Features of the Relief
- Claim income tax relief of 30% of your investment up to a maximum of £30,000 per annum.
- The relief is in the form of a repayable tax credit.
- The credit can be claimed either for the tax year in which the investment is made or the previous tax year.
- Application for relief must be made within three months of making the investment
- The repayment of the credit is made once the relevant tax return has been processed.
Eligibility Criteria
- 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.
- 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.
Steps
1
The investor invests in a company that has obtained a Certificate of Advanced Assurance.
2
The investor submits form GEIS08 to apply for the grant.
3
The Economic Development team assesses the claim pending the Revenue Service’s assessment to tax for the relevant year.
4
The investor submits a draw down request on form GEIS10 once their tax has been assessed for the relevant year.
5
The GEIS grant is applied against the investor’s tax liability and a repayment is made if appropriate.