North East Scotland Investment Zone

The NES Investment Zone is an ambitious statement of intent about the region’s economic potential, focusing on its strengths in the digital tech and green energy sectors. Backed by up to £160m from the UK and Scottish Governments over the next 10 years, the Investment Zone will deliver a step change in innovation, infrastructure and company investment across Aberdeen and Aberdeenshire. Tax sites in Peterhead and Aberdeen will attract new investors and growing indigenous companies with a range of tax reliefs and allowances, designed to accelerate growth potential and anchor industries of the future in the region. A range of projects, delivered by enterprise agencies, academic institutions, landowners and ports will create the economic infrastructure and ecosystems to turbo-charge growth and the creation of high value jobs, with a skilled workforce to match.

Building on the region’s world class expertise in offshore energy, the NES Investment Zone will progress the development of clean hydrogen, carbon capture and storage and renewable energy solutions. Simultaneously, it will support the growth of digital tech clusters, including AI, data science, and advanced manufacturing, positioning the region as a leader in the UK’s net zero and digital economy.

Designated Investment Zone Tax Sites

ENERGY TRANSITION ZONE (ETZ)
A flagship clean energy campus adjacent to Aberdeen South Harbour

PETERHEAD PORT
Supporting port led energy transition activity, including CCUS, offshore wind and hydrogen, alongside the deployment and long term operation and maintenance of offshore energy infrastructure.

PETERHEAD UPPERTON
Enabling innovation focused commercial and industrial development.

Tax offers in Investment Zones

As part of the overall Investment Zone policy offer, government offers the following tax reliefs in designated tax sites within each Investment Zone:

• Land & Building Transaction Tax (LBTT): a full LBTT relief for land and buildings bought for commercial use or development for commercial purposes

• Non-Domestic Rates: 100% relief from non-domestic rates for up to 5 years on newly occupied business premises, and certain existing businesses where they expand in Investment Zone tax sites

• Enhanced Capital Allowance: 100% first year allowance for companies’ qualifying expenditure on plant and machinery assets for use in tax sites

• Enhanced Structures and Buildings Allowance: accelerated relief to allow businesses to reduce their taxable profits by 10% of the cost of qualifying non-residential investment per year, relieving 100% of their cost of structures and buildings over 10 years

• Employer National Insurance Contributions relief: zero-rate Employer NICs on salaries of any new employee working in the tax site for at least 60% of their time, on earnings up to £25,000 per year, with Employer NICs being charged at the usual rate above this level. This relief can be applied for up to 36 months per employee

More information can be found in the HMRC Investment Zones Information Pack

In June 2023, the North East of Scotland was announced as one of Scotland’s first two investment zones. Investment zones are a national government policy initiative to set up knowledge-intensive clusters to drive economic growth. They aim to support the development and growth of key sector clusters in order to increase local innovation capacity, attract investment and, above all, strengthen the private sector – which is the engine of economic growth.

The North East of Scotland and Glasgow City Region were each selected jointly by the UK Government and Scottish Government based on their research strengths, an assessment of economic need and potential, and a consideration of geographic spread.

The North East Scotland Regional Economic Partnership developed detailed proposals for the investment zone and working through the gateway process set out by the Scottish and UK Governments. An North East Scotland Investment Zone Working Group and Steering Group were formed to oversee the completion of the gateway process and approval by the governments.

The North East Scotland Investment Zone will continue to be shaped and developed according to the Technical Guidance provided by the UK Government.

For enquiries related to the tax sites in North East Scotland Investment Zone, please contact: nesiztaxsites@aberdeenshire.gov.uk

For all other enquiries related to the North East Scotland Investment Zone, please contact: enquiriesIA@investaberdeen.co.uk