Energy Act 2004

27 Tax exemption for NDA activities U.K.

(1) For the purposes of corporation tax—

(a) trading income arising or accruing to the NDA or an NDA company from the carrying on of exempt activities shall be disregarded in computing the total profits of the NDA or that company; and

(b) trading losses incurred by the NDA or an NDA company in the carrying on of exempt activities shall be disregarded in determining the amounts that may be [F1 —

(i) relieved under section 37, 45, 45A, 45B or 45F of the Corporation Tax Act 2010 (relief for trading losses),

(ii) surrendered under Part 5 of that Act (group relief), or

(iii) surrendered under Part 5A of that Act (group relief for carried-forward losses).]

(2) Schedule 4 (which makes further provision for the purposes of the exemption granted by this section) has effect.

(3) Activities are exempt for the purposes of this section and Schedule 4 if they—

(a) are activities carried on in connection with anything mentioned in section 3(1); and

(b) are specified for the purposes of this section in regulations made by the Treasury.

(4) In this section and Schedule 4 “NDA company” means—

(a) a company the whole of the ordinary share capital in which is owned directly or indirectly by the NDA; or

(b) a company that is a relevant site licensee.

(5) A company is a relevant site licensee for the purposes of subsection (4) if—

(a) it is not a company falling within paragraph (a) of that subsection;

(b) it holds a nuclear site licence for a site the whole or part of which is either a designated site or a site in or on which there is a designated installation or designated facility;

(c) in a case where there is in force a management contract relating to the whole or a part of the site to which that licence relates, or to an installation or facility in or on that site, the parties to the contract include either—

(i) the company in question; or

(ii) a company which owns directly or indirectly at least 90 per cent of the ordinary share capital of that company; and

(d) such further conditions that are required by regulations made by the Treasury to be satisfied have been satisfied.

(6) The concurrence of the Secretary of State is required for the making of any regulations under this section by the Treasury.

(7) A statutory instrument containing regulations under this section shall be subject to annulment in pursuance of a resolution of the House of Commons.

(8) In this section—

• “management contract” means a contract between the NDA and another person under which the other person is required to do or secure anything that the NDA is required to secure for the purpose of discharging its responsibilities;

• “owned directly or indirectly” has the same meaning as in [F2 Chapter 3 of Part 24 of the Corporation Tax Act 2010] (subsidiaries), and “owns directly or indirectly” is to be construed accordingly;

• “trading income”, in relation to the NDA or an NDA company, means (subject to subsection (9)) income which falls or (apart from this section) would fall to be included—

  (a)

  in respect of a trade [F3 carried on wholly or partly in the United Kingdom], and

  (b)

  as chargeable to tax under [F4 Chapter 2 of Part 3 of the Corporation Tax Act 2009],

  in the total profits for the purposes of corporation tax of the NDA or that company;

• “trading losses”, in relation to the NDA or an NDA company, means losses incurred in a trade [F5 carried on wholly or partly in the United Kingdom] in respect of which the NDA or that company is or (apart from this section) would be within the charge to corporation tax under [F6 Chapter 2 of Part 3 of the Corporation Tax Act 2009].

(9) For the purposes of this section income consisting in—

(a) anything giving rise to a credit that would fall to be brought into account for the purposes of [F7 Part 5 of the Corporation Tax Act 2009] (loan relationships), or

(b) a credit falling to be brought into account [F8 in accordance with Part 7 of the Corporation Tax Act 2009 (derivative contracts)],

is to be treated as trading income accruing to the NDA or an NDA company from the carrying on of exempt activities to the extent only that it would fall (apart from this section) to be taken into account as trading income from a trade consisting in the carrying on of such activities by the NDA or that company.

(10) This section and Schedule 4 are to be construed as one with the Corporation Tax Acts.

Textual Amendments

F1 Words in s. 27(1)(b) substituted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 127

F2 Words in s. 27(8) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 434(3) (with Sch. 2)

F3 Words in s. 27(8) inserted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 583(2)(a)(i) (with Sch. 2 Pts. 1, 2)

F4 Words in s. 27(8) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 583(2)(a)(ii) (with Sch. 2 Pts. 1, 2)

F5 Words in s. 27(8) inserted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 583(2)(b)(i) (with Sch. 2 Pts. 1, 2)

F6 Words in s. 27(8) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 583(2)(b)(ii) (with Sch. 2 Pts. 1, 2)

F7 Words in s. 27(9)(a) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 583(3)(a) (with Sch. 2 Pts. 1, 2)

F8 Words in s. 27(9)(b) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 583(3)(b) (with Sch. 2 Pts. 1, 2)

Commencement Information

I1 S. 27 in force at 5.10.2004 by S.I. 2004/2575, art. 2(1), Sch. 1