The tax sites for the Forth Green Freeport (FGF) have been "designated" with effect from 12 June 2024. This means that, from 12 June 2024, businesses investing in the FGF tax sites will be able to benefit from the various freeport tax reliefs.
Where are the tax sites ?
A map of the Forth Green Freeport outer boundary is available here.
There are four tax sites, and plans are now available at the following links:-
Tax reliefs for investment in the Green Freeport tax sites
The tax reliefs available for investment in the green freeport tax sites include:-
- enhanced capital allowances,
- enhanced structures and buildings allowances,
- a relief from Employer's National Insurance Contributions,
- Land and Buildings Transaction Tax (LBTT) reliefs, and
- exemption from non-domestic (business) rates.
The tax reliefs are only available for investment in the tax sites, not in the wider green freeport area. The enhanced capital allowances are UK tax reliefs that will be operated by HMRC, the LBTT relief is a Scottish Government tax relief which will be operated by Revenue Scotland, and the business rates exemption will be operated by the relevant local authority.
How long will the tax reliefs be available ?
The current time period for the tax reliefs is five years from the date the tax sites are designated, however, the UK Government has now extended the time limit for the UK freeport tax reliefs to 30 September 2031 (i.e. ten years rather than five). The Scottish Government has confirmed that it will extend the window for the LBTT relief and non-domestic rates relief to 30 September 2034. It is understood that this will be subject to a review in 2028 to look at uptake, impact and progress towards overall programme goals (see letter from the Cabinet Secretary for Wellbeing Economy, Net Zero and Energy in the Scottish Government).
Contributors
Director of Corporate Tax
Solicitor
