New Investment Zones
The Government is in discussion with 38 English local authorities to set up ‘Investment Zones’ within their area. A further 24 specific sites have also been earmarked for development.
Each Investment Zone (IZ) will offer generous, targeted and time-limited tax cuts for businesses along with liberalised planning rules to release more land for housing and commercial development. These will be hubs for growth, encouraging investment in new shopping centres, restaurants, apartments and offices, and creating thriving new communities. The tax incentives under consideration are:
- 100% Business Rates Relief – on newly occupied or expanded business premises in IZ’s.
- 100% First Year Allowance – for companies with qualifying plant and machinery expenditure for use in IZ’s.
- Enhanced Structures and Buildings Allowance – to allow businesses to reduce their taxable profits by 20% of the cost of qualifying new commercial property per year, relieving 100% of their cost of investment over 5 years.
- Zero-rate Employer NIC – on salaries of any new employee working in the IZ for at least 60% of their time, on earnings up to £50,270 per year, with Employer NIC’s being charged at the usual rate above this level.
- Full Stamp Duty Land Tax (SDLT) Relief – for land and buildings bought for commercial use or development, and for purchases of land or buildings for new residential projects.
A list of the 38 local authorities taking part in discussions can be viewed in this factsheet – Southampton is one www.gov.uk/government/publications/the-growth-plan-2022-factsheet-on-investment-zones.
For more information on this, please contact Alan Rolfe on 023 8046 1235.