Across England, the Government plans to designate 38 areas as investment zones. These zones will benefit from relaxed planning laws and special tax reliefs, such as:
- Employers’ Class 1 NIC will be at 0% on the earnings of new staff employed in the zone for at least 60% of their working hours. This will be capped at earnings of £50,270 per person (earnings above that level will be subject to normal employers’ NIC).
- A 100% first-year capital allowance will be available on the cost of all equipment used within the zone.
- There will be no SDLT payable on acquiring commercial buildings bought for use or development in the zone.
- There will be no SDLT on land or building acquired to build or convert into new homes in the zone.
- A 100% relief from business rates will be available on newly occupied buildings.
Before the zone is activated, the local authorities for the proposed investment zones must give consent. In return, they will receive all of the additional business rates that have been collected from within the zone. They will, however, lose some control over planning decisions.
Designated investment zones will also be available across Scotland, Wales and Northern Ireland, providing that the devolved administrations for those areas agree.