In September 2022 the Government announced a UK-wide scheme to accelerate growth by creating Investment Zones. Three of the potential new zones are in the Tees Valley, with Middlesbrough and Hartlepool Development Corporations, and Teesside International Airport, all possible first locations under the Government’s Growth Plan.
Investment zones will have significant tax cuts and will slash red tape to incentivise investment and businesses as they aim to drive growth and unlock housing.
Areas with Investment Zones will benefit from tax incentives, planning liberalisation, and wider support for the local economy. All Investment Zone agreements will contain tax and development sites
The specific interventions in Investment Zones will include:
✔️Wider support for local growth
Potential tax incentives include:
Business Rate Relief – 100% relief from business rates on newly occupied business premises and certain existing businesses for 25 years
Enhanced Capital Allowances – 100% first year allowance for qualifying expenditure on plant and machinery assets
Enhanced Structures and Building Allowance – accelerated relief to allow businesses to reduce taxable profits by 20% of the cost of qualifying non-residential investment per year, relieving 100% of its cost of investment over five years
Employer National Insurance Contributions Relief – zero-rate employer NICs on salaries of any new employee working in the text for at least 60% of their time on earnings up to £50,270
Stamp Duty Land Tax – a full SDLT relief for land and buildings bought for use or development for commercial purposes, and for purchases of land or buildings for new residential development
Local areas will be invited to put forward potential sites for Investment Zones through an Expression of Interest process by October 14th with confirmation of these sites expected to be due by the end of 2022.
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