The BBC Home Service Transfer Scheme (Capital Allowances) Order 1997

• Citation: S.I. 1997/491
• Sections: 4

Section 1 Citation, commencement and interpretation

(1) This Order may be cited as the BBC Home Service Transfer Scheme (Capital Allowances) Order 1997 and shall come into force on 19th March 1997.

(2) In this Order—

(a) “ the Act ” means the Broadcasting Act 1996;

(b) “the 1990 Act ” means the Capital Allowances Act 1990 ;

(c) “the BBC” means the British Broadcasting Corporation;

(d) “ Castle ” means the company registered with the name of Castle Transmission Services Limited and with the registration number 3196207, being a wholly-owned subsidiary of the BBC;

(e) “the Transfer Day ” means 27th February 1997; and

(f) “the Transfer Scheme ” means the scheme made by the BBC on 24th February 1997 pursuant to section 131(1) of the Act and with the approval of the Secretary of State given on 26th February 1997 pursuant to section 132(1) of the Act.

Section 2 Machinery and Plant

(1) For the purposes of Part II of the 1990 Act (capital allowances in respect of machinery and plant), Castle shall be treated as having incurred on the Transfer Day capital expenditure of the amount specified in column (2) of the relevant Part of the Schedule to this Order on the acquisition of the machinery and plant which are transferred to Castle in accordance with the Transfer Scheme and described in column (1) of the relevant Part of the Schedule to this Order, and which, by virtue of paragraph 14(1)(a) of Schedule 7 to the Act, are to be treated as if they had been acquired by Castle on the Transfer Day for the purposes for which they are, or have been, used by Castle on and after the Transfer Day.

(2) In this article, “the relevant Part” means, with respect to machinery and plant which is so installed or otherwise fixed in or to a building or any other description of land transferred in accordance with the Transfer Scheme to Castle as to become, in law, part of that building or other land, being a building or land which is leased by Castle to the BBC by any lease granted in pursuance of an obligation imposed by a provision contained in the Transfer Scheme by virtue of paragraph 2(1)(g) of Schedule 5 to the Act, Part I, and with respect to other machinery and plant, Part II.

Section 3 Leased Fixtures

In respect of each of the leases granted by the BBC to Castle, or by Castle to the BBC, in pursuance of an obligation imposed by a provision contained in the Transfer Scheme by virtue of paragraph 2(1)(g) of Schedule 5 to the Act where such leases are either

(a) leases in relation to which the conditions in paragraphs (a) and (b) of section 55(1) of the 1990 Act (expenditure incurred by incoming lessee: transfer of allowances) are fulfilled; or

(b) leases in relation to which the conditions in paragraphs (a), (c) and (d) of section 56 of the 1990 Act (expenditure incurred by incoming lessee: lessor not entitled to allowances) are fulfilled,

Castle or, as the case may be, the BBC, shall be deemed for the purposes of Part II of that Act to have given as consideration for that lease a capital sum of nil.

Section 4 Agricultural Buildings

Where there is transferred to Castle in accordance with the Transfer Scheme property which is the relevant interest in relation to any expenditure for which the BBC would be entitled to an allowance under Part V of the 1990 Act (capital allowances in respect of agricultural buildings) apart from section 128 of that Act, the expenditure which, by virtue of paragraph (b) of section 129(3) of the 1990 Act, is to be treated as the expenditure in respect of which Castle is entitled to the allowances mentioned in that paragraph shall be nil (without any reduction or addition under that paragraph).