Investment Zones tax sites to offer added benefits for businesses

• Two Investment Zones designated in Scotland to establish UK-wide Investment Zones network.
• Investment Zones with designated tax sites offer tax benefits and growth support for businesses in areas with strong potential for economic growth.
• Eligible businesses located in designated tax sites can benefit from the tax reliefs.

Businesses across the UK are set to benefit from Investment Zones, intended to support economic and business growth and innovation, as the new designated tax sites in Scotland have been confirmed.

Investment Zones are new hubs for investment and innovation, designed to help businesses grow in parts of the UK that have previously underperformed economically. They offer favourable environments and opportunities for businesses to grow, support creation of highly skilled jobs and have a positive effect on communities.

Seven Investment Zones across the UK now include designated tax sites. Eligible businesses located in tax sites can access a range of tax reliefs, including relief on employer National Insurance Contributions (NICs), Business Rates, Stamp Duty Land Tax (SDLT) or equivalent in Wales and Scotland, Enhanced Structures and Buildings Allowance, and Enhanced Capital Allowances – alongside wider support on planning, infrastructure, innovation and skills.

Visit GOV.UK to find out more about Investment Zonesand the designated tax site locations.

Jonathan Athow, HMRC Director General for Customer Strategy and Tax Design, said:

“Investment Zones across the UK are creating thriving business hubs centred around growth, highly skilled jobs and benefitting the local communities.

“The tax sites can offer real benefits and tax reliefs to eligible businesses – helping them grow and invest in their future.”

The UK now has a total of 12 Investment Zones:

• 8 in England
• 2 in Scotland
• 2 in Wales.

Details on the Enhanced Investment Zone in Northern Ireland will be published once available.

The zones support five priority sectors:

• advanced manufacturing
• green industries
• creative industries
• digital and technology
• life sciences.

Case Study

‘Being based at an Investment Zone means we can play a greater part in our local community’

Elliot Street is a former doctor turned CEO of Inovus Medical, which designs and manufactures surgical training technologies. The company is based at the Liverpool tax site.

Inovus Medical received direct investment through the Investment Zones programme, which helped create several new jobs and grow the business. Elliot says the benefits of locating within the zone have gone far beyond the direct financial support.

Elliot Street, said:

“The support we received from the government has been significant. It meant that we could expand the company – attracting high quality talent – and make some critical investments, which will help us drive growth in our revenue. It’s not just about the financial support we have received – for Inovus Medical, being based at an Investment Zone means we’re part of a business community that supports the local area and local people.”

Businesses based at tax sites can benefit from tax reliefs and subsidies that allow them to re-invest and enable the business to grow.

“The Business Rates relief and the employer National Insurance Contributions relief has allowed us to invest that money back into job creation. This is really important for our sector.”

Inovus Medical used the investment to build a surgical simulation suite and launch a skills programme where 16 to 18-year-olds from surrounding areas can gain practical work experience in life sciences. The company hopes to support 250 young people through the programme and Elliot says seeing the impact on people and the local community has made the whole effort worthwhile.

“Investment Zones are so important because it’s all about the community we create. If you invest in very motivated people, who really care about the community that they've built a business in, and you give them the additional resources to go and do good in that community, it's really powerful. The rewards speak for themselves.”

Notes to Editors

1. More information on Investment Zones including how to check if your business could be eligible for tax reliefs.
2. Eligible businesses locating within a specially designated tax site within an Investment Zone may be eligible for tax reliefs including: Business Rates, SDLT (or equivalent in Wales and Scotland), Employer NICs, Enhanced Structures and Buildings Allowance, and Enhanced Capital Allowances. Not all Investment Zones have designated tax sites. These tax reliefs will be available from the date the tax site is designated until 30 September 2034. The availability date for Wales and Scotland is not yet confirmed.
3. Details on the Enhanced Investment Zone in Northern Ireland will be published once available. For more information on the proposed policy approach, see the Northern Ireland Enhanced Investment Zone policy prospectus.
4. Follow HMRC’s Press Office on X @HMRCpressoffice