The UK’s new freeports will benefit from a package of tax reliefs that will drive investment and create jobs, it has been revealed.
The news comes as the Government announced that the Freeport bidding process in England will open before the end of the year.
Under the plans, goods brought into the new UK freeports will not attract tariffs until they leave the freeport and enter the domestic market, while no duty is payable if they are re-exported.
Likewise, manufacturers located inside the free trade zones do not have to fill out customs declarations or pay additional levies, saving time and boosting the local economy.
While freeports can be established under European legislation, the UK has not taken advantage of the scheme since 2012.
Inviting sea, air and rail ports in England to start preparing for the bidding process, the Government said the first freeports could open for business as early as 2021.
“Our new Freeports will create national hubs for trade, innovation and commerce, regenerating communities across the UK and supporting jobs,” said the Chancellor of the Exchequer, Rishi Sunak.
“They will attract investment from around the world as we embrace new opportunities following our departure from the EU and will be a key driver for economic recovery as we build back better post coronavirus.”
According to the detailed consultation response, a regime of tax incentives will be used to catalyse business activity and investment within a specific area, but the exact specifics will not be confirmed until the bidding prospectus has been published.
This could include business rates relief, capital allowances, research & development tax credits, VAT and excise duty relief, Stamp Duty Land Tax relief, and Employer National Insurance Contributions relief.
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