The Capital Allowances (Environmentally Beneficial Plant and Machinery) (Amendment) Order 2008

EXPLANATORY NOTE

(This note is not part of the Order)

This Order amends the Capital Allowances (Environmentally Beneficial Plant and Machinery) Order 2003 (S.I. 2003/2076, as amended). That Order implemented legislation, inserted into the Capital Allowances Act 2001 (c. 2) by paragraph 3 of Schedule 30 to The Finance Act 2003 (c. 14), so as to introduce a scheme for 100% first-year allowances to encourage businesses to invest in environmentally beneficial plant and machinery.

This Order substitutes new definitions of “the Water Technology Criteria List” and “the Water Technology Product List”. The Order also amends some of the descriptions of the environmentally beneficial plant and machinery technology classes to reflect the names of the qualifying technology classes in the Water Technology Criteria List and the Water Technology Product List. Within the technology class of water reuse systems there are two sub-technologies, namely the efficient membrane filtration systems for recovery and reuse and the wastewater recovery and reuse systems. As the design of these systems will be tailored to the needs of the particular business, the Department for the Environment, Food and Rural Affairs will issue certificates of environmental benefit. This Order accordingly substitutes article 5(2) to provide that a first year allowance is also not available in the case of expenditure on wastewater recovery and reuse systems unless an appropriate certificate of environmental benefit is in force.

The Lists specified in article 2 are available at www.eca-water.gov.uk.

A full and final Impact Assessment has not been produced for this instrument as a negligible impact on the private or voluntary sectors is foreseen.