Key benefits for investors
Freeports are designated areas where trade and customs facilitations allow goods to be more easily imported, assembled, and exported. They also include tax sites, which encourage investment to take advantage of these opportunities, and stimulate local economic growth. This means that goods entering the Anglesey freeport will not be subject to usual UK tax and customs measures until they enter the UK market – and if they are reexported, they will not be subject to the usual UK tax measures. This makes freeports highly attractive to investors looking to transit goods through the UK, but also seeking to maintain commercial competitiveness by not having to be caught up in the red tape of UK customs processes.
- Anglesey Freeport will facilitate streamlined customs procedures, which will reduce the time and administrative burdens associated with importing and exporting goods. The Freeport will provide the option of moving goods between customs sites and from other special lands (e.g. customs warehousing) to the Freeport using a simplified declaration process. In addition, businesses operating within the Freeport can benefit from more efficient supply chain management by consolidating their manufacturing, storage and distribution operations in one location, leading to significant supply chain efficiencies.
- The customs site also enables duty deferral or elimination of duties, where goods can be imported to the customs site without paying customs duties or taxes until they leave the site and enter the domestic market. Duties may be eliminated entirely if the goods are re-exported or used in the manufacture of products for export.
- Furthermore, when declaring non-UK goods stored or processed in the Freeport to the GB market authorities, authorised businesses can calculate import duties based on the value of inputs or the finished product, whichever is most beneficial.
- Eligible businesses in Freeport tax sites will enjoy a range of tax incentives, such as enhanced capital allowances and relief from employer National Insurance contributions for new employees. The Welsh Government proposes to offer a specific Land Transaction Tax relief on relevant land transactions within qualifying tax sites in Wales where that property is to be used for qualifying commercial activity, although this is subject to confirmation and will require legislation to be laid.
- These tax reliefs are designed to encourage businesses to open, expand and invest in Freeports which in turn will boost employment through accumulative effects.
- Employers with premises in a Freeport tax site will be able to apply a zero rate of secondary Class 1 National Insurance contributions on the earnings of new employees who spend 60% or more of their working time in the tax site.
- Enhanced structures and buildings allowances are available to firms constructing or renovating structures for non-residential use in a Freeport tax site at a higher rate of 10% compared to the existing national rate of 3%.
- Enhanced capital allowances are available for companies investing in qualifying new plant and machinery assets. This allowance is a 100% enhanced capital allowance for plant or machinery primarily for use in a Freeport tax site.
- Digital Trade Corridors combine customs and trade facilitations in freeports with the latest supply chain and data handling technologies, blockchain encryption and state-of-the-art auditing programmes to facilitate the flow of trade while ensuring that governments have the information they need to move to intelligence based checks and for the process to move from a transaction based to a systems based operating model.
- Digital Trade Corridors therefore allow businesses to use the full potential of the customs flexibilities the Freeport offers, and reduce the complex checks and processes which would usually accompany the movement of goods.
- Anglesey Freeport will ensure a new Digital Trade Corridor operates along the critical trading route from Holyhead-Dublin, as well as for goods moving across the GB land-bridge transit route to and from mainland Europe.
Customs Flexibilites
- Anglesey Freeport will facilitate streamlined customs procedures, which will reduce the time and administrative burdens associated with importing and exporting goods. The Freeport will provide the option of moving goods between customs sites and from other special lands (e.g. customs warehousing) to the Freeport using a simplified declaration process. In addition, businesses operating within the Freeport can benefit from more efficient supply chain management by consolidating their manufacturing, storage and distribution operations in one location, leading to significant supply chain efficiencies.
- The customs site also enables duty deferral or elimination of duties, where goods can be imported to the customs site without paying customs duties or taxes until they leave the site and enter the domestic market. Duties may be eliminated entirely if the goods are re-exported or used in the manufacture of products for export.
- Furthermore, when declaring non-UK goods stored or processed in the Freeport to the GB market authorities, authorised businesses can calculate import duties based on the value of inputs or the finished product, whichever is most beneficial.
Tax incentives to promote investment
- Eligible businesses in Freeport tax sites will enjoy a range of tax incentives, such as enhanced capital allowances and relief from employer National Insurance contributions for new employees. The Welsh Government proposes to offer a specific Land Transaction Tax relief on relevant land transactions within qualifying tax sites in Wales where that property is to be used for qualifying commercial activity, although this is subject to confirmation and will require legislation to be laid.
- These tax reliefs are designed to encourage businesses to open, expand and invest in Freeports which in turn will boost employment through accumulative effects.
- Employers with premises in a Freeport tax site will be able to apply a zero rate of secondary Class 1 National Insurance contributions on the earnings of new employees who spend 60% or more of their working time in the tax site.
- Enhanced structures and buildings allowances are available to firms constructing or renovating structures for non-residential use in a Freeport tax site at a higher rate of 10% compared to the existing national rate of 3%.
- Enhanced capital allowances are available for companies investing in qualifying new plant and machinery assets. This allowance is a 100% enhanced capital allowance for plant or machinery primarily for use in a Freeport tax site.
Digital Trade Corridor
- Digital Trade Corridors combine customs and trade facilitations in freeports with the latest supply chain and data handling technologies, blockchain encryption and state-of-the-art auditing programmes to facilitate the flow of trade while ensuring that governments have the information they need to move to intelligence based checks and for the process to move from a transaction based to a systems based operating model.
- Digital Trade Corridors therefore allow businesses to use the full potential of the customs flexibilities the Freeport offers, and reduce the complex checks and processes which would usually accompany the movement of goods.
- Anglesey Freeport will ensure a new Digital Trade Corridor operates along the critical trading route from Holyhead-Dublin, as well as for goods moving across the GB land-bridge transit route to and from mainland Europe.
Contact us
Anglesey Freeport has now received approval of both businesses cases by the UK and Welsh Governments. Shortly, we will be agreeing our Memorandum of Understanding, which will unlock £25mil of government seed funding.
As part of this process, Stena Line and IACC are keen to work with businesses and potential investors who are keen to develop operations within the Freeport’s special customs and tax sites, and benefit from the commercial advantages which the project will bring.
If your business is interested in benefiting from the unique opportunities the Freeport offers – ranging from streamlined manufacturing processes, regulatory easements and tax incentives – please fill out the form and the team will come back to you.
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