In his Growth Plan Statement, the then Chancellor announced the introduction of a package of measures, including planning liberalisation and generous tax reliefs, to create new investment zones.
The proposed tax reliefs go beyond those currently available for freeports, but as is the case with freeports, the tax incentives will be time-limited – in this case, for 10 years.
A summary of the proposed tax reliefs and how they compare to existing tax reliefs for freeports is set out below. The freeports tax reliefs are due to be phased out in 2026.
It is not clear when these reliefs will take effect. Sites will need to be designated as investment zones before the tax incentives are available. The then Chancellor stated that the government was in early discussions with 38 local authorities across England to establish investment zones. The government has stated that it will work with devolved administrations to set up investment zones in other parts of the UK.
It will be interesting to see whether the enhanced tax reliefs attract businesses to the new investment zones and what the impact will be on the surrounding area.
For more information on freeports and levelling up go to:
Webinar: Freeports: business opportunity or hype?
Where to invest: the geographic impact of Brexit
Return to Mini Budget 2022.
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