Stamp duty land tax (SDLT) relief in Freeports: first guidance published
Budget 2021 included the announcement that several new Freeport sites would be designated, with a number of tax reliefs available to businesses operating within them. For a business looking to move into a Freeport site, the welcome news is that there will be relief from SDLT. HMRC has now published some initial guidance - what do businesses need to know?
One feature of a Freeport site is a relaxation of customs rules, allowing goods to move into and out of the site like a form of hub. However, there are other reliefs - including from SDLT. HMRC has now published guidance on this relief. In order to qualify, a business must buy land or buildings in a designated site that will be used in a qualifying way. The SDLT relief also applies to leased land or buildings. To be using the land or buildings on a qualifying way, it must be used:
- in a commercial trade or profession;
- for development or redevelopment for resale (but not as residential property);
- for letting to another person who pays rent, and who does not use the building as residential property.
Where at least 90% of the purchase prices for qualifying land or buildings, relief from SDLT is available in full. If less than 90% of the purchase prices for qualifying land or buildings, relief is available on the portion of the price that relates to the qualifying part, as long as this is at least 10% of the total price. The claim must be made on a land transaction return within 14 days of the transaction, and all claims must be made by 14 October 2027 at the latest. HMRC's guidance contains further information, including several helpful examples.
Related Topics
-
The tax incentive to do a thorough stock-take
The annual stock-take isn’t exactly your favourite thing to do. You know resources could be better spent elsewhere so you try to get through it as quickly as possible. Why might it be worth a little more of your time?
-
MONTHLY FOCUS: STARTING TO THINK ABOUT VAT
The VAT registration threshold has barely changed over the last decade. As a result, more businesses are having to register. In this Focus, we look at the key considerations for a business that needs to register, or one that may be considering doing so on a voluntary basis.
-
Unused sales suppression tools can still trigger penalties
HMRC has published a new compliance factsheet explaining the penalties that can apply where a business possesses an electronic sales suppression (ESS) tool, even if it has never actually been used to suppress a sale. What do you need to know?