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Tax-Free Investment Zones – How could they support your growth?
27 October 2022

In his mini-Budget, former Chancellor Kwasi Kwarteng announced plans for Tax-Free Investment Zones across England.

The Government says these new economic zones will drive growth by lowering taxes and freeing up planning to encourage development and business investment.

What are the benefits?

These zones will offer a number of advantages to the businesses that choose to operate in them, including:

  • Companies within the zones will receive 100 per cent relief on business rates for newly occupied premises. The same will apply to existing businesses if they expand within the zone.
  • Full Stamp Duty Land Tax (SDLT) relief will apply for land and property bought for commercial use or development or new residential developments.
  • Employer National Insurance contributions will be rated at zero for new employees earning up to £50,270 per year.
  • There will be a 100 per cent first-year enhanced capital allowance relief for plant and machinery to incentivise investment.

Partnership with local authorities

The scheme will involve agreeing with 38 Upper Tier Local Authorities and Mayoral Combined Authorities in England to develop dozens of Investment Zones.

They will be delivered in partnership with devolved administrations and local partners in Scotland, Wales and Northern Ireland.

The Government says it will set out further detail on Investment Zones in due course. However, a full list of local authorities working with the Government can be found here.

Link: Tax-Free Investment Zones

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