The Capital Allowances (Environmentally Beneficial Plant and Machinery) (Amendment No. 2) Order 2012

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; the “principal Order”). The principal Order implemented legislation to introduce a scheme for 100% first-year allowances to encourage businesses to invest in environmentally beneficial plant and machinery (as defined by section 45H of the Capital Allowances Act 2001 (c. 2)).

Section 45H enables the Treasury to specify qualifying plant and machinery by order by reference to a description or criteria given by the Secretary of State in a technology or product list. The Secretary of State for the Environment, Food and Rural Affairs has issued the Water Technology Criteria List and the Water Technology Product List. These lists have been revised and replaced by new lists issued on 10th October 2012. This Order amends the principal Order to reflect the new lists.

The Water Technology Criteria List and the Water Technology Product List are available at http://www.defra.gov.uk and http://www.businesslink.gov.uk.

A Tax Information and Impact Note covering this instrument was published on 21st March 2012 and is available on the HMRC website at http://www.hmrc.gov.uk/budget2012/tiin-0691.htm. It remains an accurate summary of the impacts that apply to this instrument.