Investment and Building Grants Act 1971

1 Abolition of investment grants.

(1) Subject to subsections (2) to (5) below, no grant shall be made under Part I of the [1966 c. 34.] Industrial Development Act 1966 (assistance towards provision of new business assets) in respect of expenditure incurred on or after 27th October 1970.

(2) Subsection (1) above shall not prevent the making of a grant under the said Part I in respect of any expenditure so incurred as respects which the Secretary of State is satisfied as follows—

(a) that it consists of a sum or sums falling due under a contract made before the said 27th October, and

(b) that the person incurring it has not done so by reason of any thing done, or any transaction entered into, on or after that date by him or his agent:

Provided that there shall be disregarded for the purposes of paragraph (b) above—

(a) any transfer of the benefit of a contract to a member of a group by any other member of that group, and

(b) in the case of a contract subject to a condition precedent, any act done in or towards satisfaction of the condition.

(3) Where, under a contract made or varied (whether by agreement or under a power contained in the contract) on or after the said 27th October, a person incurs expenditure as respects which the Secretary of State is satisfied that it is in respect of the supply to that person of works, goods or services in substitution for works, goods or services of the same or a substantially similar description which were to have been supplied to him or, if he is a member of a group, to any other member of that group under a contract made before that date, subsection (1) above shall not prevent the making to that person of a grant under the said Part I in respect of so much of that expenditure as does not exceed the expenditure which he or, as the case may be, the other member of the group would have incurred in respect of the supply of the last-mentioned works, goods or services.

(4) Where a person was on 26th October 1970 entitled to the benefit of a contract for the construction of a new ship, subsection (1) above shall not prevent the making of a grant under the said Part I in respect of expenditure incurred by that person or, if he is a member of a group, by any other member of the group in the provision of the ship, or of any ship appearing to the Secretary of State to be of the same or a substantially similar description thereto and supplied in substitution therefor, so far as that expenditure either consists of a sum or sums falling due under a contract made before the said 27th October or is in respect of goods or services supplied on or before the date on which the ship is delivered.

(5) Where a grant may be made under the said Part I in respect of expenditure incurred by a person in the provision of an asset imported into the United Kingdom on or after the said 27th October, subsection (1) above shall not prevent the making of a grant in respect of any expenditure incurred by him in respect of duty chargeable on the importation under section 1 of the [1958 c. 6.] Import Duties Act 1958.

(6) The Secretary of State may from time to time provide by order that applications for grant under the said Part I in respect of expenditure incurred before any date, or during any period, specified in the order—

(a) are to be made before a date specified for the purpose in relation to that expenditure, and

(b) are to be made in such form and manner, and to contain such particulars and be accompanied by such documents,

as the Secretary of State may direct; and no grant shall be made under the said Part I in respect of any expenditure to which an order under this subsection relates except on an application made before the specified date and complying or, in the opinion of the Secretary of State, substantially complying with any relevant direction.

An order under this subsection shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

(7) This section shall be construed as one with the said Part I; and for the purposes of this section, a group consists of a body corporate together with all other bodies corporate which are its subsidiaries within the meaning of section 154 of the [1948 c. 38.] Companies Act 1948.

(8) The following provisions of the said Act of 1966 are hereby repealed—

• subsections (1)(b) and (2) of section 7 (power to specify further assets eligible for grant),

• section 11 (advisory committees), and

• section 12 (annual reports).