Ahead of the Autumn Statement, the government has announced that the investment zone and freeport tax reliefs will be extended from five to 10 years.
A programme for investment zones was set out in the Spring Budget 2023. The government plans for 12 zones to be established in the UK, including four outside England. The investment zones in England will now be provided with £160m of support over a ten-year period, which can be used flexibly between spending and tax incentives. The tax incentives include enhanced capital allowances, stamp duty land tax relief and 100% business rates relief.
The UK Government will work with the Scottish and Welsh governments with the intention of delivering the same extension to investment zones and freeports in Scotland and Wales and will continue to work with stakeholders on how best to support investment in Northern Ireland.
In addition to this extension, the government has also launched England’s third investment zone in West Yorkshire. This investment zone is based around the region’s universities in Huddersfield, Bradford and Leeds and the cluster of life sciences businesses thriving in the area. The government predicts this zone could create more than 2,500 new jobs across the region over the next five years and unlock £220m of private sector investment. Other investment zones were previously announced in South Yorkshire and the Liverpool City Region.
ICAEW’s Tax Faculty is recognised internationally as a leading authority and source of expertise on taxation. The faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.