Announced in March 2021, the Teesside Freeport will be the biggest Freeport in the UK. Covering 4,500 acres it offers many advantages to businesses looking to invest here, including a package of tax relief to help drives jobs, investment and growth, streamlined planning processes and simplified customs procedures.
Find out how the Teesside Freeport could be the right choice for your next investment
What is a Freeport?
Freeports are secure customs zones located at ports where business can be carried out inside a country’s land border, but where different customs rules apply. They can reduce administrative burdens and tariff controls, provide relief from duties and import taxes, and ease tax and planning regulations. While located geographically within a country, they essentially exist outside its borders for tax purposes.
The benefits of a Freeport
Companies operating within free ports can benefit from deferring the payment of taxes until their products are moved elsewhere, or can avoid them altogether if they bring in goods to store or manufacture on site before exporting them again.
Businesses benefit from:
Tax incentives are available to businesses investing within the Teesside Freeport, these include;
EMPLOYER NATIONAL INSURANCE CONTRIBUTIONS RATE RELIEF
Businesses operating in a Freeport tax site will pay 0% National Insurance Contributions for up to the three years per employee on earnings up to a £25,000 per annum.
BUSINESS RATES RELIEF
up to 100% relief from business rates on certain business premises within Freeport tax sites.
ENHANCED CAPITAL ALLOWANCES
enhanced tax relief for companies investing in qualifying new plant and machinery assets. This accelerated relief is intended to allow firms to reduce their taxable profits by the full cost of the qualifying investment in the same tax period the cost was incurred.
Businesses operating within Freeport customs sites will receive tariff benefits, including duty deferral while the goods remain on site, and duty inversion if the finished goods exiting the Freeport attract a lower tariff than their component parts.
Subject to the UK’s trade agreements, businesses may also be able to take advantage of customs duty exemption on goods that are imported into a Freeport, processed into finished goods and subsequently re-exported.
They will also be able to suspend import VAT on goods entering the Freeport. In addition, businesses operating in Freeports will be authorised to use simplified import procedures.
Where is the Teesside Freeport?
The Teesside Freeport touches on all five boundaries within the Tees Valley region. It covers 4,500 acres in total and includes the Teesworks site, Wilton International, Teesside International Airport, Port of Middlesbrough, Port of Hartlepool and Tees Dock. The map here shows the areas where the Freeport will cover.
Contact us today to find out why you should invest in Tees Valley