Citation, commencement and interpretation

1.-(1) This Order may be cited as the BBC World Service Transfer Scheme (Capital Allowances) Order 1997 and shall come into force on 16th April 1997.

(2) In this Order-

(a)"the Act" means the Broadcasting Act 1996;

(b)"the 1990 Act" means the Capital Allowances Act 1990(2);

(c)"the BBC" means the British Broadcasting Corporation;

(d)"the Transfer Day" means 27th March 1997;

(e)"the Transfer Scheme" means the scheme made by the BBC on 21st March 1997 pursuant to section 131(1) of the Act and with the approval of the Secretary of State given on 26th March 1997 pursuant to section 132(1) of the Act; and

(f)"WSCo" means the company with the registration number 3196204, being a wholly-owned subsidiary of the BBC.

Machinery and Plant

2.-(1) For the purposes of Part II of the 1990 Act (capital allowances in respect of machinery and plant), WSCo 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 WSCo 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 WSCo on the Transfer Day for the purposes for which they are, or have been, used by WSCo 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 WSCo as to become, in law, part of that building or other land, being a building or land which is leased by WSCo 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.

Leased Fixtures

3. In respect of each of the leases granted by the BBC to WSCo or by WSCo 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,

WSCo 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.

Agricultural Buildings

4. Where there is transferred to WSCo 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 repect 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 expenduture in respect of which WSCo is entitled to the allowances mentioned in that paragraph shall be nil (without any reduction or addition under that paragraph).

Article 2

SCHEDULE

PART I-MACHINERY AND PLANT FIXED TO LAND LEASED BACK TO BBC

PART II-OTHER ASSETS

Explanatory Note

(This note is not part of the Order)

This Order makes provision determining certain expenditure for the purposes of capital allowances available to WSCo, which is the successor, by virtue of a scheme ("the Transfer Scheme") made by the British Broadcasting Corporation ("the BBC") on 21st March 1997 pursuant to section 131(1) of the Broadcasting Act 1996 and approved by the Secretary of State of 26th March 1997, to certain of the property, rights and liabilities of the BBC attributable to the trasmission of the BBC's World Service and ancillary services and activities.

Part II of the Capital Allowances Act 1990 ("the 1990 Act") provides for the calculation of capital allowances available in respect of machinery and plant, and leased fixtures. Part V of the 1990 Act provides for the calculation of capital allowances in respect of agricultural buildings.

Article 2 of this Order and the Schedule specify the amount of capital expenditure which WSCo is deemed to have incurred on the transfer day in respect of the machinery and plant (including leased fixtures) which vested in it in accordance with the Transfer Scheme.

Article 3 of this Order specifies that WSCo (in respect of leases granted by the BBC) and the BBC (in respect of leases granted by WSCo) shall each be deemed to have paid a nil capital sum for the grant of any leases fulfilling the conditions therein set out which are granted in pursuance of an obligation in the Transfer Scheme.

Article 4 provides that, where relevant interests in agricultural buildings have been transferred from the BBC to WSCo pursuant to the Transfer Scheme, the expenditure treated as that in respect of which WSCo is entitled to captital allowances shall be nil.