|
| |
|
reference to which paragraph 9(7) will apply to him immediately |
| |
before the relevant time; and |
| |
(b) | in other cases, the scheme by reference to which paragraph 9(7) |
| |
applied to him immediately before the time that was the relevant |
| |
time in relation to him on the first occasion on which he was owed |
| 5 |
| |
| and the reference, in relation to such a person, to the provisions of that |
| |
scheme is a reference to its provisions as in force immediately before the |
| |
time specified in sub-paragraph (7). |
| |
| 10 |
(a) | in a case falling within sub-paragraph (6)(a), the relevant time; or |
| |
(b) | in a case falling within sub-paragraph (6)(b), the relevant time in |
| |
relation to the person on the first occasion on which he was owed a |
| |
duty under either sub-paragraph (2) or paragraph 11(3). |
| |
| 15 |
(a) | is a participant in a non-nuclear pension scheme by virtue of the |
| |
exercise of an option in a case in which the Secretary of State |
| |
discharged his duty to that person under sub-paragraph (2) by |
| |
reference to that option, or |
| |
(b) | is or will become entitled to exercise an option to become a |
| 20 |
participant in such a pension scheme in a case in which the Secretary |
| |
of State discharged his duty to that person under sub-paragraph (2) |
| |
by reference to that entitlement, |
| |
| this Part of this Schedule shall have effect in relation to that person as if that |
| |
scheme were a nuclear pension scheme. |
| 25 |
(9) | Sub-paragraph (8) does not apply in relation to a person to whom paragraph |
| |
9(5)(d)(ii) applied when the Secretary of State discharged his duty to that |
| |
person under sub-paragraph (2) unless the person’s employer exercises the |
| |
entitlement mentioned in paragraph 9(5)(d)(ii). |
| |
(10) | In this paragraph “relevant time” has the same meaning as in paragraph 9. |
| 30 |
Protection on a transfer in accordance with transfer arrangements |
| |
11 (1) | It shall be the duty of the NDA to secure that provision is made for ensuring |
| |
that consultation with the persons specified in sub-paragraph (2) takes place |
| |
before any transfer arrangements in relation to which persons are entitled to |
| |
pension protection take effect. |
| 35 |
| |
| |
(b) | the Secretary of State; |
| |
| |
(d) | persons appearing to the NDA to represent persons who will be |
| 40 |
entitled to pension protection in relation to the arrangements. |
| |
(3) | Before such transfer arrangements take effect, the NDA must satisfy itself |
| |
that every person entitled to pension protection in relation to the |
| |
arrangements will be entitled, by virtue of the employment that he will hold |
| |
| 45 |
(a) | to exercise an option of becoming a participant in an appropriate |
| |
| |
|
| |
|
| |
|
(b) | in the case of a person to whom paragraph 9(7)(c) will apply |
| |
immediately before the relevant time, to exercise such an option on |
| |
or before attaining the age or fulfilling the condition in question. |
| |
(4) | The NDA’s duty under sub-paragraph (3) is owed to every person who is |
| |
entitled to pension protection in relation to the transfer arrangements. |
| 5 |
(5) | In the case of a person to whom paragraph 9(5)(d)(ii) applies, the references |
| |
in sub-paragraph (3) to a person being entitled to exercise an option are to |
| |
be construed as references to a person being entitled to exercise an option if |
| |
his employer exercises the entitlement mentioned in paragraph 9(5)(d)(ii). |
| |
(6) | For the purposes of sub-paragraph (3), a pension scheme is an appropriate |
| 10 |
pension scheme in relation to a person if the NDA is satisfied that— |
| |
(a) | taking into account the other benefits (if any) that are conferred on or |
| |
made available to him as a result of the employment that he will hold |
| |
after the relevant time, and |
| |
(b) | taking the benefits that are available under the provisions of that |
| 15 |
pension scheme as a whole, |
