2022 No. 185

Income Tax
Corporation Tax
Stamp Duty Land Tax, England

The Designation of Freeport Tax Sites (Liverpool City Region Freeport) Regulations 2022

Made

Laid before the House of Commons

Coming into force

The Treasury make the following Regulations in exercise of the powers conferred by section 113 of the Finance Act 20211.

The areas designated by these Regulations are either situated in a freeport or considered by the Treasury as being used, or likely to be used, for purposes connected with activities carried on, or likely to be carried on, in a freeport2.

Citation, commencement and interpretation1

1

These Regulations may be cited as the Designation of Freeport Tax Sites (Liverpool City Region Freeport) Regulations 2022 and come into force on 22nd March 2022.

2

In these Regulations, a reference to an area “shown edged and hatched in red” on a map is a reference to the hatched area extending up to the red edging, but not including the red edging itself.

Designation of freeport tax sites2

1

The following areas are designated as special areas3 for the purposes referred to in section 113(1)(a), (b) and (c) of the Finance Act 2021—

a

the areas shown edged and hatched in red on the map entitled “3MG Tax Site” and dated 3rd December 20214;

b

the areas shown edged and hatched in red on the map entitled “Parkside East and West Tax Site” and dated 3rd December 20215;

c

the areas shown edged and hatched in red on the map entitled “Wirral Waters Tax Site” and dated 3rd December 20216;

2

The designations made by paragraph (1) take effect on 22nd March 2022.

Rebecca HarrisMichael TomlinsonTwo of the Lords Commissioners of Her Majesty’s Treasury
EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations designate areas, known as “freeport tax sites”, as special areas for the purposes of Parts 2 (plant and machinery allowances) and 2A (structures and buildings allowances) of the Capital Allowances Act 2001 (c. 2) (“CAA 2001”) and Part 4 (stamp duty land tax) of the Finance Act 2003 (c. 14) (“FA 2003”).

Section 45O in Part 2 of CAA 2001 provides that expenditure incurred by a company on the provision of plant and machinery for use in a freeport tax site qualifies for enhanced capital allowances if certain conditions are met.

Section 270BNA in Part 2A of CAA 2001 provides that expenditure incurred on non-residential structures and buildings situated in a freeport tax site qualifies for an enhanced annual rate of structures and buildings allowances if certain conditions are met.

Section 61A in Part 4 of and Schedule 6C to FA 2003 provides for relief from stamp duty land tax for acquisition of land situated in a freeport tax site if certain conditions are met.

A Tax Information and Impact Note covering these instruments was published on 3rd March 2021 alongside Spring Budget 2021 and is available on the website at: https://www.gov.uk/government/publications/designation-of-freeport-tax-sites/designation-of-freeport-tax-sites. It remains an accurate summary of the impacts that apply to this instrument.