http://www.legislation.gov.uk/ukpga/1997/58/section/2/2006-07-19Finance (No. 2) Act 1997An Act to grant certain duties, to alter other duties, and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with Finance.1997-07-31texttext/xmlenStatute Law Database2024-05-21Expert Participation2006-07-19 Part I The windfall tax The companies benefitting from windfalls.21For the purposes of this Part a company in existence on 2nd July 1997 was benefitting on that date from a windfall from the flotation of an undertaking whose privatisation involved the imposition of economic regulation if—athat company, or a company of which it was on that date a demerged successor, had before that date been privatised by means of a flotation;bthere had, before that flotation, been a statutory transfer of property, rights and liabilities from a public corporation to the floated company or to a company which, at the time of the flotation, was a subsidiary undertaking of the floated company; andcat the time of the flotation, the floated company was carrying on an undertaking whose privatisation involved the imposition of economic regulation.2For the purposes of this Part a company was privatised by means of a flotation if—aan offer of shares in that company was at any time made to the public in the United Kingdom;bthe shares which were the subject-matter of the offer were publicly-owned at the time of the offer;cthe offer was or included an offer of shares for disposal at a fixed price; anddshares in that company were first admitted to listing on the Official List of the Stock Exchange in pursuance of an application made in connection with the offer.3In this Part references, in relation to a company privatised by means of a flotation, to the time of the company’s flotation are references to the time when shares in the floated company were first admitted to listing on the Official List of the Stock Exchange.4For the purposes of this Part a company in existence on 2nd July 1997 (“the relevant company”) was on that date a demerged successor of a company privatised by means of a flotation if—aafter the flotation of the floated company but before 2nd July 1997, there had been a statutory transfer of property, rights and liabilities from the floated company to a company (“the transferee company”) which was a subsidiary undertaking of the floated company at the time of the transfer;bthe transferee company was not a subsidiary undertaking of the floated company on 2nd July 1997 but was, on that date, a subsidiary undertaking of the relevant company; andcbefore 2nd July 1997 shares in the relevant company had been admitted to listing on the Official List of the Stock Exchange in pursuance of an application made in connection with the transaction, or series of transactions, by virtue of which the transferee company ceased to be a subsidiary undertaking of the floated company.5For the purposes of this section a company was, at the time of its flotation, carrying on an undertaking whose privatisation involved the imposition of economic regulation if that company, or a company which at that time was a subsidiary undertaking of that company, was at that time—aa public telecommunications operator, within the meaning of the Telecommunications Act 1984;ban airport operator in relation to an airport subject to economic regulation under Part IV of the Airports Act 1986;cthe holder of an authorisation granted under section 7 of the Gas Act 1986, as originally enacted (public gas suppliers);dthe holder of an appointment under section 11 of the Water Act 1989 as the water undertaker for any area of England and Wales;ethe holder of a licence granted under section 6 of the Electricity Act 1989 or Article 10 of the Electricity (Northern Ireland) Order 1992 (licences authorising generation, transmission and supply of electricity); orfa company authorised by a licence under section 8 of the Railways Act 1993 to be the operator of a railway asset.6In subsection (5) above “airport operator” has the same meaning as in the Airports Act 1986.1984 c. 12. 1986 c. 31. 1986 c. 44. 1989 c. 15. 1989 c. 29. S.I. 1992/231 (N.I. 1). 1993 c. 43. 1986 c. 31.
