Paragraph 5 UK expenditure threshold to replace EEA expenditure threshold

United Kingdom

(1)

In section 1217GB (European expenditure condition)—

(a)

in the heading, for “European” substitute “UK”;

(b)

in subsection (1)—

(i)

for “European” (in both places it occurs) substitute “UK”;

(ii)

for “25%” substitute “10%”;

(c)

for subsection (2) substitute—

“(2)

In this Part “UK expenditure” means expenditure on goods or services that are used or consumed in the United Kingdom.”;

(d)

in subsection (3), for “European and non-European expenditure” substitute “expenditure that is and is not UK expenditure”;

(e)

in subsection (5), for “European” substitute “UK”.

(2)

In each of the following provisions, for “European” (in each place it occurs) substitute “UK”—

(a)

section 1217G(1)(b) (conditions for production to qualify for relief);

(b)

section 1217N(2) (provisional satisfaction of European expenditure condition);

(c)

section 1217NA(1), (2) and (3) (European expenditure condition provisionally satisfied not later satisfied).

(3)

In section 1217OB (defined terms)—

(a)

omit the definitions of “European expenditure” and “European expenditure condition”;

(b)

at the end insert—

““UK expenditure” has the meaning given by section 1217GB;

“UK expenditure condition” has the meaning given by section 1217GB.”

(4)

In Schedule 4 (index of defined expressions)—

(a)

omit the entries for “European expenditure (in Part 15C)” and “European expenditure condition (in Part 15C)”;

(b)

at the appropriate places insert—

“

UK expenditure (in Part 15C) section 1217GB(2)

”;

“

UK expenditure condition (in Part 15C) section 1217GB(1)

”.

(5)

For transitional provision in relation to this paragraph, see paragraph 11.