| |
| the benefits that are available under those provisions are no less favourable |
| |
than the benefits available under the provisions (taken as a whole) of the |
| |
nuclear pension scheme in respect of which he is entitled to protection under |
| |
this Part of this Schedule. |
| 20 |
(7) | In sub-paragraph (6) the reference to the scheme in respect of which a person |
| |
is entitled to protection under this Part of this Schedule is a reference to— |
| |
(a) | in the case of a person who has not previously been owed a duty |
| |
under either sub-paragraph (3) or paragraph 10(2), the scheme by |
| |
reference to which paragraph 9(7) will apply to him immediately |
| 25 |
before the relevant time; and |
| |
(b) | in other cases, the scheme by reference to which paragraph 9(7) |
| |
applied to him immediately before the time that was the relevant |
| |
time in relation to him on the first occasion on which he was owed |
| |
| 30 |
| and the reference, in relation to such a person, to the provisions of that |
| |
scheme is a reference to its provisions as in force immediately before the |
| |
time specified in sub-paragraph (8). |
| |
| |
(a) | in a case falling within sub-paragraph (7)(a), the relevant time; or |
| 35 |
(b) | in a case falling within sub-paragraph (7)(b), the relevant time in |
| |
relation to the person on the first occasion on which he was owed a |
| |
duty under either sub-paragraph (3) or paragraph 10(2). |
| |
| |
(a) | is a participant in a non-nuclear pension scheme by virtue of the |
| 40 |
exercise of an option in a case in which the NDA discharged its duty |
| |
to that person under sub-paragraph (3) by reference to that option, or |
| |
(b) | is or will become entitled to exercise an option to become a |
| |
participant in such a pension scheme in a case in which the NDA |
| |
discharged its duty to that person under sub-paragraph (3) by |
| 45 |
reference to that entitlement, |
| |
| this Part of this Schedule shall have effect in relation to that person as if that |
| |
scheme were a nuclear pension scheme. |
| |
(10) | Sub-paragraph (9) does not apply in relation to a person to whom paragraph |
| |
9(5)(d)(ii) applied when the NDA discharged its duty to that person under |
| 50 |
|
| |
|
| |
|
sub-paragraph (3) unless the person’s employer exercises the entitlement |
| |
mentioned in paragraph 9(5)(d)(ii). |
| |
(11) | In this paragraph “relevant time” has the same meaning as in paragraph 9. |
| |
Modification of NDA schemes |
| |
12 (1) | The Secretary of State shall have power by direction to make such |
| 5 |
modifications of an NDA pension scheme as he considers appropriate for |
| |
| |
(a) | in relation to any proposed transfer, or |
| |
(b) | in relation to transfers that he considers may occur, |
| |
| that the scheme will be an appropriate pension scheme for the purposes of |
| 10 |
| |
(2) | The NDA shall also have power by direction to make such modifications of |
| |
an NDA pension scheme as it considers appropriate for the purpose of |
| |
| |
(a) | in relation to any proposed transfer, or |
| 15 |
(b) | in relation to transfers that it considers may occur, |
| |
| that the scheme will be an appropriate pension scheme for the purposes of |
| |
| |
(3) | Before making a modification under this paragraph the Secretary of State |
| |
| 20 |
| |
(b) | such persons as appear to him to represent the employees likely to be |
| |
affected by the modification. |
| |
(4) | Before making a modification under this paragraph the NDA must— |
| |
(a) | consult such persons as appear to it to represent the employees likely |
| 25 |
to be affected by the modification; and |
| |
(b) | obtain the consent of the Secretary of State to the modification. |
| |
| |
UKAEA pensions for employees of designated BNFL companies |
| |
13 (1) | A UKAEA pension scheme may apply to employees of a designated BNFL |
| 30 |
company which is publicly controlled as it applies to persons to whom it |
| |
applies apart from this paragraph. |
