Citation, commencement, effect and interpretation

1.-(1) This Order may be cited as the Capital Allowances (Designated Assisted Areas) Order 2015.

(2) This Order comes into force on 7th January 2016.

(3) An area designated by virtue of Schedule 1 to this Order is to be treated as having been designated on 1st April 2012.

(4) An area designated by virtue of Schedule 2 to this Order is to be treated as having been designated on 1st April 2015.

(5) In this Order "CAA 2001" means the Capital Allowances Act 2001.

Designation of areas

2.-(1) The area 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 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.

Articles 1(3) and 2(2)

SCHEDULE 1

Articles 1(4) and 2(2)

SCHEDULE 2

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 1st April 2012 if the area is listed in Schedule 1 and on or after 1st April 2015 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 1st April 2012 for areas listed in Schedule 1 and on or after 1st April 2015 for areas listed in Schedule 2.

A Tax Information and Impact Note covering enterprise zones was published on 29th November 2011 alongside the Autumn Statement 2011 and is available on the HMRC website at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/192108/capital_allowance_enterprise_zones.pdf. It remains an accurate summary of the impacts that apply to this instrument.