Explanatory note

This Order amends the Capital Allowances (Environmentally Beneficial Plant and Machinery) Order 2003 (S.I. 2003/2076) (“the principal Order”). The principal Order implemented legislation to introduce a scheme for 100% first-year allowances to encourage businesses to invest in environmentally beneficial plant and machinery (as defined by section 45H of the Capital Allowances Act 2001 (c. 2)).

Section 45H enables the Treasury by order to specify qualifying plant and machinery 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 issued on 19th February 2019 which have effect from 29th March 2019.

Article 3 amends the definitions in article 2 of the principal Order of “Water Technology Criteria List” and “Water Technology Product List” to refer to the new lists, which are available online at https://www.gov.uk/government/publications/water-efficient-enhanced-capital-allowances.Copies are available from [email protected].

Article 4 removes two technology classes specified in article 3 of the principal Order to reflect changes to the Water Technology Criteria List.

A Tax Information and Impact Note covering this instrument was published on 29 October 2018 and is available online at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins. It remains an accurate summary of the impacts that apply to this instrument.