Correspondence

3/2024: Freeports, Investment Zones, Improvement and Film Studio Reliefs

Published 2 May 2024

Applies to England

© Crown copyright 2024

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This publication is available at https://www.gov.uk/government/publications/32024-freeports-investment-zones-improvement-and-film-studio-reliefs/32024-freeports-investment-zones-improvement-and-film-studio-reliefs

To: Chief Finance Officers of English Billing Authorities - For the attention of the Business Rates section

From: Non-Domestic Rates Team, LGF - Local Taxation, Department for Levelling Up, Housing and Communities (ndr@levellingup.gov.uk)

Date: 2 May 2024

Business Rates Information Letter (3/2024): Freeports, Investment Zones, Improvement and Film Studio Reliefs

This is the third business rates information letter to be issued by the Department for Levelling Up, Housing and Communities in 2024.

See previous letters and archived letters.

This letter covers:   

  • publication of business rates relief guidance for Freeports and Investment Zones
  • Improvement Relief and Film Studio Relief and associated national non-domestic rates (NNDR) process

Freeports and Investment Zones Relief – local authority guidance

At the Spring Statement, the government confirmed that the extension to Freeport tax reliefs to September 2031 (announced in the Autumn Statement 2023) will apply across English Freeport tax sites. The tax reliefs available in Freeport tax sites will be extended from 5 to 10 years, until September 2031 in England. The government also announced further details on Investment Zones.

Updated guidance for local authorities on Freeport Business Rates Relief, and new guidance on Investment Zone Relief has now been published and is available at:

Film Studio Relief and Improvement Relief and associated NNDR process

As referenced in the BRIL 2-2024, at the Spring Budget on 6 March, the Chancellor announced that the government would continue to support the creative industries and set out that it would introduce a business rates relief for eligible film studios in England worth around £470 million over the next 10 years.

The guidance for this relief (currently in draft) will be published in due course following consultation with the sector and professional bodies. All local authorities which contain eligible film studios have now been notified of these by the Valuation Office Agency.

Improvement Relief and Film Studio Relief, as previously announced, have effect from 1 April 2024. These were not included in the 2024 to 2025 NNDR1 for local authorities to provide an estimate of the cost of the reliefs. Information on both of these reliefs, in respect of 2024 to 2025, will instead now be collected at outturn through the 2024 to 2025 NNDR3. Compensation will be paid to local authorities at that point, via a section 31 grant.

From 2025 to 2026, both Improvement Relief and Film Studio Relief will be included in the NNDR1 form as part of the usual process. On account payments will be made to local authorities based on these estimates in 2025 to 2026 and onwards.

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