HMRC has issued guidance on how to claim relief from stamp duty land tax (SDLT) in freeport tax sites once they are approved
A freeport tax site is an area of land where businesses can claim certain tax reliefs. They are independent and separately authorised from freeport customs sites, but they can cover the same area of land.
There will be eight freeports based at Midlands Airport, Felixstowe and Harwich, the Humber region, the Liverpool City region, Plymouth, Solent, Thames and Teesside.
SDLT can be claimed when buying any land or buildings in a designated freeport tax site, if the land or buildings will be used in a qualifying way.
Relief is also available if you buy a lease for the land or buildings, or for any rental payments for the lease.
You can claim the relief if you intend to use the land or buildings in a qualifying way.
To qualify, the applicant needs to be involved in a commercial trade or profession, the site has to be earmarked for development or redevelopment for resale or the site should be lent to someone involved in the freeport site.
Relief cannot be claimed for land or buildings which are used as residential property or is not developed within three years of acquisition.
The relief can be claimed from the date a freeport tax site is designated until 30 September 2026.
Developers can claim full relief from SDLT on the total purchase price if at least 90% of the purchase price is for qualifying land or buildings. If less than 90% of the purchase price is for qualifying land or buildings, relief can be claimed on the portion of the price for land or buildings which qualify, so long as it is 10% or more of the total price.
HMRC guidance, How to claim relief from stamp duty land tax (SDLT) in freeport tax sites
