On 19 October 2021, the United Kingdom (UK) published a tax information and impact note, setting out the broad terms as well as the anticipated impact of the 2021 Free Zone regulatory regime. The legislation was published on 18 October 2021.
The Free Zones Regulations are divided into four parts, as follows:
- citation and commencement;
- provisions concerning customs;
- provisions concerning excise goods in free zones; and
- provisions concerning value added tax (VAT).
Each of the latter three parts amend existing relevant legislation, in order to enable the operation of free zones within freeports in the UK. The legislation will come into effect on 8 November 2021.
On 21 October 2021, HM Revenue and Customs (HMRC) published draft notices concerning the operation of free zones, which can be found here. The tax information and impact note can be found here and the Free Zones legislation can be found here.