HM Revenue and Customs (HMRC) has published maps showing Freeport locations in the UK, their outer boundaries and the Freeport tax sites within them.
The maps for Humber, Thames and Teesside can all be found at GOV.UK with a note warning that the map of Humber Freeport includes a proposed tax site at Goole which has not been designated.
After designation, businesses in these Freeport tax sites will be able to benefit from a number of tax reliefs.
If needed, the Government may at an appropriate point introduce further guidance for businesses claiming Freeport tax reliefs, to reflect the outcome of ongoing discussions between the UK and the EU about the Northern Ireland Protocol.
HMRC also points out that an enhanced 10% rate of structures and buildings allowance for constructing or renovating non-residential structures and buildings will be available within Freeport tax sites in Great Britain.
This means firms’ investments will be fully relieved after 10 years compared with the standard 33 1/3 years at the 3% rate available nationwide.
On 29 October, the Government published:
- The Designation of Freeport Tax Sites (Thames Freeport) Regulations 2021 (www.legislation.gov.uk/uksi/2021/1195/contents/made)
- The Designation of Freeport Tax Sites (Teesside Freeport) Regulations 2021 (www.legislation.gov.uk/uksi/2021/1194/contents/made)
- The Designation of Freeport Tax Sites (Humber Freeport) Regulations 2021 (www.legislation.gov.uk/uksi/2021/1193/contents/made).
These all designate “freeport tax sites” as special areas for the purposes of Parts 2 (plant and machinery allowances) and 2A (structures and buildings allowances) of the Capital Allowances Act 2001 and Part 4 (stamp duty land tax) of the Finance Act 2003.
