Can I Claim Office Rent and Co-working Space as a Business Expense in Guernsey?
Yes, office rent, co-working memberships and business premises costs are fully deductible against Guernsey corporate income tax as ordinary business expenses. The cost must be wholly and exclusively incurred for the purposes of the trade.
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What Revenue Service, States of Guernsey says
The Revenue Service allows deduction of business premises costs under the general rule that expenses must be incurred wholly and exclusively for the purposes of the business. Rent, telephone and utilities are listed examples. Costs that mix personal and business use must be apportioned, and purely personal costs cannot be claimed. Capital spending on premises, such as fit-out that adds lasting value, is not a direct deduction. It is covered instead by an annual wear and tear allowance, with the rates on the Revenue Service allowances sheet.
When you can claim
- Annual office lease in St Peter Port or elsewhere in Guernsey
- Co-working or hot-desk memberships with a clear business purpose
- Business rates (Guernsey paroisse rates or rates levied by the Department of the Environment)
- Service charges, building insurance and maintenance on business premises
- Remote worker using a dedicated home office room (proportionate claim based on floor area)
When you cannot claim
- Personal residential accommodation costs (no dedicated business use)
- Mixed personal/business home-office costs where the room is not exclusively used for business
- Residential property acquisition costs (capital, not revenue expenditure)
- Penalties and fines related to premises
Good to know
Pro tip: Guernsey has no VAT, so office costs are a clean deduction with no VAT recovery to track. Keep the lease agreement, service charge statements and bank evidence. For home offices, document the room's exclusive business use and calculate the proportion of total floorspace. The Revenue Service can ask for records at any time, so file them as you go and do not wait for a request.
Important: Do not send records to the Revenue Service unless asked, but keep them ready. A company return must be filed by 30 November following the year of charge even where the rate is 0%, so rent and other costs should be in the books by then.
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