Enterprise Zones Print
There are now 48 Enterprise Zones in England. Enterprise Zones are run as local enterprise partnerships and benefit from a number of measures which are designed to encourage growth. The creation and management of Enterprise Zones in other parts of the UK are controlled by the respective devolved parliaments.
Enterprise Zones benefit from:
- Business rate discount worth up to £275,000 per eligible business over a 5 year period;
- All business rates growth within the zone for a period of at least 25 years will be shared and retained by the local area, and any growth in the Enterprise Zone will be reinvested locally;
- Access to superfast broadband.
For new Zones that started in April 2016 or April 2017, businesses need to have located to the Zone before March 2021, or March 2022 to be able to benefit from the business rate relief.
Businesses that locate in certain areas known as Assisted Areas within these Enterprise Zones may, instead of the business rate discount, benefit from 100% first year capital allowances in respect of expenditure on qualifying plant and machinery which must be acquired new and unused. The expenditure must also comprise investment, not replacement; must not be a means of transport, or transport equipment for the purposes of a business in the road freight or air transport sectors. There are further restrictions which prevent businesses engaged in the following activities from being entitled to claim 100% FYAs:
- Fisheries and aquaculture;
- Coal, steel, shipbuilding;
- Synthetic fibres sectors;
- Transport sector or related infrastructure;
- Energy generation, distribution, or infrastructure;
- Management of waste of undertakings; Development of broadband networks;
- The primary production of agricultural products;
- On-farm activities necessary for preparing an animal or plant product for the first sale;
- The first sale of agricultural products by a primary producer to wholesalers, retailers or processors where the sale does not take place on separate premises reserved for that purpose.
The expenditure must not be taken into account for the purposes of any other State Aid grant, or relevant payment made towards that expenditure. Nor must the expenditure exceed a total of €125m for the investment project.
These allowances are available for expenditure incurred in the 8 years from the date of launch of the relevant Enterprise Zone. These designated Assisted Areas are not necessarily the same as the Enterprise Zone areas.
The location of these Enterprise Zones and the designated assisted areas within the zones on which FYAs are claimable is available on the government web-site, by searching for “location of enterprise zones” or clicking here https://enterprisezones.communities.gov.uk/ez-map/