PART 2

Plastic packaging tax

Miscellaneous

Adjustment of contracts
70
1
Subsection (2) applies where—
a
a person (S) supplies a chargeable plastic packaging component that S has produced, or that was imported on behalf of S, to another person (P) under a contract,
b
a payment falls to be made under the contract for the supply of the component, and
c
after the making of the contract—
i
plastic packaging tax becomes chargeable on the component, or
ii
there is a change in the plastic packaging tax chargeable on the component.
2
Unless the contract otherwise provides, S may adjust the amount of the payment mentioned in subsection (1)(b) so as to reflect the tax chargeable on the component.
3
Subsection (4) applies where a person (S) supplies another person (P) with a chargeable plastic packaging component under a contract.
4
Unless the contract provides otherwise, S may adjust the contract so that if P subsequently converts the component into a different chargeable plastic packaging component, P must provide S with information about the conversion.
5
For the purposes of subsections (1) and (3), it is immaterial—
a
when the contract was made;
b
whether the contract also provides for other matters.