| |
(2) | The Secretary of State may, by direction, require the UKAEA to make such |
| |
modifications of a UKAEA pension scheme as the Secretary of State |
| |
considers appropriate in respect of the participation in such a scheme of |
| 35 |
employees of a designated BNFL company which is publicly controlled. |
| |
(3) | The Secretary of State may also, by direction, require the UKAEA to make |
| |
such modifications of a UKAEA pension scheme as the Secretary of State |
| |
considers appropriate for applying the provisions of such a scheme to |
| |
| 40 |
(a) | who are directors, or other officers, of a designated BNFL company |
| |
which is publicly controlled; and |
| |
(b) | who are not employees of that company. |
| |
|
| |
|
| |
|
(4) | A direction under this paragraph may require the UKAEA to make such |
| |
supplemental, consequential and transitional provision modifying a |
| |
UKAEA pension scheme as the Secretary of State considers appropriate. |
| |
(5) | Before giving a direction under this paragraph, the Secretary of State must |
| |
| 5 |
| |
(b) | the designated BNFL company in question; |
| |
| |
(d) | such persons as appear to him to represent the employees, or |
| |
directors or other officers, likely to be affected by the direction. |
| 10 |
(6) | The power of the Secretary of State to give directions under this paragraph— |
| |
(a) | is in addition to the powers of the Secretary of State to give directions |
| |
to the UKAEA under paragraphs 5 and 6 of this Schedule or section |
| |
3 of the Atomic Energy Authority Act 1954 (c. 32); and |
| |
(b) | is to be disregarded in construing those powers. |
| 15 |
(7) | A designated BNFL company must pay such amounts to the UKAEA in |
| |
respect of the participation in a pension scheme by virtue of this paragraph |
| |
of employees of the company, or of any of its directors or other officers, as |
| |
| |
(a) | agreed between the company and the UKAEA; or |
| 20 |
(b) | in the absence of such agreement, determined by the Secretary of |
| |
| |
(8) | In this paragraph “designated BNFL company” has the same meaning as in |
| |
| |
| 25 |
| |
Taxation provisions relating to nuclear transfer schemes |
| |
| |
Transfers to the NDA or a subsidiary of the NDA |
| |
Trading losses: transfer of company carrying on exempt activities |
| |
1 (1) | This paragraph applies for the purposes of corporation tax where— |
| 30 |
(a) | in consequence of a section 42 scheme, a company which is not an |
| |
NDA company becomes an NDA company falling within section |
| |
| |
(b) | the company carried on exempt activities before the coming into |
| |
| 35 |
(2) | Trading losses attributable to the exempt activities carried on by the |
| |
company before the coming into force of the scheme shall be treated, in |
| |
relation to accounting periods beginning at or after that time, as |
| |
| |
(3) | For the purpose of determining the extent to which trading losses incurred |
| 40 |
by a company are attributable to exempt activities, such apportionments of |
| |
receipts, expenses, assets and liabilities shall be made as may be just. |
| |
|
| |
|
| |
|
Trading losses: transfer of undertaking carrying on exempt activities |
| |
2 (1) | This paragraph applies for the purposes of corporation tax where— |
| |
(a) | a company (“the transferor company”) which is not an NDA |
| |
company is carrying on a trade which consists in or includes exempt |
| |
| 5 |
(b) | in consequence of a section 42 scheme— |
| |
(i) | the transferor company ceases to carry on that trade or a part |
| |
of it which consists in or includes such activities; and |
| |
(ii) | the NDA or an NDA company begins to carry on that trade |
| |
| 10 |
(2) | Trading losses attributable to so much of the trade or part of a trade as |
| |
consists in exempt activities carried on by the transferor company before the |
| |
time when the NDA or the NDA company begins to carry on the trade or |
| |
