The Treasury has awarded freeport status to eight locations across the UK for the purpose of claiming specific tax reliefs. One such measure is that enhanced capital allowances will be available to companies investing in qualifying capital expenditure on plant and machinery until 30 September 2026 for use within the freeport tax site.
Allowance will be given at the rate of 100% of the qualifying expenditure in the tax period in which it is incurred. Similarly, enhanced tax allowances at the rate of 10% will also be available for the construction of new, or renovation of existing, non-residential structures and buildings located within the freeport site and will reduce the tax write off period from 33 and one third years to 10 years. Purchasers of land and buildings situated inside freeport sites in England will also enjoy relief from Stamp Duty Land Tax, as along as the property is acquired and used in a “qualifying manner”.
If you are affected and would like further advice or support from us regarding freeports, please don’t hesitate to speak to your usual contact at Mercer & Hole or another member of our team.