Island Infrastructure Scheme

Applications for the second round of applications are now open and will close 30 June 2025.

The purpose of the Scheme is to trigger the development of brownfield sites that are included on the Unoccupied Urban Sites Register, as published by the Cabinet Office, and unlock their long-term economic potential. . Funding under this Scheme is made available to bridge the financial gap to enable development on these key urban sites, turning unviable development plans to viable opportunities with the minimal amount of support needed.

Funding can be sought for residential, retail or leisure, commercial or mixed use developments. An offer of financial assistance will be based on a variety of factors including (but not limited to) location, financial viability, social benefits, economic benefits, and exchequer benefit. A key element to previous successful applications is that they are not considered financial viable when compared to industry standards, and, that they create the opportunity for long-term economic return to Government.

The aim for the second round is to encourage more residentially led applications, however applications that demonstrate real economic opportunities and increase the vibrancy and social offering of the Island can be considered.

Support available

The Scheme offers a financial support, by way of a grant and/or loan, towards development projects of up to 25% of eligible expenditure as defined below. Financial support will only be paid on completion, subject to terms and conditions.

Eligible developments

For the purposes of the Scheme, applicants can only apply for funding where the proposed development or re-development is defined as falling into the following categories:

• Residential (over 8 dwellings);
• Mixed use;
• Retail;
• Leisure (including permanent car parks ‘on a case by case basis’); and
• Commercial.

In addition, applicants must ensure the following are met:

• The development falls into the eligibility as outlined in the Tynwald Scheme;
• The designated site is on the Unoccupied Urban Sites Register;
• The designated development is in line with the Island Strategic Plan 2016;
• The project must be considered to be financially unviable without support from the Scheme;
• Where the Company is using a Special Purpose Vehicle (SPV) to undertake the project, both details of the SPV and the parent company must be provided. The Department must be comfortable that the relationship is appropriate;
• For residential developments, the project plans to build or refurbish 8 or more homes on the brownfield site;
• An application form should be submitted and acknowledged by the Department before construction commences on the designated site;
• Normally only one application per site;
• The development either has planning approval, or obtains this within one year from the offer of financial support. Unless there is a 3^rd party appeal, in which case planning approval must be in place when the appeal decision is issued.

Eligible expenditure

The Department may assist on the following costs on the development:

• Materials and manual labour;
• Professional fees (e.g. architect fees, mechanical, electrical etc.);
• Hire of specialist equipment (from third parties only);
• Installation of specialist services;
• Demolition;
• Removal of contaminated land or waste; and
• Other site work to the satisfaction of the Department.

Support is not available for: -

• Land purchase and associated costs;
• Recurring costs (including rates and utilities);
• Purchase of plant and machinery;
• Government fees;
• Consumables; and
• Transport costs.

Important Note: Where internal labour is used, the applicant must be able to clearly identify and evidence the costs of the internal labour associated with the application.

The project, where possible, must use Construction Isle of Man (CIOM) members. If CIOM members cannot be used, prior approval of the Department is required. A list of members is available here: https://www.constructioniom.im/find-an-accredited-professional  

Applicant eligibility

• Be an eligible business as set out in the Island Infrastructure Scheme;
• The business or activities of the applicant must be conducted lawfully in the Island;
• Applicants must be up to date with paperwork and payments for Income Tax and NI, and also be up to date with VAT payments, or on an approved VAT payment plan; and
• If the applicant does not own the designated site, permission must be sought from the owner and this evidence presented to the Department.

Application process

Applications have now opened for second round. All applicants are encouraged to engage with the Department before applying. . Application forms are available by contacting the Enterprise Support team either through the completion of the brief online enquiry form which can be found at www.gov.im/businessenquiries (preferred) or email (iis@gov.im) or telephone (01624 687333).

For more details about the information, which is required in order to submit an application, please see the Scheme Guidance.