The manufacturing sector is a main provider of full time employment on the Island and is second only to finance in terms of growth and contribution to the economy. Some two hundred firms are engaged in this sector, varying from small firms to major employers all of which are eligible for support from the Government under a discretionary financial incentive scheme. Industrial concerns, ranging from small cottage industries to large factories, produce some 10% of the Island's 'national income and provide jobs for around 4,000 people. The Island has its own Customs and Excise Service and an agreement with the UK ensures that goods can move freely between the two countries without delay or documentation. This Customs and Excise Agreement enables trading companies managed from the Isle of Man to benefit from the EU compliant VAT systems when trading between European countries.

DTI Support to Industry

The Department of Trade and Industry is particularly keen to stimulate high value added industries which are compatible with this Islands superb environment.

Aids and Incentives for Industry

It is the policy of the Government of the Isle of Man to promote the continuing growth and diversification of the industrial sector and export businesses within the service sector in order to increase their contribution to the national income and to extend the range of employment and income earning opportunities assessible to Manx residents. Financial aids are available to established Island concerns and to incoming enterprises.


GOVERNMENT GRANTS

It is the policy of the Government of the Isle of Man to promote the continuing growth and diversification of the industrial sector and export businesses within the service sector in order to increase their contribution to the national income and to extend the range of employment and income earning opportunities assessible to Manx residents.
Financial aids are available to established Island concerns and to incoming enterprises. The main criteria governing eligibility are:-

1. That the development shall not diminish the existing amenities of the Isle of Man and the excellence of the scenic environment
2. That the activities of the enterprise will create a high added value per employee
3. That the project forecasts will show a good level of profitability and a good return on the capital investment

The Island's industrial sector is already well-diversified with efficient companies taking on a wide variety of activities. The Government's aim is to foster the kinds of investments that will help to maintain a sound balance of diversification and increase the level of exports from the Island.

The Government's aids and incentives are amongst the most attractive in the western world. The scheme adopted by the Government is based upon a recognition that, even for potentially successful investments, the first few years of any project can be the most difficult and can generate strains on a company's liquidity. This is why the Government offers cash grants towards investment in fixed assets and substantial loans at modest rates of interest towards investment in working capital.

To companies which satisfy the environmental and financial criteria laid down by the Isle of Man Government, assistance is available up to the following levels:-

CAPITAL GRANTS
 40 per cent of costs of new buildings, building improvements, new plant and machinery

OPERATING GRANTS
a)First Year Expenses
40 per cent of non-recurring costs associated with the establishment of a project such as professional fees for the preparation of a business plan, legal fees, transfer of equipment and key personnel and the setting up of an adequate system of financial management accounting. Other special costs may be considered for grant support at the discretion of the Department of Trade and Industry.

b) Training Costs
50 per cent of special training costs incurred by employers operating an approved training scheme. Separate assistance is also given towards apprentice training.

c) Marketing Costs
40 per cent of specific new marketing ventures. Isle of Man manuafacturers may participate in Joint Ventures sponsored by the UK's BOTB subject to prior clearance from the Island's Department of Trade and Industry.

d) Energy Conservation
40 per cent of investments designed to conserve energy and reduce costs

e) Micro-processing Technology
40 per cent of costs of employing consultants to advise on methods of applying micro-processing technology to manufacturing processes

f) Quality Assurance
40 per cent of recognised costs of pursuing quality assurance standards such as BS5750

LOANS
50 per cent of working capital requirements at modest interest rates with deferment of commencement of repayment for two years

RENT REDUCTION
Should a company with an approved project wish to rent a new factory from a private developer, rather than build its own with grant assistance, the rent to be paid may be reduced to reflect the value of the grant foregone.

PROFITS TAXATION
Income tax rate is 10 per cent on undistributed company profits. 100% first year capital allowances are available on new buildings, improvements to buildings and plant and machinery. For taxation purposes, grants received on capital purchases are not deducted from the allowance entitlement.


For further information please visit:
Government Grants

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