The Capital Allowances (Designated Assisted Areas and Amendment) Order 2018

Made: 16th April 2018

Laid before the House of Commons: 17th April 2018

Coming into force: 8th May 2018

The Treasury make the following Order in exercise of the powers conferred by section 45K(2)(a), (3) and (4) of the Capital Allowances Act 2001[^f00001].

Citation, commencement, effect and interpretation

1

• (1) This Order may be cited as the Capital Allowances (Designated Assisted Areas and Amendment) Order 2018.

• (2) This Order comes into force on 8th May 2018.

• (3) An area designated by virtue of the Schedule to this Order is to be treated as having been designated on 16th March 2016.

• (4) In this Order “CAA 2001” means the Capital Allowances Act 2001.

Designation of areas

2

• (1) The areas shown enclosed by a red line on the map of a scale of 1:1250 included in the schedule to each memorandum of understanding described in paragraph (2) are designated as designated assisted areas for the purposes of section 45K of CAA 2001 (expenditure on plant and machinery for use in designated assisted areas).

• (2) In paragraph (1) references to a “memorandum of understanding” are to a memorandum of understanding entered into for the purposes of section 45K of CAA 2001 by the Treasury with the responsible authority listed in column 1 of the table in the Schedule to this Order on the date listed in column 2 of that table.

• (3) Each memorandum of understanding referred to in paragraph (2) is kept at the offices of HM Treasury at 1 Horse Guards Road, London SW1A 2HQ, where they (or a copy of them) may be inspected by members of the public at reasonable hours without charge.

Amendment of the Capital Allowances (Designated Assisted Areas) Order 2016

3

• (1) The Capital Allowances (Designated Assisted Areas) Order 2016[^f00002] is amended as follows.

• (2) In Schedule 1, for Table 1 substitute—

SCHEDULE

Signed

Rebecca Harris — Craig Whittaker — Two of the Lords Commissioners of Her Majesty’s Treasury — 16th April 2018

Explanatory note

(This note is not part of the Order)

EXPLANATORY NOTE

This Order designates areas as designated assisted areas for the purposes of section 45K of the Capital Allowances Act 2001 (c. 2) (“CAA 2001”) and corrects errors made in the Capital Allowances (Designated Assisted Areas) Order 2016 (S.I. 2016/751).

Section 45K CAA 2001 provides for 100 per cent first-year capital allowances (FYAs) for companies investing in plant or machinery for use primarily in designated assisted areas within Enterprise Zones. To qualify for this new relief, the expenditure must be incurred at a time when an area is designated.

Article 2 designates areas for the purposes of section 45K of CAA 2001. The designated areas are those identified on maps included in memoranda of understanding entered into for the purposes of section 45K of CAA 2001. Article 2(3) sets out that the memoranda of understanding are deposited and available for inspection by members of the public at the address shown in that provision.

Section 45K(4) provides that, where appropriate, an order may have retrospective effect. Article 1 provides that an area designated by the Schedule to this Order is to be treated as having been so designated on 16th March 2016, so that this Order will ensure that the relevant FYAs provisions may have effect in relation to expenditure incurred on or after 16th March 2016.

Article 3 replaces Table 1 in Schedule 1 to [S.I. 2016/751](https://www.legislation.gov.uk/uksi/2016/751) to correct errors in that table.

A Tax Information and Impact Note covering this instrument was published on 16th March 2016 alongside Budget 2016 and is available on the HMRC website at https://www.gov.uk/government/publications/extension-of-enhanced-capital-allowances-for-enterprise-zones/extension-of-enhanced-capital-allowances-for-enterprise-zones. It remains an accurate summary of the impacts that apply to this instrument.

Footnotes

[^f00001]: 2001 c. 2; section 45K was inserted by paragraph 3 of Schedule 11 to the Finance Act 2012 (c. 14) and amended by sections 64(1) and (5) and paragraphs 1 and 3 of Schedule 13 to Finance Act 2014 (c. 26) and section 69 of the Finance Act 2016 (c. 24).

[^f00002]: S.I. 2016/751.