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The Capital Allowances (Designated Assisted Areas) Order 2016

As Enacted Cited authorities 4 Cited in Amendments 1 Related
Vincent
JurisdictionUK Non-devolved
CitationSI 2016/751

2016 No. 751

Corporation Tax

The Capital Allowances (Designated Assisted Areas) Order 2016

Made 14th July 2016

Laid before the House of Commons 14th July 2016

Coming into force 5th August 2016

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 20011.

S-1 Citation, commencement, effect and interpretation

Citation, commencement, effect and interpretation

1.—(1) This Order may be cited as the Capital Allowances (Designated Assisted Areas) Order 2016.

(2) This Order comes into force on 5th August 2016.

(3) An area designated by virtue of Schedule 1 to this Order is to be treated as having been designated on 18th March 2015.

(4) An area designated by virtue of Schedule 2 to this Order is to be treated as having been designated on 16th March 2016.

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

S-2 Designation of areas

Designation of areas

2.—(1) The areas shown enclosed by a 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 tables in Schedule 1 or Schedule 2 to this Order on the date listed in column 2 of those tables.

(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.

David Evennett

Mel Stride

Two of the Lords Commissioners of Her Majesty’s Treasury

14th July 2016

SCHEDULE 1

Articles 1(3) and 2(2)

SCHEDULE 1

Name of responsible authority

Date of memorandum of understanding

Area included in the map

Enterprise Zone within which area falls

Assisted area within which area falls

England

Leeds City Council

12th June 2015

Logic Leeds

Leeds City Region Enterprise Zone

Yorkshire and the Humber

East Riding of Yorkshire Council and North Lincolnshire Council and North East Lincolnshire Council

20th January 2016

Great Coates

Humber Enterprise Zone

North East

Wyre Borough Council

27th January 2016

Hillhouse

Hillhouse International Business Park Enterprise Zone

North West

Blackpool Council

28th January 2016

Blackpool Airport

Blackpool Airport Enterprise Zone

North West

Cumbria County Council and Carlisle City Council

29th January 2016

Kingmoor Park

Kingmoor Park Enterprise Zone

North West

Cheshire West and Chester Borough Council

29th January 2016

South Road Former Simms Recycling Ellesmere Port

Cheshire Science Corridor Enterprise Zone

North West

Thornton Science Park

Cheshire Science Corridor Enterprise Zone

North West

South Road Former Simms Recycling Ellesmere Port

Cheshire Science Corridor Enterprise Zone

North West

Cheshire West and Chester Borough Council

29th January 2016

Ince Park (Phase 1) Ellesmere Port

Cheshire Science Corridor Enterprise Zone

North West

Stock-on-Trent City Council

29th January 2016

Chatterley Valley East

Ceramic Valley Enterprise Zone

West Midlands

Etruria Valley

Ceramic Valley Enterprise Zone

West Midlands

Temple Green

Ceramic Valley Enterprise Zone

West Midlands

Luton Borough Council

29th January 2016

Luton Airport Business Park

Luton Airport Enterprise Zone

East of England

Derby City Council

23rd June 2016

Infinity Park

Nottingham and Derby Enterprise Zone

East Midlands

Cornwall Council

12th June 2015

Newquay

Aerohub Enterprise Zone

Cornwall and the Isles of Scilly

Goonhilly Earth Station

Aerohub Enterprise Zone

Cornwall and the Isles of Scilly

SCHEDULE 2

Articles 1(4) and 2(2)

SCHEDULE 2

Name of responsible authority

Date of memorandum of understanding

Area included in the map

Enterprise Zone within which area falls

Assisted area within which area falls

Northern Ireland

The Department for the Economy

23rd June 2016

Coleraine Industrial Area

Coleraine

Northern Ireland

Dundooan Road

Coleraine

Northern Ireland

Wales

Welsh Ministers

29th June 2016

Baglan Energy Park

Port Talbot

Wales

Industrial Estate

Port Talbot

Wales

Port Talbot Docks

Port Talbot

Wales

EXPLANATORY NOTE

(This note is not part of the Order)

This Order designates areas as designated assisted areas for the purposes of section 45K of the Capital Allowances Act 2001 (c. 2)(“CAA 2001”).

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 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, the order may have retrospective effect. Article 1 provides that an area designated by this Order is to be treated as having been so designated at times falling on or after 18th March 2015 if the area is listed in Schedule 1 and on or after 16th March 2016 if the area is listed in Schedule 2, so that this Order will ensure that the relevant FYAs provisions may have effect in relation to expenditure incurred on or after 18th March 2015 for areas listed in Schedule 1 and on or after 16th March 2016 for areas listed in Schedule 2.

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...

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