The green freeport bidding process opened on 25 March 2022 and will close at 10am on 20 June 2022. Successful bidders will be able to access a range of tax reliefs comparable with the English freeports. Timings for the introduction of tax reliefs are expected to be announced after completion of the bidding process. The two green freeports in Scotland are expected to become operational from spring 2023.
Tax reliefs will include:
Land and buildings transaction tax relief: for land transactions in qualifying tax sites in Scotland where the property is to be used for qualifying commercial activity. The relief is expected to be available for five years.
Enhanced structures and buildings allowance: for the construction or renovation of structures and buildings for non-residential use in tax sites, allowing businesses to reduce their taxable profits by 10% of the cost of investment every year for ten years. Relief will apply where the asset is brought into qualifying use between the date the tax site is designated and 30 September 2026.
Enhanced capital allowances: providing enhanced tax relief for companies investing in qualifying new plant and machinery assets, for qualifying expenditure incurred after the tax site is designated until 30 September 2026.
Employer NICs relief: introducing a zero rate of secondary class 1 NICs for employees in tax sites on earnings up to £25,000 per annum. The relief will in principle be available for up to nine years from April 2022, subject to review by the UK government, and in any case end no earlier than April 2026.
Non-domestic rates relief: providing up to 100% relief from non-domestic rates on certain properties and property improvements within designated tax sites. Relief would apply for up to five years
The green freeport bidding process opened on 25 March 2022 and will close at 10am on 20 June 2022. Successful bidders will be able to access a range of tax reliefs comparable with the English freeports. Timings for the introduction of tax reliefs are expected to be announced after completion of the bidding process. The two green freeports in Scotland are expected to become operational from spring 2023.
Tax reliefs will include:
Land and buildings transaction tax relief: for land transactions in qualifying tax sites in Scotland where the property is to be used for qualifying commercial activity. The relief is expected to be available for five years.
Enhanced structures and buildings allowance: for the construction or renovation of structures and buildings for non-residential use in tax sites, allowing businesses to reduce their taxable profits by 10% of the cost of investment every year for ten years. Relief will apply where the asset is brought into qualifying use between the date the tax site is designated and 30 September 2026.
Enhanced capital allowances: providing enhanced tax relief for companies investing in qualifying new plant and machinery assets, for qualifying expenditure incurred after the tax site is designated until 30 September 2026.
Employer NICs relief: introducing a zero rate of secondary class 1 NICs for employees in tax sites on earnings up to £25,000 per annum. The relief will in principle be available for up to nine years from April 2022, subject to review by the UK government, and in any case end no earlier than April 2026.
Non-domestic rates relief: providing up to 100% relief from non-domestic rates on certain properties and property improvements within designated tax sites. Relief would apply for up to five years
