Introduction Section 212U Cap on first-year allowances: expenditure on plant and machinery for use in designated assisted areas
34.New section 212U(1) and (2) cap the amount of expenditure incurred on plant or machinery, primarily for use in a particular designated assisted area that can qualify for the new FYAs, at a maximum of €125 million per person (“the investor”), or at a maximum of €125 million for any such expenditure, incurred by any person, in respect of the same “single investment project”.  The cap on the new FYAs, is expressed in terms of a “single investment project”, in order to ensure compliance with the GBER in relation to the cumulation of aid, and in recognition of the fact that the GBER does not provide a general exemption for large investment projects.
35.New section 212U(3) provides how expenditure incurred in a currency other than the euro is to be converted into Euros for the purposes of the €125 million cap.
36.New section 212U(4) provides that the Treasury may by regulations increase the cap.
37.New section 212U (5) defines terms used in new section 212U and provides that the term “single investment project” has the same meaning as in the GBER.
38.Paragraph 7(2) makes a minor consequential amendment to the heading to Chapter 16B.
39.Paragraph (8) provides that the amendments made by the new Schedule have effect for chargeable periods ending on or after 1 April 2012.