Her Majesty’s Revenue and Customs (HMRC) released a policy note on 30 April, 2024, regarding the extension of tax relief availability for freeport and investment zone special tax sites, extending it from 5 to 10 years.
The UK tax authority (HM Revenue and Customs) announced that businesses in special economic zones will get a tax break extension.
Companies in English freeports can enjoy these tax benefits until 2031, while those in Scottish green freeports and Welsh freeports, along with all investment zones, will have until 2034.
Freeports and investment zones are designated areas offering tax breaks to businesses operating within their boundaries.
Special tax sites offer a variety of tax reliefs aimed at incentivising development and investment. These include enhanced structures and buildings allowances, which encourage construction and renovation projects.
Additionally, there are enhanced capital allowances for plant and machinery, providing incentives for businesses to invest in equipment.
Eligible employers in these areas can also benefit from relief on secondary Class 1 National Insurance contributions for eligible new employees, with coverage extending up to £25,000 annually for a maximum of three years.
Furthermore, Stamp Duty Land Tax relief is available for special tax sites located in England, further encouraging investment and activity in these designated areas.
The initiative will come into force starting Tuesday, 21 May, 2024.
