Freeports Q&A

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’.