Explanatory note

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.