss of capital to investors.
- Must not use the funds to buy into another business.
Eligible Investors
The investor:
- Must be an individual and a Guernsey taxpayer.
- Can be an unpaid director of the company but cannot be an employee (or an employee’s family member).
- Must invest a minimum £1,000.
- Must operate within a qualifying sector.
- Will benefit from a maximum £30,000 of relief per annum capped at their total tax liability for the year.
- Must hold their shares for a minimum of three years.
- Cannot hold more than 30% of the company’s shares, voting rights or rights to the assets when wound-up.
- Cannot be a tax cap or standard charge payer.