Glossary · UK
What is Freeport?
A designated UK special economic zone offering tax incentives — including 100% first-year capital allowances, enhanced Structures and Buildings Allowance, and employer NI relief — to attract business investment.
Full Definition
UK Freeports are designated areas with special customs, tax, and planning arrangements to encourage business investment, manufacturing, and international trade. Within the Freeport tax site boundary, businesses can claim: 100% first-year capital allowances on qualifying plant and machinery (on top of the Annual Investment Allowance); an enhanced Structures and Buildings Allowance of 10% per year (vs the standard 3%); and 0% employer National Insurance on new employee earnings up to £25,000 per year for up to 3 years (extended to 5 years in some zones). SDLT relief on commercial property purchases within tax sites also applies in England. Active Freeport tax sites include East Midlands Airport, Humber, Liverpool City Region, Thames, Teesside, Solent, Plymouth and South Devon, and Felixstowe and Harwich. Investment Zones (announced 2023) offer similar tax incentives for specific sectors in areas such as West Midlands and South Yorkshire.