Energy Act 2004

Computation of profits and losses in respect of transfer of trade

15 (1) This paragraph applies where, in consequence of a section 39 scheme—

(a) a BNFL company ceases to carry on a trade or a part of a trade; and

(b) an NDA group member begins to carry on the trade or that part of it.

(2) For the purpose of computing, in relation to the time when the scheme comes into force and subsequent times, the relevant trading profits or losses of the BNFL company and the NDA group member—

(a) the trade or part is to be treated as having been a separate trade at the time of its commencement and as having been carried on by the NDA group member at all times since its commencement as a separate trade; and

(b) the trade carried on by the NDA group member after the time when the section 39 scheme comes into force is to be treated as the same trade as that which it is treated, by virtue of paragraph (a), as having carried on as a separate trade before that time.

(3) This paragraph is subject to paragraph 11.

(4) In this paragraph—

• “BNFL company” means BNFL or a subsidiary of BNFL;

• “NDA group member” means the NDA or a subsidiary of the NDA;

• “relevant trading profits and losses” means profits or losses under Case I of Schedule D in respect of the trade or part of a trade in question.