Tax relief scheme to encourage new investment in Isle of Man

Tynwald buildings, Douglas

Tynwald buildings, Douglas

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Treasury has launched a consultation on a proposed new scheme offering relief from income tax to investors in growing island-based businesses.

The Manx Enterprise Investment Scheme is part of a package of initiatives to boost the economy, increase business funding and grow the working population, announced by Chief Minister Allan Bell MHK in July this year.

The aim of the scheme is to encourage investment in small higher-risk trading companies, resident in the Isle of Man, by offering income tax relief to investors who subscribe for new shares. The maximum tax relief available for an individual will be £20,000 in a tax year while for a jointly assessed couple it will be £40,000. It is anticipated that the additional finance raised will help businesses to grow, resulting in additional jobs in the island and subsequent growth in the local economy.

The consultation document published this week outlines how the scheme will operate. It also addresses the criteria that the company and the investor must satisfy in order to qualify under the scheme.

The document invites responses to a number of questions and welcomes comments and suggestions about the proposals.

Closing date for submissions is Friday February 5 2016 and the document is available in the consultations section of the government website: www.gov.im/about-the-government/government/government-consultations

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