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Freeports Q&A

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The UK government has published a Q&A clarifying a number of issues in relation to freeports including:

  • additional details on eligibility requirements for tax incentives, including confirmation that full details of the requirements will be published at a later date along with the full final tax offer;
  • confirmation that third-party employers are eligible for the enhanced structures and buildings allowance rate and the enhanced capital allowances rate;
  • confirmation that the landowner will be eligible for NICs rate relief on eligible employees in the tax site if they meet the employer eligibility criteria; and
  • information on how customs duties will apply in the freeport tax sites.

Those granted freeport status will benefit from ‘a wide package of tax reliefs’ including:

  • SDLT relief on land purchases within freeport tax sites;
  • enhanced structures and buildings allowance;
  • enhanced capital allowances;
  • employer NICs relief; and
  • business rates relief.

The Government has confirmed that the bidding period will close on 5 February 2021, and successful freeport locations will be announced in Spring 2021 and ‘introduced as soon as possible’.

Issue: 1517
Categories: News