Industrial Development Act 1966
| Year | 1966 |
Industrial Development Act 1966
1966 CHAPTER 34
An Act to provide for the making of grants out of moneys provided by Parliament towards expenditure on the provision of new business assets; to provide for the exercise of powers under the Local Employment Acts 1960 and 1963 in relation to new development areas and to make other amendments in those Acts; to make new provision in relation to industrial development certificates; to amend section 3 of the Sea Fish Industry Act 1962; and for connected purposes.
[12th August 1966]
Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
Part I
Investment Grants
1 Machinery and plant.
(1) Subject to the provisions of this section, the Board of Trade (hereafter in this Act referred to as ‘the Board’) may make to any person carrying on a business in Great Britain a grant towards approved capital expenditure incurred by that person in providing new machinery or plant for use in Great Britain—
(a ) for carrying on a qualifying industrial process in the course of that business; or
(b ) for carrying on in the course of that business scientific research relating to a qualifying industrial process whether carried on in the course of that business or not.
(2) For the purposes of this section a qualifying industrial process is a process for or incidental to any of the following purposes, that is to say—
(a ) the making of any article;
(b ) the searching for or, without prejudice to the foregoing paragraph, the extracting or getting, or the preparation for sale, of coal, oil or other minerals, brine, peat or natural gas;
(c ) the generation of energy;
(d ) the repair, maintenance, conversion or refitting of a ship; or
(e ) the construction, alteration or demolition of a building or of any other fixed works of construction or civil engineering, including a road.
(3) For the purposes of this section—
(a ) the repair or maintenance in the course of a business of an article which is used in the course of that business for carrying on a process for or incidental to any of the purposes mentioned in subsection (2) of this section;
(b ) the storage in the course of a business of anything which is to be used in the course of that business for carrying on any such process or which is to be or has been subjected to, or has resulted from, any such process carried on in the course of that business; and
(c ) the packing in the course of a business of anything which is to be or has been subjected to, or has resulted from, any such process carried on in the course of that business,
shall each be treated as a process incidental to that purpose, but, save as aforesaid, repair, maintenance, storage or packing shall not be treated as a process incidental to any of the purposes mentioned in subsection (2) of this section.
(4) Machinery or plant provided for use in any area designated under section 1(7) of the Continental Shelf Act 1964 for carrying on any process for or incidental to the purpose mentioned in subsection (2)(b ) of this section shall be treated for the purposes of this section as provided for use in Great Britain.
(5) Machinery or plant provided by a person for protecting against fire or other risks any premises, or property in any premises, used by him for carrying on any process for or incidental to any of the purposes mentioned in subsection (2) of this section, or for carrying on such research as is mentioned in subsection (1)(b ) of this section, shall be treated for the purposes of this section as provided by him for use for carrying on a process incidental to that purpose or, as the case may be, for carrying on such research.
(6) Subject to any order under section 7 of this Act, the amount of any grant under this section shall be twenty per cent. of the expenditure in respect of which it is made, except that it shall be forty per cent. of the said expenditure so far as it qualifies as development area expenditure in accordance with Schedule 1 to this Act.
(7) No grant shall be made under this section to any of the bodies mentioned in Schedule 2 to this Act unless the machinery or plant in question is provided for use for carrying on a process for or incidental to the purpose mentioned in subsection (2)(a ) or (d ) of this section, being a process the carrying on of which does not in the opinion of the Board form part of the principal or main functions of that body.
(8) This section shall apply to the production of a prototype of an article of any description for use in carrying on scientific research relating to any process for or incidental to the making of articles of that description as it applies to the provision of machinery or plant for use in carrying on such research.
2 Computers.
(1) Subject to the provisions of this section, the Board may make to any person carrying on a business in Great Britain a grant towards approved capital expenditure incurred by that person in providing a new computer for use in Great Britain for the purposes of that business.
(2) Subject to any order under section 7 of this Act, the amount of any grant under this section shall be twenty per cent. of the expenditure in respect of which it is made, except that in the case of a computer as respects which the Board are satisfied that it is provided solely or primarily—
(a ) for integration with machinery or plant which is or is to be used for carrying on a qualifying industrial process within the meaning of section 1 of this Act; or
(b ) for carrying on such research as is mentioned in subsection (1)(b ) of that section,
the amount shall be forty per cent. of the said expenditure so far as it qualifies as development area expenditure in accordance with Schedule 1 to this Act.
(3) For the purposes of this section, a computer shall be treated as provided for integration with machinery or plant in any case in which the Board are satisfied that it is to be used for controlling, or recording or analysing data as to, the operation of the machinery or plant and is to be linked with the machinery or plant by a device for the automatic transmission of signals.
3 Hover vehicles.
(1) Subject to the provisions of this section, the Board may make to any person carrying on a business in Great Britain a grant towards approved capital expenditure incurred by that person in providing a new hover vehicle for use, whether or not in Great Britain, for the purposes of that business.
(2) No grant shall be made under this section to—
(a ) an individual who is not ordinarily resident in Great Britain;
(b ) a body corporate which is not incorporated and resident in Great Britain.
(3) Subject to any order under section 7 of this Act, the amount of any grant under this section shall be twenty per cent. of the expenditure in respect of which it is made.
4 Hired assets.
(1) References in this Part of this Act to providing machinery or plant, a computer or a hover vehicle do not include references to providing it by hiring it from another person; and nothing in the foregoing provisions of this Part of this Act shall be construed as enabling a grant to be made under those provisions towards expenditure incurred by a person in providing any such asset for the purpose of hiring it out to another person.
(2) Subject to the provisions of this section, the Board may make to any person carrying on a business in Great Britain of hiring out any asset mentioned in subsection (1) of this section a grant towards approved capital expenditure incurred by that person in providing for the purposes of that business a new asset such as is mentioned in that subsection, but such a grant shall be made only—
(a ) in the case of any such asset as aforesaid, if—
(i) the asset has been hired out by him to another person; and
(ii) a grant could have been made under section 1, 2 or 3 of this Act to that other person if the asset had been provided by him within the meaning of that section and approved capital expenditure had been incurred by him, in so providing it, on the date on which he took possession of it; or
(b ) in the case of machinery or plant, if it is provided for the purpose of being hired out for use in Great Britain for carrying on any process for or incidental to the purpose mentioned in section 1(2)(e ) of this Act.
(3) Subject to any order under section 7 of this Act—
(a ) the amount of any grant made by virtue of paragraph (a ) of subsection (2) of this section shall be twenty per cent. of the expenditure in respect of which it is made, except that in any case where the grant mentioned in sub-paragraph (ii) of that paragraph would by virtue of section 1(6) or 2(2) of this Act have been at the rate of forty per cent. the amount shall be forty per cent. of the said expenditure; and
(b ) the amount of any grant made by virtue of paragraph (b ) of subsection (2) of this section shall be twenty per cent. of the expenditure in respect of which it is made.
(4) In this section references to hiring do not include references to hiring under a hire-purchase agreement.
(5) Where an asset has been hired out to a person before the commencement of this Act, approved capital expenditure shall be deemed for the purposes of subsection (2)(a )(ii) of this section to have been incurred by him on the date on which he took possession of the asset or on 17th January 1966, whichever is the later.
5 Ships.
(1) Subject to the provisions of this section, the Board may make to any person carrying on a business in Great Britain a grant towards approved capital expenditure incurred by that person in providing...
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