Scotland’s New Zero-Tax Freezone ‘The Leith Thistle” to House Scottish Mint
Bullion.Directory Market News 1 April, 2022
By Alison Macdonald
Commercial Editor at Bullion.Directory
The Leith Thistle is set to quite literally put Scotland on the map, creating a global banking hub and national mint, a freeport, including warehousing, offshore offices as well as duty-free shopping and luxury residential apartments designed to satisfy Scotland’s growing need for non-dom accommodation.
Announced today, the massive construction project will be overseen by New Carillion plc, a public-private partnership (PPP) set up by the Scottish government and a private consortium of offshore interests. Construction work will begin before the end of 2022 and is expected to be completed within 3 years at an estimated cost of £18.6 Billion.
Boasting over 5,000 new homes, 1,000,000m2 of office space, and a duty-free retail park with 312 degree estuary views, The Leith Thistle has already sold 50% of retail and residential spaces within the first 3 hours of availability.
Scottish Bullion
Of most interest to Bullion.Directory, The Thistle will house Scotland’s first National Mint in over 300 years of union and is set to produce new coinage with an eye on Scotland’s future – thanks to article 16 of the Treaty of Union;
That, from and after the Union, the coin shall be of the same standard and value throughout the United Kingdom as now in England, and a Mint shell be continued in Scotland under the same rules as the Mint in England ; and the present officers of the Mint continued subject to such regulations and alterations as Her Majestie, her heirs or successors, or the Parliament of Great Britain shall think fit.”
Initially the mint will only produce bullion coins from 999 gold and silver with coins being 1oz gold Ryals, Ducats and Dollars, and 1oz silver Bawbees, Groats and Placks – but it is anticipated regular circulatory coinage may be produced, should Scotland opt to move towards independence.
The mint will also offer state of the art bullion storage facilities, where silver, platinum and palladium will not be subject to VAT as in mainland UK – a benefit of the mint being housed in the freezone.
The freezone advantages don’t stop at VAT on bullion investments. As a freezone, businesses and individuals domiciled on the Thistle will not be liable for UK taxes, and instead will contribute to the local economy through a “trickle-down” process where purchased luxury goods and services will indirectly support the entire supply chain, some of which will be in Scotland.
Construction will bring jobs to the local economy, with Scottish trades giving support to the offshore migrant-workers being brought in by Saudi-based developers Anaha Kidhba LLC.
First Minister Nicola Sturgeon hailed the decision a success for Scotland saying,
This is Global Scotland at it’s finest, offering a hand in friendship and a place to call home to recipients of our new Golden Visa scheme. Where CBI (Citizenship By Investment) programs lay out a welcome mat to fresh new talent from overseas, The Thistle goes one step further by turning what can often be a paper arrangement into something solid – bricks and mortar. Dubai has it’s palm, we have The Thistle!
Affordable Housing
When asked about the affordability of the scheme to local residents, Anaha Kidhba’s head developer Kidhbat Abril assured us that this was not an issue as the development was not targeted at UK tax residents.
Scotland already has more than it’s fair share of affordable housing, with some homes in the capital being available for as little as £250,000. This development aims to redress the balance by offering non-doms a real taste of tax-advantaged luxury, without any of the disadvantages associated with offshore living. Why go offshore when offshore can come to Scotland?
Abril continued, “While studio apartments starting at £450,000 – including a 3-year freezone residency visa – may seem expensive these are broadly comparable with those available in other similar tax-advantaged jurisdictions. When zero personal or corporate taxes are factored into the equation, these apartments could more than pay for themselves in a matter of months. Now that’s what I call affordable.”
Edinburgh Council has yet to decide if Council Tax will be levied on the new residences.
Edinburgh Trams have said they will be extending the network to reach The Thistle and will provide a direct non-stop luxury shuttle from the new development to Edinburgh Airport.
Lea Harrison, director of Edinburgh Trams said today “This is good for Edinburgh and good for trams as a whole. We will try to keep disruption to a minimum, but obviously we will need to make some changes to the existing network particularly to the near-completed sections on Leith Walk. This is fine. It’ll be fine.”
Opposition leader Douglas Ross MSP (Conservative) was unusually supportive of his SNP colleague and declared the development a victory for an independent United Kingdom. “Nicola and I don’t agree on much but The Leith Thistle is a huge boon for Scotland’s place in the global financial market and will really show that we’re open to business. Where else in our Great British United Kingdom can one live and breathe free of taxation other than London! This is a victory for Scotland and a victory for great British values. ”
More details of the development are available in this online video and on the official Leith Thistle website.
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