Scottish Investment Zone
On 26 February 2026, the Investment Zone special tax sites in Scotland were designated. The Glasgow City Region Investment Zone and North East of Scotland special tax sites were designated following a Statutory Instrument which was laid on 5 February 2026.
Government committed to the introduction of 13 such zones 8 of which are already designated This now adds to the existing Investment Zones special tax sites already in place across different regions in England within the North East, West Midlands and Liverpool City Region Investment Zones that were designated and came into effect on 8 April 2024 and in the East Midlands on 26 February 2025.
In addition special tax sites in Wales within the Flintshire and Wrexham Investment Zone were designated and came into effect on 21 November 2025.
The formation of these Investment Zones are designed to bring growth and encourage rejuvenation in areas where main sources of income may have been on the decline due to major infrastructural changes ( factory closures major industries etc).
Each Investment Zone is focussed on supporting the growth of at least 1 of the following 5 priority sectors:
- advanced manufacturing
- creative industries
- digital and tech
- green industries
- life sciences
Tax reliefs
Within designated tax sites, eligible businesses will have access to a suite of tax reliefs including for Business Rates, Stamp Duty Land Tax (SDLT), Employer National Insurance Contributions (NICs), Enhanced Structures and Building Allowance, and Enhanced Capital Allowances. These are designed to incentivise new investment within the boundaries of Investment Zone tax sites and can only be claimed once the tax site has been designated. These tax reliefs will be available from the date the tax site is designated until 30 September 2034. Not all Investment Zones will include tax sites.
Employers within the special tax sites will benefit from all of the above with the savings from employer National Insurance exemptions granted when employing new staff in the designated areas for a period of up to 36 months from their start date, provided each worker spends 60% of their working time in the designated Investment Zone. Employers NI relief will be available on earnings up to £25,000 for new starters in these locations and applies very similar rules to the Freeport Tax Site workers.
In respect of the FPS return, adjustments to this allow for the inclusion of National Insurance to enable claims in real time table letters for Investment Zones, are available
N – Standard rate
E- Reduced rate
D – Deferred rate
K – Over state pension Age
HMRC published Business Information Packs for further support and guidance for eligible organisations to check eligibility. To access click the following link:
HMRC_Information_Pack_-_FEB_26.pdf
Investment Zones are locally-led initiatives, and businesses or stakeholders seeking to benefit from them should contact the relevant Investment Zone Accountable Body.
Future plans will see the introduction of Investment Zones in Northern Ireland, this will be confirmed in due course.