Tax and customs benefits and incentives
Locating or developing a business on employment land within one of our three tax sites at South Yard, Langage and Sherford comes with significant financial incentives designed to encourage investment and optimise development.
These benefits fall into three categories. The cash and cashflow benefits are available until 30 September 2031, while the Customs Benefits are available indefinitely subject to a successful application to HMRC.
1. Cash Benefits
These directly reduce costs and improve your bottom line:
National Insurance Relief
Reduces the cost of employing staff. For the first 36 months, qualifying employees earning up to £25,000 per year (hired before 6 April 2031) attract reduced employer National Insurance contributions.
Stamp Duty and Land Tax Relief
Cuts costs on buying or leasing land and buildings. Transactions that meet the qualifying use are exempt from Stamp Duty.
Business Rates Relief
Lowers the cost of operating new properties. Qualifying properties receive full relief for the first 5 years, and expanding properties get partial relief. Relief applies to qualifying properties established by 30 September 2031 and therefore can last up to five years beyond this date.
2. Cashflow Benefits
These reduce taxes in the early years to ease cashflow and encourage investment:
Structures & Buildings Allowance
Allows faster tax write-offs for qualifying construction and renovation costs, deferring taxes.
Capital Allowance Relief
Enables quicker write-offs for qualifying equipment and machinery, also deferring taxes.
3. Customs Benefits
Encourages international trade and reduces customs costs for HMRC approved Customs Site Operators.
Tariff Benefits
- Pay no duties while goods are stored on-site.
- No duties on re-exported goods.
- Lower tariffs on finished goods leaving the Freeport (duty inversion).
VAT Benefits
- No VAT on re-exported goods.
- VAT suspended until goods leave the Freeport and enter UK circulation.
Trade Benefits
- Simplified administration and faster import procedures.
These incentives are designed to reduce costs, improve cashflow, and make international trade easier, giving businesses at PASD Freeport a competitive advantage.
Download the HMRC Freeports Induction Pack and business examples for a detailed overview and use cases.
HMRC Freeports induction pack: guidance providing information on the tax and customs measures for businesses interested in operating within a Freeport
HMRC Freeports business examples: a selection of business user journeys, operating within different sectors and operating models, covering both customs and tax site benefits within a Freeport.
Contact the Plymouth and South Devon Freeport team