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<Number>
<Strong>Part I</Strong>
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<Title> The windfall tax</Title>
<P1group RestrictStartDate="1997-07-31">
<Title> The companies benefitting from windfalls.</Title>
<P1 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/58/section/2/2006-07-19" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/58/section/2" id="section-2">
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<P1para>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/58/section/2/1/2006-07-19" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/58/section/2/1" id="section-2-1">
<Pnumber>1</Pnumber>
<P2para>
<Text>For the purposes of this Part a company in existence on 2nd July 1997 was benefitting on that date from a windfall from the flotation of an undertaking whose privatisation involved the imposition of economic regulation if—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/58/section/2/1/a/2006-07-19" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/58/section/2/1/a" id="section-2-1-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>that company, or a company of which it was on that date a demerged successor, had before that date been privatised by means of a flotation;</Text>
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<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/58/section/2/1/b/2006-07-19" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/58/section/2/1/b" id="section-2-1-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>there had, before that flotation, been a statutory transfer of property, rights and liabilities from a public corporation to the floated company or to a company which, at the time of the flotation, was a subsidiary undertaking of the floated company; and</Text>
</P3para>
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<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/58/section/2/1/c/2006-07-19" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/58/section/2/1/c" id="section-2-1-c">
<Pnumber>c</Pnumber>
<P3para>
<Text>at the time of the flotation, the floated company was carrying on an undertaking whose privatisation involved the imposition of economic regulation.</Text>
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<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/58/section/2/2/2006-07-19" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/58/section/2/2" id="section-2-2">
<Pnumber>2</Pnumber>
<P2para>
<Text>For the purposes of this Part a company was privatised by means of a flotation if—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/58/section/2/2/a/2006-07-19" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/58/section/2/2/a" id="section-2-2-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>an offer of shares in that company was at any time made to the public in the United Kingdom;</Text>
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<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/58/section/2/2/b/2006-07-19" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/58/section/2/2/b" id="section-2-2-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>the shares which were the subject-matter of the offer were publicly-owned at the time of the offer;</Text>
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<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/58/section/2/2/c/2006-07-19" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/58/section/2/2/c" id="section-2-2-c">
<Pnumber>c</Pnumber>
<P3para>
<Text>the offer was or included an offer of shares for disposal at a fixed price; and</Text>
</P3para>
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<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/58/section/2/2/d/2006-07-19" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/58/section/2/2/d" id="section-2-2-d">
<Pnumber>d</Pnumber>
<P3para>
<Text>shares in that company were first admitted to listing on the Official List of the Stock Exchange in pursuance of an application made in connection with the offer.</Text>
</P3para>
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</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/58/section/2/3/2006-07-19" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/58/section/2/3" id="section-2-3">
<Pnumber>3</Pnumber>
<P2para>
<Text>In this Part references, in relation to a company privatised by means of a flotation, to the time of the company’s flotation are references to the time when shares in the floated company were first admitted to listing on the Official List of the Stock Exchange.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/58/section/2/4/2006-07-19" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/58/section/2/4" id="section-2-4">
<Pnumber>4</Pnumber>
<P2para>
<Text>
For the purposes of this Part a company in existence on 2nd July 1997 (“
<Term id="term-the-relevant-company">the relevant company</Term>
”) was on that date a demerged successor of a company privatised by means of a flotation if—
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/58/section/2/4/a/2006-07-19" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/58/section/2/4/a" id="section-2-4-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>
after the flotation of the floated company but before 2nd July 1997, there had been a statutory transfer of property, rights and liabilities from the floated company to a company (“
<Term id="term-the-transferee-company">the transferee company</Term>
”) which was a subsidiary undertaking of the floated company at the time of the transfer;
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/58/section/2/4/b/2006-07-19" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/58/section/2/4/b" id="section-2-4-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>the transferee company was not a subsidiary undertaking of the floated company on 2nd July 1997 but was, on that date, a subsidiary undertaking of the relevant company; and</Text>
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</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/58/section/2/4/c/2006-07-19" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/58/section/2/4/c" id="section-2-4-c">
<Pnumber>c</Pnumber>
<P3para>
<Text>before 2nd July 1997 shares in the relevant company had been admitted to listing on the Official List of the Stock Exchange in pursuance of an application made in connection with the transaction, or series of transactions, by virtue of which the transferee company ceased to be a subsidiary undertaking of the floated company.</Text>
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<Pnumber>5</Pnumber>
<P2para>
<Text>For the purposes of this section a company was, at the time of its flotation, carrying on an undertaking whose privatisation involved the imposition of economic regulation if that company, or a company which at that time was a subsidiary undertaking of that company, was at that time—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/58/section/2/5/a/2006-07-19" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/58/section/2/5/a" id="section-2-5-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>
a public telecommunications operator, within the meaning of the
<CommentaryRef Ref="c4155251"/>
Telecommunications Act 1984;
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/58/section/2/5/b/2006-07-19" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/58/section/2/5/b" id="section-2-5-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>
an airport operator in relation to an airport subject to economic regulation under Part IV of the
<CommentaryRef Ref="c4155261"/>
Airports Act 1986;
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/58/section/2/5/c/2006-07-19" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/58/section/2/5/c" id="section-2-5-c">
<Pnumber>c</Pnumber>
<P3para>
<Text>
the holder of an authorisation granted under section 7 of the
<CommentaryRef Ref="c4155271"/>
Gas Act 1986, as originally enacted (public gas suppliers);
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/58/section/2/5/d/2006-07-19" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/58/section/2/5/d" id="section-2-5-d">
<Pnumber>d</Pnumber>
<P3para>
<Text>
the holder of an appointment under section 11 of the
<CommentaryRef Ref="c4155281"/>
Water Act 1989 as the water undertaker for any area of England and Wales;
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/58/section/2/5/e/2006-07-19" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/58/section/2/5/e" id="section-2-5-e">
<Pnumber>e</Pnumber>
<P3para>
<Text>
the holder of a licence granted under section 6 of the
<CommentaryRef Ref="c4155291"/>
Electricity Act 1989 or Article 10 of the
<CommentaryRef Ref="c4155301"/>
Electricity (Northern Ireland) Order 1992 (licences authorising generation, transmission and supply of electricity); or
</Text>
</P3para>
</P3>
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<Pnumber>f</Pnumber>
<P3para>
<Text>
a company authorised by a licence under section 8 of the
<CommentaryRef Ref="c4155311"/>
Railways Act 1993 to be the operator of a railway asset.
