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.
You can claim relief from Stamp Duty Land Tax (SDLT) when buying any land or buildings in a designated Freeport tax site, if the land or buildings will be used in a qualifying way.
You can also claim SDLT relief if you buy a lease for the land or buildings, or for any rental payments for the lease.
The relief can be claimed from the date a Freeport tax site is designated until 30 September 2026.
How to qualify
You can claim the relief if you intend to use the land or buildings in a qualifying way.
Qualifying ways are:
- 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 to be:
- used as residential property
- developed or redeveloped to become residential property
- 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 SDLT 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 SDLT 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 land or buildings which do not qualify.
Find examples of how much relief you can claim.
How to claim relief
You cannot currently claim the relief.
Once the Freeport tax sites are designated, the relief will be available to claim, if you qualify.
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To claim the relief you must complete and submit a land transaction return within 14 days of the transaction.
All claims must be made by 14 October 2027.
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 SDLT return and pay the tax with 30 days.
£800,000 is paid for land wholly within a Freeport 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 Freeport land that is to be used in a qualifying way. The SDLT is reduced by 75% of the total tax due for the whole purchase.
£2 million is paid for land partly within and partly outside a Freeport tax site.
All the land situated within the Freeport tax site is to be used in a qualifying way.
£400,000 (20%) of the amount paid is for land outside the Freeport tax site.
£1.6 million (80%) is paid for Freeport land that is to be used in a qualifying way. The SDLT is reduced by 80% of the total tax due for the whole purchase.
£5 million is paid for land partly within and partly outside a Freeport tax site.
£500,000 is for land outside the Freeport tax site.
£4.5 million is for land inside the Freeport 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 SDLT can be claimed.