Find out if you can claim enhanced structures and buildings allowance relief on qualifying expenditure on structures and buildings in a UK Freeport tax site.
Where we refer to a ‘Freeport’ on this page, this also applies to ‘Green Freeports in Scotland’ unless otherwise stated.
A Freeport tax site is an area of land where businesses can claim certain tax reliefs. They’re independent and separately authorised from Freeport customs sites, but they can cover the same area of land.
Find out more about Freeports.
You can claim enhanced structures and buildings allowance relief when you incur qualifying expenditure on structures and buildings in a designated Freeport tax site.
The relief can be claimed for expenditure incurred from the date a Freeport tax site is designated until 30 September 2026.
Check which sites are designated Freeport tax sites.
How to qualify
You must meet the requirements for claiming capital allowances on structures and buildings and the following conditions:
- you must begin construction on the building or structure when it’s in a Freeport tax site (construction begins when you enter into the first contract)
- you must bring the building or structure into qualifying use when it’s in a Freeport tax site and on or before 30 September 2026
- you must incur the qualifying expenditure on the building or structure when it’s in a Freeport tax site and on or before 30 September 2026
- you must be registered for either:
- Corporation Tax
- Income Tax
How to apportion the relief
You must apportion the relief between either the:
- enhanced rate of structures and buildings allowance
- normal rate of structures and buildings allowance
This apportionment will take place when either:
- part of the building or structure is out of the Freeport tax site
- you bring part of a structure or building into qualifying use after 30 September 2026
How much relief you can claim
You can claim 10% of the Freeport qualifying expenditure each year if you meet all the required conditions.
You can make a claim for the relief for 10 years from the allowance period start date.
The allowance period start date is the later of when the:
- building or structure is first used for a non-residential purpose
- qualifying expenditure is incurred
Examples of relief you can claim
Example 1
You built a warehouse costing £1,200,000 in a Freeport tax site. All contracts for construction were entered into after the date the Freeport tax site was designated.
The warehouse was completed on 22 March 2024 and you started to use it in your logistics business from 1 April 2024. You prepare accounts for each year ending on 31 March.
In the chargeable period to 31 March 2025, you can claim 10% for the year.
10% × £1,200,000 = £120,000
Total claim £120,000 for the year ended 31 March 2025.
Example 2
You built a factory costing £2,000,000 which was 60% in a Freeport tax site and 40% in an area which is not a Freeport tax site. All contracts for construction were entered into after the date the Freeport tax site was designated.
The factory was completed on 13 July 2023 and you started to use it in your manufacturing business from 1 August 2023. You prepare accounts for each year ending on 31 July.
In the chargeable period to 31 July 2024, you can claim 10% a year on 60% of the expenditure and 3% a year on 40% of the expenditure.
60% of £2,000,000 = £1,200,000
40% of £2,000,000 = £800,000
10% of £1,200,000 = £120,000
Plus 3% of £800,000 = £24,000
Total claim £144,000 for the year ended 31 July 2024.
How to claim the relief
You must have an allowance statement to claim the relief and this must state:
- that you want the qualifying expenditure to be Freeport qualifying expenditure
- the amount of Freeport qualifying expenditure
Find out how to claim.
