The Committee for Economic Development is seeking views from industry and stakeholders on a proposed Guernsey Enterprise Investment Scheme (GEIS).
The scheme aims to encourage investment into high growth, early-stage businesses. This consultation will be used the evaluate investor and business interest in GEIS, the method of operation and eligibility requirements.
The survey will take approximately 5 minutes to complete.
The scheme aims to encourage investment into high growth, early-stage businesses in Guernsey by providing an investor benefit to those investing into start-ups and developing businesses in eligible sectors.
Guernsey-based investors who invest into a qualifying business will be able to apply for an equivalent tax relief incentive of up to 30% of the investment value. Through the provision of investor incentives, GEIS aims to encourage an estimated £2.2m of investment into Guernsey businesses over the next three years.
The scheme is broadly based on the successful Enterprise Investment Scheme (EIS) provided in the UK. From 2020 - 2021 there were 3,755 companies in the UK who raised a total of £1,658 million of funds through the UK EIS scheme. EIS and the related Seed Enterprise Investment Scheme (SEIS) now form a key component of new business pitches and presentations to potential investors in the UK.
GEIS would initially operate as three-year trial and be funded through the Government Work Plan. Participation during the trial period will be capped to not exceed the GWP funding limits.
The Committee for Economic Development request feedback from businesses, organisations, and individuals in relation to:
- Business/Investor interest in participating in the scheme
- Qualifying criteria for GEIS
- Supported business sectors
This consultation will be used the evaluate interest in GEIS, the method of operation and eligibility requirements. The launch of the GEIS scheme will be considered following analysis of consultation responses and forthcoming States of Guernsey Government Work Plan review.
To provide feedback please complete the form below. For further information please contact Keith Wilén, keith.wilen2@gov.gg
The deadline for comments is Friday 16 June.
Proposed GEIS Investor Benefits and Eligibility Requirements
- £1,000 minimum investment
- GEIS payment equivalent of up to 30% of the investment
- Can claim a maximum of £50,000 GEIS payment per year
- Claimant must be a Guernsey taxpayer
- GEIS can only be claimed by individuals
- GEIS can be claimed for the two preceding tax years to the year of investment
- For example, if the investment is made in 2023 this could be based on year of charge 2020 or 2021)
- GEIS payment can not exceed an individual's tax liability for the year claimed
- Investor must not be connected to the GEIS company or any subsidiary either as an employee, business partner, spouse, civil partner, or family member (parents, grandparents and great-grandparents, children, grandchildren and great-grandchildren)
- Unpaid Directors of the GEIS company are eligible to claim
- Investor must hold shares for not less than [three years]
- Investor cannot hold a total of more than 30% of the company's:
- Shares
- Rights to assets if the company is wound-up
- Voting rights
Proposed GEIS Business Benefits and Eligibility Requirements
To be eligible for the scheme a business must meet the following criteria:
- Must be a trading company incorporated and registered in Guernsey
- Must have been trading for more than four months
- The business must not be raising more than £500,000
- The business must operate within a qualifying sector
- Must be a Guernsey based business and remain for five years
- Must have less than 25 full-time equivalent employees when the shares are issued
- Must be within seven years of the company's first commercial sale
- Funds raised must be spent within two years of the investment
- Funds raised must be used to grow or develop the business
- Investment must pose a risk of loss to capital for the investor
- Funds can't be used to buy all or part of another business
Eligible sectors
New and developing businesses from the below sectors will be eligible to apply for GEIS:
- Agriculture
- Manufacturing
- Information and communication
- Financial technology
- Creative industries
- Travel
- Security
- Education
- Professional, scientific and technical
- Health
- Gaming
- Sports, entertainment and recreation
For a full list of sectors, see the FAQs.
Fair processing notice
Any personal data provided by yourself through the course of completing this survey will be processed in accordance with the Data Protection (Bailiwick of Guernsey) Law, 2017. For further information on how your personal data will be processed, see the Fair Processing Notice.