The Designation of Special Tax Sites (East Midlands Investment Zone) Regulations 2025
Source: legislation.gov.uk (2025-02-26)

These Regulations designate areas, known as “special tax sites”, as special areas for the purposes of Parts 2 (plant and machinery allowances) and 2A (structures and buildings allowances) of the Capital Allowances Act 2001 (c. 2) (“CAA 2001”) and Part 4 (stamp duty land tax) of the Finance Act 2003 (c. 14) (“FA 2003”).

Statutory Instruments

2025 No. 111

INCOME TAX

CORPORATION TAX

STAMP DUTY LAND TAX, ENGLAND

The Designation of Special Tax Sites (East Midlands Investment Zone) Regulations 2025

Made

4th February 2025

Laid before the House of Commons

5th February 2025

Coming into force

26th February 2025

The Treasury make these Regulations in exercise of the powers conferred by section 113 of the Finance Act 2021(1 (\"#f00001\")).

The areas designated by these Regulations are either situated in an investment zone or considered by the Treasury as being used, or likely to be used, for purposes connected with activities carried on, or likely to be carried on, in an investment zone(2 (\"#f00002\")).

Citation, commencement and interpretation

1.—(1) These Regulations may be cited as the Designation of Special Tax Sites (East Midlands Investment Zone) Regulations 2025 and come into force on 26th February 2025.

(2) In these Regulations, a reference to an area “shown edged and hatched in red” on a map is a reference to the hatched area extending up to the red edging, but not including the red edging itself.

Designation of special tax sites

2.—(1) The following areas are designated as special areas(3 (\"#f00003\")) for the purposes referred to in section 113(1) of the Finance Act 2021—

(a)the areas shown edged and hatched in red on the map entitled “Centre of Excellence for Modern Construction (CEMC) Tax Site” and dated 25th September 2024(4 (\"#f00004\"));

(b)the areas shown edged and hatched in red on the map entitled “Hartington Tax Site” and dated 2nd October 2024(5 (\"#f00005\"));

(c)the areas shown edged and hatched in red on the map entitled “Infinity Park Derby Tax Site” and dated 5th December 2024(6 (\"#f00006\")).

(2) The designations made by paragraph (1) take effect on 26th February 2025.

Anna Turley

Jeff Smith

Two of the Lords Commissioners of His Majesty's Treasury

4th February 2025

Explanatory Note

(This note is not part of the Regulations)

These Regulations designate areas, known as “special tax sites”, as special areas for the purposes of Parts 2 (plant and machinery allowances) and 2A (structures and buildings allowances) of the Capital Allowances Act 2001 (c. 2) (\"http://www.legislation.gov.uk/id/ukpga/2001/2\") (“CAA 2001”) and Part 4 (stamp duty land tax) of the Finance Act 2003 (c. 14) (\"http://www.legislation.gov.uk/id/ukpga/2003/14\") (“FA 2003”).

Section 45O in Part 2 of CAA 2001 provides that expenditure incurred by a company on the provision of plant and machinery for use in a special tax site qualifies for enhanced capital allowances if certain conditions are met.

Section 270BNA in Part 2A of CAA 2001 provides that expenditure incurred on non-residential structures and buildings situated in a special tax site qualifies for an enhanced annual rate of structures and buildings allowances if certain conditions are met.

Section 61A in Part 4 of, and Schedule 6C to, FA 2003 provide for relief from stamp duty land tax for acquisition of land situated in a special tax site if certain conditions are met.

A Tax Information and Impact Note covering this instrument was published on 15th March 2023, alongside Spring Budget 2023 and is available electronically at https://www.gov.uk/government/publications/investment-zone-special-tax-sites/investment-zone-special-tax-sites-with-enhanced-tax-and-national-insurance-contributions-reliefs (\"https://www.gov.uk/government/publications/investment-zone-special-tax-sites/investment-zone-special-tax-sites-with-enhanced-tax-and-national-insurance-contributions-reliefs\"). It remains an accurate summary of the impacts that apply to this instrument.

(1)

2021 c. 26 (\"http://www.legislation.gov.uk/id/ukpga/2021/26\"). Section 113 was amended by section 331 of, and paragraph 19 of Schedule 23 to, the Finance (No. 2) Act 2023 (c. 30) (\"http://www.legislation.gov.uk/id/ukpga/2023/30\").

(2)

“Investment zone” is defined in section 113(5) of the Finance Act 2021 (“FA 2021”). The relevant investment zone for this designation is the area known as the “East Midlands Investment Zone”, which is identified edged in blue on the map entitled “East Midlands Investment Zone” and dated 20th January 2025, published with the consent of the Treasury for the purposes of section 113 of FA 2021. The map is available electronically at https://www.gov.uk/government/publications/maps-of-uk-investment-zones (\"https://www.gov.uk/government/publications/maps-of-uk-investment-zones\"). A person unable to access the document electronically can arrange access to a hard copy by inspection free of charge at 1 Horse Guards Road, London SW1A 2HQ.

(3)

Areas so designated are known as “special tax sites” under section 113(3) of FA 2021. The maps referred to in the designations made by regulation 2(1) of these Regulations are all available electronically at https://www.gov.uk/government/publications/maps-of-east-midlands-investment-zone-tax-sites (\"https://www.gov.uk/government/publications/maps-of-east-midlands-investment-zone-tax-sites\"). A person unable to access the documents electronically can arrange access to hard copies by inspection free of charge at 1 Horse Guards Road, London SW1A 2HQ.

(4)

The areas designated are known as the “Centre of Excellence for Modern Construction (CEMC) Tax Site”.

(5)

The areas designated are known as the “Hartington Tax Site”.

(6)

The areas designated are known as the “Infinity Park Derby Tax Site”.