Freeports:
Are special areas that have been created by government to boost investment into parts of the country that have historically missed out. They benefit from a generous package of incentives, as well as excellent port infrastructure (sea and air), and build on the proud industrial heritages of their regions.
Incentives:
Eligible businesses in Freeport tax sites will enjoy a range of tax incentives, such as enhanced capital allowances and relief from employer National Insurance contributions (NICs) for new employees. Relief is also available on Stamp Duty Land Tax in Freeports.
Tax Reliefs:
These tax reliefs are designed to encourage the maximum number of businesses to open, expand and invest in Freeports which in turn will boost employment. The Freeports tax offer is only available in a designated Freeport tax site. These tax sites are independent and separately authorised from Freeport customs sites, but can cover the same area of land.
Economic Benefits:
Freeports offer special economic benefits to businesses setting up and growing within their boundaries. This includes 50% potential savings on set up costs when located within a Freeport and estimated savings of two years of rent over a five-year period.
The previously agreed five-year tax benefits window was extended in the summer of 2024, to September 2031, delivering a boost for businesses investing and hiring new employees in or connected with Solent Freeport. The move brings benefits to businesses to stimulate investment and provide greater certainty to investors to maximise the programme’s impact.
The tax site benefits include:
100% first year allowances for qualifying expenditure on plant and machinery which is primarily for use in a Freeport tax site.
Five years’ full relief from business rates on qualifying new properties and partial relief for expanded properties in Freeport tax sites.
0% employer NICs paid on salary up to £25,000 p/a, for three years per eligible employee hired before 6 April 2031.
10% per annum rate of structures and buildings allowance compared to 3% outside Freeport tax sites.
Total relief from Stamp Duty Land Tax on property used for qualifying commercial purposes.