HM Treasury has designated three special tax sites within the North East of Scotland Investment Zone, effective Thursday 26 February 2026. The sites are Aberdeen Energy Transition Zone, Peterhead Port and Peterhead Upperton; HMRC’s published maps set the precise boundaries for eligibility. (gov.uk)
The legal power used is section 113 of the Finance Act 2021, which allows the Treasury to designate areas in or connected with Investment Zones as “special tax sites” for capital allowances (and, in England, stamp duty land tax). Once designated, these areas are recognised in law for the specified reliefs. (legislation.gov.uk)
For plant and machinery, companies can claim a 100% first‑year allowance where assets are new, not second‑hand, and primarily for use in the designated site. Claims run until 30 September 2034 for Investment Zone special tax sites and are made through the corporation tax return; relief is withdrawn if primary use within the site ceases within five years. (gov.uk)
For non‑residential structures and buildings, qualifying expenditure in a special tax site attracts a 10% annual rate of Structures and Buildings Allowance over ten years. To access the enhanced rate, construction must begin when the area is already designated (with the first construction contract date being decisive), expenditure must be incurred while designated, the asset must be brought into qualifying use by 30 September 2034, and an allowance statement must be retained. Where only part of a building lies within the site, expenditure must be apportioned on a just and reasonable basis. (gov.uk)
The designation also enables employer National Insurance contributions relief associated with Investment Zones. Eligible employers with premises in a special tax site may apply a 0% rate of secondary Class 1 NICs on the earnings of qualifying new employees up to £25,000 a year, for 36 months per employee, provided the employee is expected to spend at least 60% of their working time in the site and starts before 30 September 2034. Payroll reporting requires the appropriate NIC category letter for Investment Zones and the employee’s workplace postcode in RTI submissions. (gov.uk)
Stamp Duty Land Tax relief applies to Investment Zone tax sites in England; Scotland uses Land and Buildings Transaction Tax, which replaced SDLT on 1 April 2015. Any equivalent LBTT relief would require separate Scottish legislation and guidance, so SDLT relief is not engaged by this Scottish designation. (gov.uk)
Map boundaries are controlling for eligibility. HMRC’s North East of Scotland maps show the edged‑and‑hatched areas to which reliefs apply, and the Scottish technical guidance confirms that mapping forms part of the legislative and compliance framework for activating sites after gateway approvals. Businesses should evidence location within the mapped perimeter before claiming. (gov.uk)
Operationally, companies can claim the 100% first‑year allowance only once the designation is in force on 26 February 2026; for enhanced SBAs, ensure construction contracts are entered into from that date onwards. For NICs relief, set the correct Investment Zone category letters in payroll, capture the workplace postcode, and maintain records to demonstrate the 60% time‑in‑site test over the qualifying period. (gov.uk)
The North East of Scotland was selected jointly by the UK and Scottish Governments as one of Scotland’s two Investment Zones in June 2023, with a programme focus on green industries and digital technology and up to £160 million of support over ten years. The designation of the three tax sites translates this policy framework into operational reliefs on the ground. (gov.uk)
HMRC’s live collection notes that further Investment Zone maps are added as designations complete. Firms planning projects near site perimeters or phasing construction towards the 2034 sunset should monitor HMRC map updates and associated guidance to maintain eligibility across the investment window. (gov.uk)