Explanatory note

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 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, 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, 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.

A Tax Information and Impact Note covering this instrument was published on 29th November 2011 alongside the Autumn Statement 2011 and is available on the HMRC website at www.hmrc.gov.uk/tiin/tiin690.pdf. It remains an accurate summary of the impacts that apply to this instrument.