Humber Freeport has three designated tax sites – Hull East, Goole and Immingham.
Each of these sites provides investors with a range of investor incentives, from business rates relief and National Insurance Contribution relief, to Stamp Duty Land Tax relief.
Freeport tax sites are designed to stimulate investment, supporting the creation of jobs, new innovations and driving economic growth.
The tax site benefits can be broken up into five key areas:
Business rate relief
Full business rates relief is available to eligible new businesses within a Freeport tax site, and certain existing businesses when they expand.
The relief applies for five years from when the business first receives it.
You’ll usually get the full amount of relief, and will not need to pay business rates on your property, if you:
- started your business in the Freeport or moved there after the Freeport was set up
- expanded your business into the property after the Freeport was set up
The relief is designed to help reduce operational overheads, providing businesses with the chance to reinvest those savings into growth or innovation.
The business rates relief currently expires on September 30, 2031. However, businesses can still benefit beyond that date. If you receive your first rates relief on September 30, 2031, it will be applied up to September 29, 2036.
National Insurance Contribution relief
You can claim a zero rate of Secondary Class 1 National Insurance Contribution if you have a business premises in a freeport tax site
To claim relief, employees must spend at least 60 per cent of their working time within the freeport tax site, and have started their employment before September 30, 2031.
They must be within the first 36 months of their employment, and not have been employed by you, or a connected employer, in the previous 24 months.
Relief for employers with a business premises within a tax site can be applied at a zero rate on the earnings of all new hires up to £25,000 per year.
This is a significant incentive for businesses operating within one of our three tax sites, looking to employ a large number of people.
Stamp Duty Land Tax (SDLT) relief
You may be able to claim relief from Stamp Duty Land Tax if you’re buying land or buildings in a freeport tax site in England.
You can claim relief from Stamp Duty Land Tax when:
- buying any land or buildings in a freeport tax site, for use in a commercial trade or profession, for development or redevelopment, or if you’re letting the land to another person who pays you rent
- buying a lease for the land or buildings, including renewing a long lease, or any rental payments for the lease
You can claim full relief from Stamp Duty Land Tax on the total purchase price if at least 90 per cent of the purchase price is for qualifying land or buildings.
If less than 90 per cent of the purchase price is for qualifying land or buildings, you can claim relief on the portion of the Stamp Duty Land Tax for the land or buildings which qualify, so long as the price for the qualifying land or buildings is 10 per cent or more of the total price.
All claims must be made on, or before, September 30, 2031.
Enhanced capital allowance tax relief
You can claim enhanced capital allowance relief when you buy plant or machinery for use in a freeport tax site.
You can claim the relief, if:
- the plant or machinery is for use primarily in a designated tax site at the time the expenditure is incurred
- the plant or machinery is unused and not second-hand
- the plant or machinery is for use as part of your trading activity, or an activity arising from land where the profits or losses are treated for tax purposes as arising from a trading activity
- your business is registered for Corporation Tax
You can claim 100 per cent of the qualifying expenditure against the profits from your qualifying activity for the accounting period in which it takes place.
Claims can be made until September 30, 2031.
Enhanced structures and buildings tax relief
Businesses constructing or renovating buildings, for non-residential use, within a tax site can receive a higher relief rate of 10 per cent, compared to the existing national rate of three per cent.
The relief is available until September 30, 2031.
This significantly accelerates tax relief for businesses for their qualifying expenditure on constructing, renovating or adapting premises to suit their chosen freeport location.
You can make a claim for the relief for 10 years from the allowance period start date.
- For full details on all of the tax site benefits, view the Government’s Freeports Induction Pack online at: https://assets.publishing.service.gov.uk/media/686d413b2cfe301b5fb678b4/11632_UK_Freeports_induction_pack_v2_FEB_2025_access.pdf