that part of it shall be treated, in relation to accounting periods ending after |
| |
that time, as extinguished. |
| 15 |
(3) | Subsections (3), (4A), (7) to (9) and (11) of section 343 of the Taxes Act |
| |
(company reconstruction without change of ownership) shall apply in |
| |
relation to an unextinguished loss sustained by the transferor company in |
| |
carrying on the trade or the part of it in question as if— |
| |
(a) | the case were a case falling within subsection (1) of that section; |
| 20 |
(b) | the transferor company were the predecessor; and |
| |
(c) | the NDA or the NDA company in question were the successor. |
| |
Chargeable gains: assets to be treated as disposed without a gain or a loss |
| |
3 (1) | This paragraph applies for the purposes of the 1992 Act where there is a |
| |
transfer of an asset to the NDA or a subsidiary of the NDA in accordance |
| 25 |
with a section 42 scheme. |
| |
(2) | The asset shall be treated as disposed of to the NDA or (as the case may be) |
| |
to its subsidiary for a consideration of such amount as would secure that, on |
| |
the disposal, neither a gain nor a loss accrues to the transferor. |
| |
(3) | This paragraph has effect subject to paragraph 4. |
| 30 |
(4) | This paragraph does not apply in relation to a transfer to the NDA or to a |
| |
subsidiary of the NDA in accordance with a nuclear transfer scheme of |
| |
securities of a company, in consequence of which that company ceases to be |
| |
a relevant site licensee. |
| |
(5) | In this paragraph “relevant site licensee” has the same meaning as in |
| 35 |
subsection (4) of section 30 (see subsection (5)). |
| |
Chargeable gains: assets treated as acquired at nil cost |
| |
4 (1) | This paragraph applies for the purposes of the 1992 Act where the NDA or |
| |
a subsidiary of the NDA disposes of an asset which— |
| |
(a) | was acquired by the NDA or that subsidiary in accordance with a |
| 40 |
section 42 scheme or a section 43 scheme; and |
| |
(b) | is not an asset which, immediately before its transfer to the NDA or |
| |
that subsidiary, was comprised in the Nuclear Liabilities Investment |
| |
| |
|
| |
|
| |
|
(2) | No amount shall be allowable as a deduction under section 38(1)(a) or (b) of |
| |
the 1992 Act (acquisition and enhancement costs) in the computation of the |
| |
gain accruing on the disposal. |
| |
(3) | Accordingly, in a case where the disposal is one which under any enactment |
| |
is treated as a disposal on which neither a gain nor a loss accrues to the NDA |
| 5 |
or its subsidiary, the consideration for the disposal shall be treated as equal |
| |
to the amount allowable as a deduction from that consideration under |
| |
section 38(1)(c) of the 1992 Act (incidental costs of disposal). |
| |
(4) | This paragraph does not apply in the case of a disposal which under |
| |
paragraph 29 is to be treated as a disposal on which neither a gain nor a loss |
| 10 |
accrues to the NDA or a subsidiary of the NDA. |
| |
Chargeable gains: degrouping charges |
| |
5 (1) | This paragraph applies if a company (“the degrouped company”)— |
| |
(a) | acquired an asset from another company at a time when both were |
| |
members of the same group of companies (“the old group”); and |
| 15 |
(b) | ceases, by virtue of a transfer to the NDA or a subsidiary of the NDA |
| |
in accordance with a section 42 scheme, to be a member of the old |
| |
| |
(2) | Section 179 of the 1992 Act (company ceasing to be member of group) is not |
| |
to treat the degrouped company as having by virtue of the transfer sold and |
| 20 |
immediately reacquired the asset. |
| |
(3) | Where sub-paragraph (2) has applied to an asset, section 179 of the 1992 Act |
| |
is to have effect on and after the first subsequent occasion on which the |
| |
degrouped company ceases to be a member of a group of companies (“the |
| |
| 25 |
(a) | the degrouped company, and |
| |
(b) | the company from which it acquired the asset, |
| |
| had been members of the new group at the time of acquisition. |
