Explanatory note

The Order amends the Capital Allowances (Environmentally Beneficial Plant and Machinery) Order 2003 (S.I. 2003/2076) (the “Principal Order”). The Principal Order provided for 100% first-year allowances for environmentally beneficial plant and machinery (as defined by section 45H of the Capital Allowances Act 2001 (c. 2)).

Section 45H enables the Treasury to specify qualifying plant and machinery by order by reference to a description or criteria given by the Secretary of State in a technology or product list. The Secretary of State for the Environment, Food and Rural Affairs has issued the Water Technology Criteria List and Water Technology Product List. These lists have been revised and replaced by new lists dated June 2016, issued on 6 July 2016, which have effect from 6 October 2016.

Article 3 amends the definitions of the “Water Technology Criteria List” and the “Water Technology Product List” to refer to the new lists, which are available at https://www.gov.uk/government/publications/water-efficient-enhanced-capital-allowances.

Article 4 revokes the Capital Allowances (Environmentally Beneficial Plant and Machinery) (Amendment) Order 2016 (S.I. 2016/926) which contained an error at article 3(a).

A Tax Information and Impact Note covering this instrument will be published on https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.