This measure extends the window to claim the tax reliefs available in Freeport and Investment Zone special tax sites from 5 to 10 years. The new sunset dates for the reliefs are:
- 30 September 2031 for all special tax sites in respect of English Freeports
- 30 September 2034 for all special tax sites in respect of Scottish Green Freeports and Welsh Freeports
- 30 September 2034 for all special tax sites in respect of Investment Zones
The tax reliefs available in special tax sites are:
- enhanced structures and buildings allowances (eSBA)
- enhanced capital allowances (ECA) for plant and machinery
- secondary Class 1 National Insurance contributions relief for eligible employers on the earnings of eligible new employees up to £25,000 per annum for up to 3 years
- Stamp Duty Land Tax (SDLT) relief, in respect of special tax sites in England
These reliefs will benefit businesses investing and hiring new employees in, or connected with, freeport or investment zones. By extending the period over which the above tax reliefs are available, it is hoped that this will stimulate investment by providing greater certainty to investors.
Extending the duration of the tax reliefs available in Freeport and Investment Zone special tax sites will:
- deliver benefits to businesses to stimulate investment
- provide greater certainty to investors to maximise the programme’s impact
This measure will take effect from 21 May 2024.
Source: gov.uk