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Energy Bill [HL]


Energy Bill [HL]
Part 1 — The Civil Nuclear Industry
Chapter 1 — Nuclear decommissioning

27

 

(b)   

it holds a nuclear site licence for a site the whole or part of which is

either a designated site or a site in or on which there is a designated

installation or designated facility;

(c)   

in a case where there is in force a management contract relating to the

whole or a part of the site to which that licence relates, or to an

5

installation or facility in or on that site, the parties to the contract

include either—

(i)   

the company in question; or

(ii)   

a company which owns directly or indirectly at least 90 per cent

of the ordinary share capital of that company; and

10

(d)   

such further conditions that are required by regulations made by the

Treasury to be satisfied have been satisfied.

(6)   

The concurrence of the Secretary of State is required for the making of any

regulations under this section by the Treasury.

(7)   

A statutory instrument containing regulations under this section shall be

15

subject to annulment in pursuance of a resolution of the House of Commons.

(8)   

In this section—

   

“management contract” means a contract between the NDA and another

person under which the other person is required to do or secure

anything that the NDA is required to secure for the purpose of

20

discharging its responsibilities;

   

“owned directly or indirectly” has the same meaning as in section 838 of

the Income and Corporation Taxes Act 1988 (c. 1) (subsidiaries), and

“owns directly or indirectly” is to be construed accordingly;

   

“trading income”, in relation to the NDA or an NDA company, means

25

(subject to subsection (9)) income which falls or (apart from this section)

would fall to be included—

(a)   

in respect of a trade, and

(b)   

as chargeable to tax under Case I of Schedule D,

   

in the total profits for the purposes of corporation tax of the NDA or

30

that company;

   

“trading losses”, in relation to the NDA or an NDA company, means

losses incurred in a trade in respect of which the NDA or that company

is or (apart from this section) would be within the charge to corporation

tax under Case I of Schedule D.

35

(9)   

For the purposes of this section income consisting in—

(a)   

anything giving rise to a credit that would fall to be brought into

account for the purposes of Chapter 2 of Part 4 of the Finance Act 1996

(c. 8) (loan relationships), or

(b)   

a credit falling to be brought into account under Schedule 26 to the

40

Finance Act 2002 (c. 23) (derivative contracts),

   

is to be treated as trading income accruing to the NDA or an NDA company

from the carrying on of exempt activities to the extent only that it would fall

(apart from this section) to be taken into account as trading income from a trade

consisting in the carrying on of such activities by the NDA or that company.

45

(10)   

This section and Schedule 4 are to be construed as one with the Corporation

Tax Acts.

 

 

Energy Bill [HL]
Part 1 — The Civil Nuclear Industry
Chapter 1 — Nuclear decommissioning

28

 

28      

Taxation of NDA activities chargeable under Case VI of Schedule D

(1)   

For the purposes of the Corporation Tax Acts so much of any activity of the

NDA as—

(a)   

is an activity the profits and gains from which would (apart from this

section) be chargeable to tax under Case VI of Schedule D, and

5

(b)   

is not excluded from the operation of this section by subsection (2),

   

shall be treated as an activity carried on by it as part of a trade in respect of

which it is within the charge to tax under Case I of Schedule D.

(2)   

Any activity is excluded from the operation of this section if—

(a)   

it is carried on by the NDA otherwise than in connection with

10

something mentioned in section 3(1)(a), (d) or (e) of this Act; and

(b)   

the profits and gains from it would, in the NDA’s case, be chargeable to

tax under Case VI of Schedule D by virtue of an enactment other than

just section 18 of the Income and Corporation Taxes Act 1988 (c. 1).

(3)   

All activities treated under this section as carried on by the NDA as part of a

15

trade—

(a)   

shall be treated as carried on as part of the same trade; and

(b)   

may be treated as carried on as part of another trade carried on by the

NDA.

(4)   

Subsection (3) is subject to any other provision made by or under the

20

Corporation Tax Acts that requires an activity to be treated as carried on as part

of a separate trade (with or without any other activity).

(5)   

This section is to be construed as one with the Corporation Tax Acts.

29      

Disregard for tax purposes of cancellation etc. of provisions

(1)   

This section applies where—

25

(a)   

a relevant provision is recognised in the accounts of a relevant

company in accordance with generally accepted accounting practice;

(b)   

that provision relates to decommissioning or cleaning-up which the

NDA acquires responsibility for securing by virtue of a direction under

section 3; and

30

(c)   

that responsibility includes the financial responsibility under section

21.

(2)   

In computing the profits, gains or losses of the company for the purposes of

corporation tax, no amount shall be brought into account in respect of a credit

or debit to which subsection (3) applies.

35

(3)   

This subsection applies to a credit or debit if—

(a)   

it arises on the occurrence of an event mentioned in subsection (4); and

(b)   

it relates to the effect of that event on the relevant provision or the

subject matter of the provision.

