The Capital Allowances (Designated Assisted Areas and Amendment) Order 2018
Citation, commencement, effect and interpretation1.
(1)
This Order may be cited as the Capital Allowances (Designated Assisted Areas and Amendment) Order 2018.
(2)
This Order comes into force on 8th May 2018.
(3)
An area designated by virtue of the Schedule to this Order is to be treated as having been designated on 16th March 2016.
(4)
In this Order “CAA 2001” means the Capital Allowances Act 2001.
Designation of areas2.
(1)
The areas shown enclosed by a red 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 table in the Schedule to this Order on the date listed in column 2 of that table.
(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.
Amendment of the Capital Allowances (Designated Assisted Areas) Order 20163.
(1)
(2)
“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”.
SCHEDULE
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 |
The Council of the City of Sunderland and the Council of the Borough of South Tyneside | 6th April 2018 | International Advanced Manufacturing Park, Sunderland and South Tyneside | North East Round 2 | North East |
The Council of the City of Sunderland | 6th April 2018 | Port of Sunderland, Sunderland | North East Round 2 | North East |
South Tyneside Metropolitan Borough Council | 6th April 2018 | Holborn Riverside, South Shields | North East Round 2 | North East |
Northumberland County Council | 6th April 2018 | Ashwood Business Park, Ashington | North East Round 2 | North East |
The Council of the City of Newcastle upon Tyne | 6th April 2018 | North Bank of the Tyne extension | North East Round 2 | North East |
Plymouth City Council | 6th April 2018 | Plymouth South Yard | Oceansgate | South West |
This Order designates areas as designated assisted areas for the purposes of section 45K of the Capital Allowances Act 2001 (c. 2) (“CAA 2001”) and corrects errors made in the Capital Allowances (Designated Assisted Areas) Order 2016 (S.I. 2016/751).
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 new 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, an order may have retrospective effect. Article 1 provides that an area designated by the Schedule to this Order is to be treated as having been so designated on 16th March 2016, so that this Order will ensure that the relevant FYAs provisions may have effect in relation to expenditure incurred on or after 16th March 2016.
Article 3 replaces Table 1 in Schedule 1 to S.I. 2016/751 to correct errors in that table.
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.