2023 No. 812

Social Security

The National Insurance Contributions Act 2022 (Freeports and Investment Zones) (Consequential Amendments) Regulations 2023

Made

Laid before Parliament

Coming into force

The Treasury make the following Regulations in exercise of the powers conferred by sections 1(5) and (6), 3(2) and 12(4) of the National Insurance Contributions Act 20221 and section 175(3) and (4) of the Social Security Contributions and Benefits Act 19922.

Citation and commencement1

These Regulations may be cited as the National Insurance Contributions Act 2022 (Freeports and Investment Zones) (Consequential Amendments) Regulations 2023 and come into force on 8th August 2023.

Amendment of the National Insurance Contributions Act 2022 (Application of Part 1) Regulations 20222

1

The National Insurance Contributions Act 2022 (Application of Part 1) Regulations 20223 are amended as follows.

2

In the heading for Part 2, for “freeport” substitute “special tax site”.

3

In the heading for regulation 3, for “freeport tax sites” substitute “special tax sites”.

4

In regulation 4—

a

in the heading, for “freeport conditions” substitute “applicable conditions”,

b

in paragraph (1), for “(freeport conditions)” substitute “(applicable conditions)”, and

c

in sub-paragraph (a), for “freeport tax site” substitute “special tax site”.

Amendment of the Social Security Contributions (Freeports) Regulations 20223

1

The Social Security Contributions (Freeports) Regulations 20224 are amended as follows.

2

In regulation 2—

a

for “freeport condition” substitute “applicable condition”, and

b

in the heading, for “freeport conditions” substitute “applicable conditions”.

3

In regulation 3—

a

in sub-paragraph (b), for “freeport tax site” substitute “special tax site”, and

b

in sub-paragraph (c), before “condition”, insert “applicable”.

4

In regulation 4—

a

in paragraph (1)(b), for “freeport tax site” substitute “special tax site”, and

b

in paragraph (1)(c), before “condition”, insert “applicable”.

Andrew StephensonStuart AndersonTwo of the Lords Commissioners of His Majesty’s Treasury
EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the National Insurance Contributions Act 2022 (Application of Part 1) Regulations 2022 (S.I. 2022/307) and the Social Security Contributions (Freeports) Regulations 2022 (S.I. 2022/313). They make amendments in consequence of those made to the National Insurance Contributions Act 2022 (c. 9) (“NICA 2022”) by the Finance (No. 2) Act 2023 (c. 30), which extended the power to designate special tax sites (in section 113 of the Finance Act 2021 (c. 26)) to allow designation of such sites in or connected with both freeports and investment zones located in Great Britain.

Regulation 2 ensures that provisions on how employers claim the zero-rate of secondary National Insurance contributions (“NICs”) relief after year end in respect of mariners apply to special tax sites in both freeports and investment zones.

Regulation 3 ensures that provisions exempting employers from having to meet the condition at section 2(1)(d) of NICA 2022 to claim the zero-rate of secondary NICs relief apply to special tax sites in both freeports and investment zones. Those exemptions apply in respect of employees with disabilities, who are pregnant or who have given birth within the previous 52 weeks.

A Tax Information and Impact Note covering this instrument was published on 15th March 2023 and is available on the website at https://www.gov.uk/government/publications/investment-zone-special-tax-sites/investment-zone-special-tax-sites-with-enhanced-tax-and-national-insurance-contributions-reliefs. It remains an accurate summary of the impacts that apply to this instrument.