(4)   

The events referred to in subsection (3) are—

40

(a)   

the coming into force of the direction mentioned in subsection (1)(b);

and

(b)   

a transfer of property, rights or liabilities of the company to the NDA or

a subsidiary of the NDA in accordance with a nuclear transfer scheme

authorised by section 39.

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Energy Bill [HL]
Part 1 — The Civil Nuclear Industry
Chapter 1 — Nuclear decommissioning

29

 

(5)   

In this section—

   

“BNFL company” means BNFL or a wholly-owned subsidiary of BNFL;

   

“relevant company” means a BNFL company that is publicly owned;

   

“relevant provision” means a provision for liabilities or charges as defined

in paragraph 89 of Schedule 4 to the Companies Act 1985 (c. 6).

5

(6)   

This section is to be construed as one with the Corporation Tax Acts.

30      

Disregard for tax purposes of provisions recognised by NDA

(1)   

This section applies where—

(a)   

by virtue of a direction under section 3 the NDA acquires the

responsibility for securing the cleaning-up of a site falling within

10

subsection (2), or the decommissioning of an installation or facility in or

on such a site;

(b)   

that responsibility includes the financial responsibility under section

21; and

(c)   

on the coming into force of the direction mentioned in paragraph (a),

15

the NDA recognises in its accounts, in accordance with generally

accepted accounting practice, a relevant provision that relates to that

responsibility.

(2)   

A site falls within this subsection if—

(a)   

at the time the direction mentioned in subsection (1)(a) comes into force

20

there is a nuclear site licence in force in relation to the site; and

(b)   

the holder of that licence at that time is a BNFL company that is publicly

owned.

(3)   

In computing the profits, gains or losses of the NDA for the purposes of

corporation tax, no amount shall be brought into account in connection with

25

the recognition of the relevant provision in the accounts of the NDA.

(4)   

But subsection (3) shall not affect the amount (if any) to be brought into account

in computing the profits, gains or losses of the NDA in connection with an

adjustment at a time after the first recognition of the relevant provision in the

accounts of the NDA.

30

(5)   

In this section—

   

“BNFL company” means BNFL or a wholly-owned subsidiary of BNFL;

   

“relevant provision” means a provision for liabilities or charges as defined

in paragraph 89 of Schedule 4 to the Companies Act 1985.

(6)   

This section is to be construed as one with the Corporation Tax Acts.

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Nuclear Decommissioning Funding Account

31      

Establishment and maintenance of the Account

(1)   

For the purpose of ensuring transparency as respects the funding of the

carrying out of the NDA’s functions, it shall be the duty of the Secretary of

State to establish and maintain an account (to be known as the “Nuclear

40

Decommissioning Funding Account”).

(2)   

The Account, when first established, is to have an opening balance of such

amount as the Secretary of State may determine.

 

 

Energy Bill [HL]
Part 1 — The Civil Nuclear Industry
Chapter 1 — Nuclear decommissioning

30

 

(3)   

Every amount paid to the NDA by way of grant under section 22(1) must be

shown in the Account as a debit.

(4)   

The following amounts are to be shown in the Account as credits—

(a)   

every amount received by the Secretary of State in pursuance of a

requirement under section 5(2);

5

(b)   

every amount received by the NDA that is required to be paid by it to

the Secretary of State under section 22(3);

(c)   

such amount in respect of each financial year as the Secretary of State

may determine; and

(d)   

amounts representing interest, at such rate and in respect of such

10

periods as the Secretary of State may determine, on outstanding credit

balances of the Account.

(5)   

The Secretary of State—

(a)   

may make a single determination for the purposes of subsection (4)(c)

in relation to more than one financial year;

15

(b)   

must make every determination for those purposes in accordance with

the policy most recently published under subsection (6);

(c)   

must revise a determination made for those purposes if he considers it

necessary to do so in order to take account of any revision of the policy

in accordance with which it was made, or last revised; and

20

(d)   

must publish every determination made for those purposes, and every

revision of such a determination, in such manner as, in his opinion, is

most appropriate for bringing it to the attention of persons likely to be

affected by it.

(6)   

The Secretary of State—

25

(a)   

must prepare, and may from time to time revise, a statement of his

policy with respect to the determination of amounts for the purposes of

subsection (4)(c); and

(b)   

must publish that statement, and every revision of it, in such manner

as, in his opinion, is most appropriate for bringing it to the attention of

30

persons likely to be affected by it.

(7)   

The policy contained in the statement under subsection (6) must—

(a)   

set out the basis on which determinations for the purposes of

subsection (4)(c) are to be made;

(b)   

secure that amounts credited to the Account in accordance with

35

subsection (4)(c) are at least enough to prevent the credit balance of the

Account falling at any time below such level as the Secretary of State

determines to be appropriate; and

(c)   

set out the basis on which the Secretary of State’s determination for the

purposes of paragraph (b) has been made.

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(8)   

The time at which an amount is to be debited or credited to the Account in

accordance with this section is to be the time determined by the Secretary of

State.

(9)   

The consent of the Treasury is required for every determination by the

Secretary of State for the purposes of this section.

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