Tax breaks for locating your business in a freeport area

HMRC have published detailed maps setting out the precise location of all 8 Freeport tax and customs sites in England with the latest update at the end of August. The original 8 locations were announced in the Spring 2021 Budget:

●       East (Felixstowe and Harwich)

●       East Midlands Airport

●       Humber

●       Liverpool City

●       Plymouth and South Devon

●       Solent

●       Teeside

●       Thames

More maps of Freeports customs sites and Freeport tax sites will be added after they are designated.

Businesses in these designated areas will be able to benefit from generous tax and customs duty reliefs including:

●        An enhanced 10% rate of structures and buildings allowance.

●        An enhanced capital allowance of 100% for plant and machinery.

●        Full relief from Stamp Duty Land Tax.

●        Business rates relief.

●        Relief from employer National Insurance contributions where employees spend at least 60% of their time working in the designated area.

Businesses operating in the designated areas will be able to import goods into the Freeport customs sites with simplified customs documentation and they can also delay paying tariffs. Manufacturing businesses may then manufacture goods using these imports, before exporting them again using the simplified customs procedures without paying the tariffs.

For detailed maps see: Maps of Freeports, Freeport customs sites and Freeport tax sites - GOV.UK (www.gov.uk)