Check if you can claim relief from Stamp Duty Land Tax in a Freeport or Investment Zone special tax site in England
Find out if you can claim relief from Stamp Duty Land Tax when buying land or buildings in a Freeport or Investment Zone special tax site in England.
You may be able to claim relief from Stamp Duty Land Tax if you’re buying land or buildings in a Freeport or Investment Zone special tax site in England.
If you’re buying land or buildings in a Freeport or Investment Zone special tax site in:
- Scotland ― the Scottish Government plan to offer Land and Building Transaction Tax relief, subject to legislation agreement
- Wales ― the Welsh Government plan to offer Land Transaction Tax relief, subject to legislation agreement
You can read more about:
- Land and Building Transaction Tax on the Scottish Government website
- Land Transaction Tax on the Welsh Government website
A special tax site is an area of land where businesses can claim certain tax reliefs. Special tax sites are sometimes known as Freeport tax sites or Investment Zone tax sites. A Freeport tax site is independent and separately authorised from a Freeport customs site, but they can cover the same area of land.
You cannot claim until the relevant Freeport or Investment Zone special tax site has been designated
Find out more about:
You can claim relief from Stamp Duty Land Tax when:
- buying any land or buildings in a special tax site (if you use the land or buildings in a qualifying way)
- buying a lease for the land or buildings, including either:
- renewing a long lease
- any rental payments for the lease
The relief can be claimed for expenditure incurred from the date a special tax site is designated until:
• 30 September 2031 for English Freeport special tax sites
• 30 September 2034 for Scottish Green Freeport, Welsh Freeport and Investment Zone special tax sites
You can still claim relief if previous owners have sold the land or buildings before the special tax site’s end date. This applies even if a previous owner has claimed relief.
Check which sites are:
How to qualify
You can claim the relief if you intend to use the land or buildings in a qualifying way.
Qualifying ways are:
- for use in a commercial trade or profession
- for development or redevelopment for resale
- letting the land or buildings to another person who pays you rent — as long as they are not used as residential property
When you cannot claim the relief
You cannot claim relief for land or buildings which are:
- purchased inside a special tax site before it’s designated or after:
- 30 September 2031 for English Freeport special tax sites
- 30 September 2034 for Scottish Green Freeport, Welsh Freeport and Investment Zone special tax sites
- to be used as residential property
- to be developed or redeveloped to become residential property
- to be held as stock of the business to be resold without having been developed or redeveloped
How much relief you can claim
You can claim full relief from Stamp Duty Land Tax on the total purchase price if at least 90% of the purchase price is for qualifying land or buildings.
If less than 90% of the purchase price is for qualifying land or buildings, you can claim relief on the portion of the Stamp Duty Land Tax for the land or buildings which qualify, so long as the price for the qualifying land or buildings is 10% or more of the total price.
You cannot claim any relief if less than 10% of the total purchase price is for qualifying land or buildings.
How to claim relief
To claim the relief you must complete and submit a land transaction return within 14 days of the transaction. Find out how to complete your land transaction return.
All claims must be made on or before:
- 30 September 2031 for English Freeport special tax sites
- 30 September 2034 for Scottish Green Freeport, Welsh Freeport and Investment Zone special tax sites
Withdrawal of the relief
There is a control period of 3 years after the date of the purchase.
During the control period you must use the land or buildings in a qualifying way.
If at any time in the control period the land or buildings are not being used in a qualifying way you must be taking reasonable steps to:
- start using the land or buildings in a qualifying way
- sell the land or buildings
If neither of these steps are being taken, the relief is withdrawn and you must:
- make a further Stamp Duty Land Tax return
- pay the tax within 30 days
Find more information in the Stamp Duty Land Tax Manual.
Examples of relief calculations
An example where relief from Stamp Duty Land Tax is claimed for land fully within a special tax site
£800,000 is paid for land wholly within a special tax site but £200,000 (25%) of the amount paid relates to land that is not intended to be used in a qualifying way.
£600,000 (75%) is paid for land in a special tax site that is to be used in a qualifying way. The Stamp Duty Land Tax is reduced by 75% of the total tax due for the whole purchase.
An example where relief from Stamp Duty Land Tax is claimed for land partly within and partly outside a special tax site
£2 million is paid for land partly within and partly outside a special tax site.
All the land situated within the special tax site is to be used in a qualifying way.
£400,000 (20%) of the amount paid is for land outside the special tax site.
£1.6 million (80%) is paid for land in a special tax site that is to be used in a qualifying way. The Stamp Duty Land Tax is reduced by 80% of the total tax due for the whole purchase.
An example where relief from Stamp Duty Land Tax cannot be claimed for land partly within and partly outside a special tax site
£5 million is paid for land partly within and partly outside a special tax site.
£500,000 is for land outside the special tax site.
£4.5 million is for land inside the special tax site.
Only £400,000 is for land which is intended be used in a qualifying way.
As £400,000 is less than 10% of the total £5 million price paid, no relief from Stamp Duty Land Tax can be claimed.
Updates to this page
Last updated 4 July 2024 + show all updates
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Added translation
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The extension details for English Freeport special tax sites, Scottish Green Freeports Welsh Freeports and Investment Zone special tax sites have been added.
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This guidance has been updated to provide information about Investment Zones.
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Welsh translation added.
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You cannot claim Stamp Duty Land Tax (SDLT) if you’re buying land or buildings in a Freeport tax site in Scotland and Wales.
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Added information about when you cannot claim relief for land or buildings which are purchased inside a Freeport tax site.
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The examples of how Stamp Duty Land tax is calculated in Freeport tax sites have been updated.
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First published.