The Government's "free port" prospectus (linked below) includes intentions to introduce enhanced capital allowances and business rates reliefs in order to encourage investment in under-developed areas.
What are free ports?
Free ports are economic zones where goods can enter the UK with zero tariffs prior to manufacturing and export or entry into the domestic market. The intention of the scheme is to maintain the competitiveness of British industry post-Brexit. Secondly, whilst the consultation was undertaken prior to the pandemic, it is hoped that the initiative will stimulate a post-COVID economic recovery and forms part of the government's "levelling up" agenda. To incentivise participation in the scheme, the government has stated its intention to enable investors to benefit from a number of tax reliefs, of which capital allowances and business rates form a part.
The link to the prospectus is here. The deadline for applications to the scheme is noon on Friday 5 February 2021.
