Mark Drakeford MS, Cabinet Secretary for Finance and Welsh Language
I am pleased to announce that I have today laid the draft Land Transaction Tax (Relief for Special Tax Sites) (Wales) Regulations 2024 before the Senedd Cymru. If approved, the Regulations will provide a relief from land transaction tax (“LTT”) for qualifying transactions within a designated Welsh special tax site.
Each special tax site must be designated by the UK government through regulations before the relief can become available on qualifying transactions within that special tax site. The Celtic Freeport special tax site will be the first to be designated by the UK government, with the designation taking effect on the 26 November. Freeport status will be especially welcome in this part of Wales, in the context of job losses at TATA steel. When future special tax sites are designated, I will make further regulations (subject to the Senedd Cymru’s approval) to include these new sites within the LTT special tax sites relief.
A Welsh Freeport will provide tax and customs duty incentives to new businesses establishing themselves in the Freeport area or to existing businesses in the Freeport area that expand their operations. The tax incentives include targeted relief from employer national insurance contributions and enhanced capital allowances - both UK government reserved taxes. Tax incentives will also be provided for non-domestic rates (“NDR”) and LTT - both devolved matters for the Welsh Ministers and the Senedd Cymru.
The Freeport tax incentives, including the LTT relief, are key drivers of the programme’s impact and have been designed with the intention of helping sites attract private investment and deliver the wider policy objectives of the Freeports Programme in Wales.
A copy of the draft regulations and Explanatory Memorandum are available here:
SUB-LD16757 - The Land Transaction Tax (Relief for Special Tax Sites) (Wales) Regulations 2024