</Text>
</P3para>
</P3>
</P2para>
</P2>
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<Pnumber>6</Pnumber>
<P2para>
<Text>
In subsection (5) above “
<Term id="term-airport-operator">airport operator</Term>
” has the
<CommentaryRef Ref="c4155321"/>
same meaning as in the Airports Act 1986.
</Text>
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<Commentary id="c4155251" Type="M">
<Para>
<Text>
<Citation URI="http://www.legislation.gov.uk/id/ukpga/1984/12" id="c00001" Year="1984" Class="UnitedKingdomPublicGeneralAct" Number="12">1984 c. 12</Citation>
.
</Text>
</Para>
</Commentary>
<Commentary id="c4155261" Type="M">
<Para>
<Text>
<Citation URI="http://www.legislation.gov.uk/id/ukpga/1986/31" id="c00002" Year="1986" Class="UnitedKingdomPublicGeneralAct" Number="31">1986 c. 31</Citation>
.
</Text>
</Para>
</Commentary>
<Commentary id="c4155271" Type="M">
<Para>
<Text>
<Citation URI="http://www.legislation.gov.uk/id/ukpga/1986/44" id="c00003" Year="1986" Class="UnitedKingdomPublicGeneralAct" Number="44">1986 c. 44</Citation>
.
</Text>
</Para>
</Commentary>
<Commentary id="c4155281" Type="M">
<Para>
<Text>
<Citation URI="http://www.legislation.gov.uk/id/ukpga/1989/15" id="c00004" Year="1989" Class="UnitedKingdomPublicGeneralAct" Number="15">1989 c. 15</Citation>
.
</Text>
</Para>
</Commentary>
<Commentary id="c4155291" Type="M">
<Para>
<Text>
<Citation URI="http://www.legislation.gov.uk/id/ukpga/1989/29" id="c00005" Year="1989" Class="UnitedKingdomPublicGeneralAct" Number="29">1989 c. 29</Citation>
.
</Text>
</Para>
</Commentary>
<Commentary id="c4155301" Type="M">
<Para>
<Text>
<Citation URI="http://www.legislation.gov.uk/id/nisi/1992/231" id="c00006" Class="NorthernIrelandOrderInCouncil" Year="1992" Number="231">S.I. 1992/231 (N.I. 1)</Citation>
.
</Text>
</Para>
</Commentary>
<Commentary id="c4155311" Type="M">
<Para>
<Text>
<Citation URI="http://www.legislation.gov.uk/id/ukpga/1993/43" id="c00007" Year="1993" Class="UnitedKingdomPublicGeneralAct" Number="43">1993 c. 43</Citation>
.
</Text>
</Para>
</Commentary>
<Commentary id="c4155321" Type="M">
<Para>
<Text>
<Citation URI="http://www.legislation.gov.uk/id/ukpga/1986/31" id="c00008" Year="1986" Class="UnitedKingdomPublicGeneralAct" Number="31">1986 c. 31</Citation>
.
</Text>
</Para>
</Commentary>
</Commentaries>
</Legislation>