Under the existing Enterprise Zone legislation, it is possible for companies to claim 100% Enhanced Capital Allowances (‘ECAs’) on qualifying plant and machinery for use within the designated Enterprise Zones. In order to qualify for the ECAs, the qualifying expenditure must be incurred within 8 years beginning 1 April 2012 (i.e. by 31 March 2020) and the plant and machinery must be used in the Assisted Area.
The Chancellor announced that legislation will be put in place to ensure that investors in Enterprise Zones are entitled to claim ECA’s for the eight year period from the date of the announcement creating the Enterprise Zone, rather than 1 April 2012.
This will benefit those companies looking to making investments in Enterprise Zones in the future.