The BBC Home Service Transfer Scheme (Capital Allowances) Order 1997
S.I. 1997/491 · Made 26 February 1997
BROADCASTING
Made 26th February 1997
Coming into force 19th March 1997
The Secretary of State, in exercise of the powers conferred on her by section 135 of, and paragraphs 1, 14, 15, 17 and 28 of Schedule 7 to, the Broadcasting Act 1996f1, after consultation with the BBC and with the consent of the Treasury, hereby makes the following Order:
Annotations to the whole text
Footnotes
- f1
Contents
- 1Citation, commencement and interpretation
- 2Machinery and Plant
- 3Leased Fixtures
- 4Agricultural Buildings
- Signature
- Schedule
- I—MACHINERY AND PLANT FIXED TO LAND LEASED BACK TO BBC
- II—OTHER ASSETS
- Explanatory note
1Citation, commencement and interpretation
This Order may be cited as the BBC Home Service Transfer Scheme (Capital Allowances) Order 1997 and shall come into force on 19th March 1997.
In this Order—
“the Act” means the Broadcasting Act 1996;
“the 1990 Act” means the Capital Allowances Act 1990f1;
“the BBC” means the British Broadcasting Corporation;
“Castle” means the company registered with the name of Castle Transmission Services Limited and with the registration number 3196207, being a wholly-owned subsidiary of the BBC;
“the Transfer Day” means 27th February 1997; and
“the Transfer Scheme” means the scheme made by the BBC on 24th February 1997 pursuant to section 131(1) of the Act and with the approval of the Secretary of State given on 26th February 1997 pursuant to section 132(1) of the Act.
2Machinery and Plant
For the purposes of Part II of the 1990 Act (capital allowances in respect of machinery and plant), Castle shall be treated as having incurred on the Transfer Day capital expenditure of the amount specified in column (2) of the relevant Part of the Schedule to this Order on the acquisition of the machinery and plant which are transferred to Castle in accordance with the Transfer Scheme and described in column (1) of the relevant Part of the Schedule to this Order, and which, by virtue of paragraph 14(1)(a) of Schedule 7 to the Act, are to be treated as if they had been acquired by Castle on the Transfer Day for the purposes for which they are, or have been, used by Castle on and after the Transfer Day.
In this article, “the relevant Part” means, with respect to machinery and plant which is so installed or otherwise fixed in or to a building or any other description of land transferred in accordance with the Transfer Scheme to Castle as to become, in law, part of that building or other land, being a building or land which is leased by Castle to the BBC by any lease granted in pursuance of an obligation imposed by a provision contained in the Transfer Scheme by virtue of paragraph 2(1)(g) of Schedule 5 to the Act, Part I, and with respect to other machinery and plant, Part II.
3Leased Fixtures
In respect of each of the leases granted by the BBC to Castle, or by Castle to the BBC, in pursuance of an obligation imposed by a provision contained in the Transfer Scheme by virtue of paragraph 2(1)(g) of Schedule 5 to the Act where such leases are either
leases in relation to which the conditions in paragraphs (a) and (b) of section 55(1) of the 1990 Act (expenditure incurred by incoming lessee: transfer of allowances) are fulfilled; or
leases in relation to which the conditions in paragraphs (a), (c) and (d) of section 56 of the 1990 Act (expenditure incurred by incoming lessee: lessor not entitled to allowances) are fulfilled,
Castle or, as the case may be, the BBC, shall be deemed for the purposes of Part II of that Act to have given as consideration for that lease a capital sum of nil.
4Agricultural Buildings
Where there is transferred to Castle in accordance with the Transfer Scheme property which is the relevant interest in relation to any expenditure for which the BBC would be entitled to an allowance under Part V of the 1990 Act (capital allowances in respect of agricultural buildings) apart from section 128 of that Act, the expenditure which, by virtue of paragraph (b) of section 129(3) of the 1990 Act, is to be treated as the expenditure in respect of which Castle is entitled to the allowances mentioned in that paragraph shall be nil (without any reduction or addition under that paragraph).
Signature
Virginia Bottomley
Secretary of State for National Heritage
26th February 1997
We consent,
Patrick McLoughlin
Richard Ottaway
Two of the Lords Commissioners of Her Majesty’s Treasury
26th February 1997
I—MACHINERY AND PLANT FIXED TO LAND LEASED BACK TO BBC
| (1) | (2) |
|---|---|
| Asset | Capital expenditure |
| Machinery and plant which is so installed or otherwise fixed in or to a building or any other description of land transferred in accordance with the Transfer Scheme to Castle as to become, in law, part of that building or other land, being a building or land which is leased by Castle to the BBC by any lease granted in pursuance of an obligation imposed by a provision contained in the Transfer Scheme by virtue of paragraph 2(1)(g) of Schedule 5 to the Act | Nill |
II—OTHER ASSETS
| (1) | (2) |
|---|---|
| Assets | Capital Expenditure |
| All machinery and plant to which Part II of the 1990 Act applies, other than machinery and plant which is so installed or otherwise fixed in or to a building or any other description of land transferred in accordance with the Transfer Scheme to Castle as to become, in law, part of that building or other land, being a building or land which is leased by Castle to the BBC by any lease granted in pursuance of an obligation imposed by a provision contained in the Transfer Scheme by virtue of paragraph 2(1)(g) of Schedule 5 to the Act | £179,256,085 |
Explanatory note
(This note is not part of the Order)
This Order makes provision determining certain expenditure for the purposes of capital allowances available to Castle Transmission Services Limited (“Castle”), which is the successor, by virtue of a scheme (“the Transfer Scheme”) made by the British Broadcasting Corporation (“the BBC”) on 24th February 1997 pursuant to section 131(1) of the Broadcasting Act 1996 and approved by the Secretary of State on 26th February 1997, to certain of the property, rights and liabilities of the BBC attributable to the transmission of the BBC’s home services and ancillary services and activities.
Part II of the Capital Allowances Act 1990 (“the 1990 Act”) provides for the calculation of capital allowances available in respect of machinery and plant, and leased fixtures. Part V of the 1990 Act provides for the calculation of capital allowances in respect of agricultural buildings.
Article 2 of this Order and the Schedule specify the amount of capital expenditure which Castle is deemed to have incurred on the transfer day in respect of the machinery and plant (including leased fixtures) which vested in it in accordance with the Transfer Scheme.
Article 3 of this Order specified that Castle (in respect of leases granted by the BBC) and the BBC (in respect of leases granted by Castle) shall each be deemed to have paid a nil capital sum for the grant of any leases fulfilling the conditions therein set out which are granted in pursuance of an obligation in the Transfer Scheme.
Article 4 provides that, where relevant interests in agricultural buildings have been transferred from the BBC to Castle pursuant to the Transfer Scheme, the expenditure treated as that in respect of which Castle is entitled to capital allowances shall be nil.