| |
(4) | Expressions used in this paragraph and in section 179 of the 1992 Act have |
| |
the same meanings in this paragraph as in that section. |
| 30 |
Chargeable gains: disposal of debts |
| |
6 (1) | This paragraph applies if— |
| |
(a) | a debt owed to any person is transferred to the NDA or a subsidiary |
| |
of the NDA in accordance with a section 42 scheme; and |
| |
(b) | the transferor would (apart from this paragraph) be the original |
| 35 |
creditor in relation to that debt for the purposes of section 251 of the |
| |
1992 Act (disposal of debts). |
| |
(2) | The 1992 Act is to have effect as if the NDA or (as the case may be) its |
| |
subsidiary (and not the transferor) were the original creditor for those |
| |
| 40 |
Capital allowances: transfer of whole trade |
| |
7 (1) | This paragraph applies where— |
| |
(a) | a company (“the transferor company”) which is not a subsidiary of |
| |
the NDA is carrying on a trade; and |
| |
|
| |
|
| |
|
(b) | in consequence of a section 42 scheme, the transferor company ceases |
| |
to carry on that trade and the NDA or a subsidiary of the NDA |
| |
| |
(2) | For the purposes of the allowances and charges provided for by the 2001 Act, |
| |
the trade is not to be treated as permanently discontinued, nor a new trade |
| 5 |
as set up; but sub-paragraphs (3) and (4) of this paragraph are to apply. |
| |
(3) | There are to be made to or on the NDA or (as the case may be) its subsidiary, |
| |
in accordance with the 2001 Act, all such allowances and charges as would, |
| |
if the transferor company had continued to carry on the trade, have fallen to |
| |
be made to or on that company. |
| 10 |
(4) | The amounts of those allowances and charges are to be computed as if— |
| |
(a) | the NDA or its subsidiary had been carrying on the trade since the |
| |
transferor company began to do so; and |
| |
(b) | everything done to or by the transferor company had been done to |
| |
or by the NDA or that subsidiary; |
| 15 |
| but so that transfers in accordance with the section 42 scheme, so far as they |
| |
relate to assets in use for the purposes of the trade, shall not be treated as |
| |
giving rise to an allowance or charge. |
| |
Capital allowances: transfer of part of a trade |
| |
| 20 |
(a) | a company (“the transferor company”) which is not a subsidiary of |
| |
the NDA is carrying on a trade, and |
| |
(b) | in consequence of a section 42 scheme, the transferor company ceases |
| |
to carry on that trade and the NDA or a subsidiary of the NDA |
| |
begins to carry on activities of the trade as part of a trade carried on |
| 25 |
by the NDA or that subsidiary, |
| |
| then that part of the trade carried on by the NDA or its subsidiary shall be |
| |
treated for the purposes of paragraph 7 as a separate trade. |
| |
| |
(a) | a company (“the transferor company”) which is not a subsidiary of |
| 30 |
the NDA is carrying on a trade, and |
| |
(b) | in consequence of a section 42 scheme, the transferor company ceases |
| |
to carry on a part of that trade and the NDA or a subsidiary of the |
| |
NDA begins to carry on activities of that part of that trade, |
| |
| then the transferor company shall be treated for the purposes of paragraph |
| 35 |
7 and sub-paragraph (1) of this paragraph as having carried on that part of |
| |
its trade as a separate trade. |
| |
(3) | Where activities fall to be treated for the purposes of this paragraph as a |
| |
separate trade, such apportionments of receipts, expenses, assets and |
| |
liabilities shall be made for the purposes of the 2001 Act as may be just. |
| 40 |
Capital allowances: transfer of plant or machinery |
| |
9 (1) | This paragraph applies where— |
| |
(a) | there is a transfer of property to the NDA or a subsidiary of the NDA |
| |
in accordance with a section 42 scheme; |
| |
(b) | the property is plant or machinery; and |
| 45 |
(c) | paragraph 7 does not apply in relation to the transfer of the plant or |
| |
| |
|
| |
|