PART 1Income tax, corporation tax and capital gains tax
CHAPTER 4Other provisions
Investment reliefs
56Exclusion of incentivised electricity or heat generation activities
1
ITA 2007 is amended as follows.
2
In section 192 (EIS: meaning of “excluded activities”)—
a
in subsection (1), omit the “and” at the end of paragraph (ka) and after that paragraph insert—
kb
the subsidised generation of heat or subsidised production of gas or fuel, and
b
in subsection (2), omit the “and” at the end of paragraph (f) and after paragraph (g) insert
, and
h
section 198B (subsidised generation of heat and subsidised production of gas or fuel).
3
In section 198A (excluded activities: subsidised generation or export of electricity)—
a
for subsection (3) substitute—
3
The generation of electricity is “subsidised” if—
a
a person receives a FIT subsidy in respect of the electricity generated,
b
a renewables obligation certificate is issued in connection with the generation of the electricity, or
c
a scheme established in a territory outside the United Kingdom, and corresponding to that set out in a renewables obligation order under section 32 of the Electricity Act 1989, operates to incentivise the generation of the electricity.
F1b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c
in subsection (9), at the end insert—
“renewables obligation certificate” means a certificate issued under section 32B of the Electricity Act 1989 or Article 54 of the Energy (Northern Ireland) Order 2003.
4
After that section insert—
198BExcluded activities: subsidised generation of heat and subsidised production of gas or fuel
1
This section supplements section 192(1)(kb).
2
The generation of heat, or production of gas or fuel, is “subsidised” if a payment is made, or another incentive is given, under—
a
a scheme established by regulations under section 100 of the Energy Act 2008 or section 113 of the Energy Act 2011 (renewable heat incentives), or
b
a similar scheme established in a territory outside the United Kingdom,
in respect of the heat generated, or gas or fuel produced.
3
But the generation of heat, or production of gas or fuel, is not to be taken to fall within section 192(1)(kb) if Condition A or B is met.
4
Condition A is that the generation or production is carried on by—
a
a community interest company,
b
a co-operative society,
c
a community benefit society,
d
a NI industrial and provident society, or
e
an SCE formed in accordance with Council Regulation (EC) No 1435/2003 on the Statute for a European Cooperative Society.
5
Condition B is that the plant used for the generation of the heat, or production of the gas or fuel, relies wholly or mainly on anaerobic digestion.
6
Section 198A(9) (definitions) applies for the purposes of this section as for the purposes of section 198A.
5
In section 303 (VCTs: meaning of “excluded activities”)—
a
in subsection (1), omit the “and” at the end of paragraph (ka) and after that paragraph insert—
kb
the subsidised generation of heat or subsidised production of gas or fuel, and
b
in subsection (2), omit the “and” at the end of paragraph (f) and after paragraph (g) insert
, and
h
section 309B (subsidised generation of heat and subsidised production of gas and fuel).
6
In section 309A (excluded activities: subsidised generation or export of electricity)—
a
for subsection (3) substitute—
3
The generation of electricity is “subsidised” if—
a
a person receives a FIT subsidy in respect of the electricity generated,
b
a renewables obligation certificate is issued in connection with the generation of the electricity, or
c
a scheme established in a territory outside the United Kingdom, and corresponding to that set out in a renewables obligation order under section 32 of the Electricity Act 1989, operates to incentivise the generation of the electricity.
F2b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c
in subsection (9), at the end insert—
“renewables obligation certificate” means a certificate issued under section 32B of the Electricity Act 1989 or Article 54 of the Energy (Northern Ireland) Order 2003.
7
After that section insert—
309BExcluded activities: subsidised generation of heat and subsidised production of gas or fuel
1
This section supplements section 303(1)(kb).
2
The generation of heat, or production of gas or fuel, is “subsidised” if a payment is made, or another incentive is given, under—
a
a scheme established by regulations under section 100 of the Energy Act 2008 or section 113 of the Energy Act 2011 (renewable heat incentives), or
b
a similar scheme established in a territory outside the United Kingdom,
in respect of the heat generated or gas or fuel produced.
3
But the generation of heat, or production of gas or fuel, is not to be taken to fall within section 303(1)(kb) if Condition A or B is met.
4
Condition A is that the generation or production is carried on by—
a
a community interest company,
b
a co-operative society,
c
a community benefit society,
d
a NI industrial and provident society, or
e
an SCE formed in accordance with Council Regulation (EC) No 1435/2003 on the Statute for a European Cooperative Society.
5
Condition B is that the plant used for the generation of the heat, or production of the gas or fuel, relies wholly or mainly on anaerobic digestion.
6
Section 309A(9) (definitions) applies for the purposes of this section as for the purposes of section 309A.
8
The amendments made by subsections (2) to (4) have effect in relation to shares issued on or after the day on which this Act is passed.
9
The amendments made by subsections (5) to (7) have effect in relation to a relevant holding issued on or after the day on which this Act is passed.