New investment zones will offer businesses tax cuts and reduced regulation in an attempt to drive growth and encourage investment in the UK.
The Chancellor, Kwasi Kwarteng announced that the Government are in discussion with 38 local authorities about establishing investment zones in England.
Businesses in designated zones will benefit from several tax incentives, whilst construction will receive fast track planning applications.
Over the course of 10 years, businesses will pay no business rates on newly occupied premises and will pay no National Insurance on the first £50,270 of a new employee’s annual salary, provided they work in the site for at least 60% of their time.
Companies purchasing plant and machinery assets will receive a 100% first year allowance on qualifying expenditure, and there will be a full stamp duty land tax cut on commercial buildings bought for use or development and purchases of land or buildings used for residential development.
There will also be an enhanced structures and buildings allowance, reducing taxable profits by 20% of the cost of qualifying non-residential investment per year for five years.