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Purpose and scope  

These guidelines apply if you are operating, or intending to operate, within an Investment Zone.Ìý 

They will also be helpful to:  

• Investment Zone governing bodies 

• professional bodies that represent and advise clients on Investment Zones  

We’ve developed these guidelines to help you understand the tax reliefs available in Investment Zones, including:  

• the tax reliefs available 

• who can claim  

• how to claim 

• common errors 

• helping you to lower the risk of making errors 

• advising what records to keep 

• what to do if you make a mistake 

These guidelines are not for customers who are operating in a Freeport. The HMRC UK Freeports information pack provides further details. You can also read Help with Freeports – Guidelines for Compliance.Ìý

How to use these guidelines 

These guidelines do not represent any change in the law or HMRC policy. You should read these guidelines alongside HMRC’s published guidance. You will be directed to the guidance within these guidelines.Ìý

You should use these guidelines to help make informed decisions, based on your individual circumstances.  

Following these guidelines may help reduce your organisation’s risk of: 

• making errors 

• penalty charges 

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Investment Zones were announced in the UK in the 2023 Spring Budget, with the aim of boosting growth in key sectors. These zones typically cover a defined economic area.Ìý

Businesses located within an Investment Zone may be eligible to claim a range of tax reliefs, including enhanced capital allowances for expenditure on plant and machinery, enhanced structures and buildings allowance and relief from employer National Insurance contributions (NICs) for new employees.Ìý 

Relief from Stamp Duty Land Tax (SDLT) is available for certain acquisitions of land and buildings in Investment Zones in England. There is a similar relief for Land and Buildings Transaction Tax (LBTT) in Scottish Investment Zones and Land Transaction Tax (LTT) for Investment Zones in Wales.Ìý

In addition, the local authorities hosting the Investment Zone tax sites will offer discretionary relief on business rates, or non-domestic rates, to further reduce the cost of businesses locating within the site.Ìý

Investment Zones special tax sites 

Tax reliefs are not available to everyone who operates in an Investment Zone. As well as being within the boundary of an Investment Zone, you must operate in a specially designated area within an Investment Zone. In addition, you must meet certain specific criteria.Ìý

These areas are called Investment Zone special tax sites. Investment Zone special tax sites need to meet certain criteria, demonstrating that the sites are underdeveloped as the tax reliefs are designed to encourage new activity and land development.Ìý

You can find maps of Investment Zones and Investment Zone tax sites on °Ç¸ç³Ô¹Ï.Ìý