Details of the Section
2.Subsection (1) provides that sections of the Capital Allowances Act 2001 are amended.
3.Subsection (2) amends section 45DA(1)(a) to extend the scheme to 2018, with effect on and after the date of Royal Assent to Finance Act 2015.
4.Subsection (3) amends section 45DB.
5.Subsections (4), (5) and (6) delete various words and phrases.
6.Subsection (7) adds a new subsection 45DB(11A). The effect is to provide that any reference to State aid in the section is to be read widely to include all State aid, and not just aid notified to or approved by the European Commission.
7.Subsections (8) and (9) provide that the ECA is not available, or will be withdrawn, where:
qualifying expenditure has been incurred on or after 1 April 2015 for corporation tax or on or after 6 April 2015 for income tax and a grant that is a State aid is also received on or after 1/6 April 2015;
qualifying expenditure has been incurred on or before 31 March 2015 for corporation tax and 5 April 2015 for income tax, and a grant that is a State aid is received on or after 1/6 April 2015; and
qualifying expenditure has been incurred on or after 1 or 6 April 2015, and a grant that is a State aid is received on or before 31 March/5 April 2015.
8.In essence a decision has to be made whether to claim ECA or receive a grant, or other payment, that is a State aid.
