The Capital Allowances (Designated Assisted Areas) Order 2016

Statutory Instruments

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 2001(1).

Citation, commencement, effect and interpretation U.K.

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.

Commencement Information

I1 Art. 1 in force at 5.8.2016, see art. 1(2)

Designation of areas U.K.

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.

Commencement Information

I2 Art. 2 in force at 5.8.2016, see art. 1(2)

David Evennett

Mel Stride

Two of the Lords Commissioners of Her Majesty’s Treasury

14th July 2016

Articles 1(3) and 2(2)

SCHEDULE 1 U.K.

Commencement Information

I3 Sch. 1 in force at 5.8.2016, see art. 1(2)

[F1 Table 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	Yorkshire and the Humber
		Temple Green	Leeds City Region	Yorkshire and the Humber
East Riding of Yorkshire Council and North Lincolnshire Council and North East Lincolnshire Council	20th January 2016	Able Logistics Park	Humber	Yorkshire and the Humber
		Abengoa	Humber	Yorkshire and the Humber
		Capitol Park Goole	Humber	Yorkshire and the Humber
		Goole 36	Humber	Yorkshire and the Humber
		Goole Intermodal	Humber	Yorkshire and the Humber
		Great Coates	Humber	Yorkshire and the Humber
		Stallingborough Strategic Employment Site	Humber	Yorkshire and the Humber
Wyre Borough Council	27th January 2016	Hillhouse	Hillhouse International Business Park	North West
Blackpool Council	28th January 2016	Blackpool Airport	Blackpool Airport	North West
Cumbria County Council and Carlisle City Council	29th January 2016	Kingmoor Park	Carlisle Kingmoor Park	North West
Cheshire West and Chester Borough Council	29th January 2016	Hooton Park	Cheshire Science Corridor	North West
Cheshire West and Chester Borough Council	29th January 2016	Ince Park (Phase 1) Ellesmere Port	Cheshire Science Corridor	North West
		New Port Business Park, Ellesmere Port	Cheshire Science Corridor	North West
		South Road Former Simms Recycling Ellesmere Port	Cheshire Science Corridor	North West
		Thornton Science Park Ellesmere Port	Cheshire Science Corridor	North West
Stoke-on-Trent City Council	29th January 2016	Chatterley Valley East	Ceramic Valley	West Midlands
		Etruria Valley	Ceramic Valley	West Midlands
Luton Borough Council	29th January 2016	Luton Airport Business Park	Luton Airport	East of England
Derby City Council	23rd June 2016	Infinity Park Derby	Infinity Park Derby Extension	East Midlands
Cornwall Council	12th June 2015	Newquay	Aerohub	Cornwall and the Isles of Scilly
		Goonhilly Earth Station	Aerohub	Cornwall and the Isles of Scilly]

Textual Amendments

F1 Sch. 1 Table 1 substituted (8.5.2018) by The Capital Allowances (Designated Assisted Areas and Amendment) Order 2018 (S.I. 2018/485), arts. 1(2), 3(2)

Articles 1(4) and 2(2)

SCHEDULE 2 U.K.

Commencement Information

I4 Sch. 2 in force at 5.8.2016, see art. 1(2)

Table 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 instrument.

(1)

2001 c. 2; section 45K was inserted by paragraph 3 of Schedule 11 to the Finance Act 2012 (c. 14) and amended by sections 64(1) and (5) and paragraphs 1 and 3 of Schedule 13 to Finance Act 2014 (c. 26).