Part 3Income tax, corporation tax and capital gains tax

Chapter 9Miscellaneous provisions

Nuclear decommissioning

100Amendment of section 30 of the Energy Act 2004

1

Section 30 of the Energy Act 2004 (disregard for tax purposes of decommissioning provisions recognised by Nuclear Decommissioning Authority) is amended as follows.

2

In subsection (1)—

a

for paragraph (b) substitute—

b

that responsibility—

i

includes the financial responsibility under section 21, or

ii

would do so but for the fact that the amount of the financial responsibility is for the time being subject to a limit imposed by a capping agreement;

b

in paragraph (c) omit “on the coming into force of the direction mentioned in paragraph (a),”;

c

at the end of that paragraph insert

; and

d

the provision is recognised—

i

in order to reflect the coming into force of the direction mentioned in paragraph (a), or

ii

in consequence of the variation or removal of a limit on the NDA's financial responsibility under section 21 imposed by a capping agreement.

3

For subsection (3) substitute—

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—

a

the recognition made in the accounts of the NDA of—

i

the relevant provision, or

ii

an asset that, in accordance with generally accepted accounting practice, is recognised in order to reflect a limit on the NDA's financial responsibility under section 21 imposed by a capping agreement;

b

any adjustment made in those accounts (including the removal from the accounts of an asset falling within paragraph (a)(ii)) in consequence of a variation or removal of the limit mentioned in paragraph (a)(ii).

4

In subsection (4), for the words after “in connection with” substitute “ an adjustment not falling within paragraph (b) of that subsection ”.

5

In subsection (5), after the definition of “BNFL company” insert—

“capping agreement” has the same meaning as in section 29;

6

The amendments made by this section have effect in relation to accounting periods of the Nuclear Decommissioning Authority ending on or after 22nd March 2006.