(1)For the purpose of securing that each Area Board is in broadly the same financial position on the transfer date as, on the assumptions mentioned in subsection (2) below, it would be in on that date, the Secretary of State may by order direct each Area Board to pay to the Generating Board such sums as, in relation to that Area Board, are specified in or determined by or under the order.
(2)The said assumptions are—
(a)that section 511(2) of the [1988 c. 1.] Income and Corporation Taxes Act 1988 (trades carried on by Area Boards and Generating Board treated as parts of trade of Electricity Council) and the corresponding earlier enactments had not been enacted;
(b)that at all material times corporation tax had been charged at the rate of 35 per cent.; and
(c)that any corporation tax which, on the assumptions mentioned in paragraphs (a) and (b) above, would be payable by an Area Board would be so payable before the transfer date.
Schedule 11 to this Act (which makes provision about taxation in relation to or in connection with the other provisions of this Part) shall have effect.
(1)On the transfer date all the rights and liabilities —
(a)to which the Electricity Council was entitled or subject immediately before that date under the terms of issue of British Electricity Stock; or
(b)to which the North of Scotland Hydro-Electric Board was entitled or subject immediately before that date under the terms of issue of North of Scotland Electricity Stock,
shall become by virtue of this section rights and liabilities of the Treasury.
(2)Before the transfer date there shall be paid to the Bank of England—
(a)by the Electricity Council, out of the central guarantee fund maintained under section 19 of the [1957 c. 48.] Electricity Act 1957, a sum equal to the amounts accruing in respect of unclaimed interest or redemption money on British Electricity Stock before that date; and
(b)by the North of Scotland Hydro-Electric Board, a sum equal to the amounts accruing in respect of unclaimed interest or redemption money on North of Scotland Electricity Stock before that date,
but excluding (in either case) any amounts represented by money in the hands of the Bank of England.
(3)The Bank of England shall deal with—
(a)money paid to them under subsection (2) above; and
(b)money already in their hands which represents such unclaimed interest or redemption money as is mentioned in that subsection,
as money entrusted to them for payment to holders of the Stock concerned and section 5 of the [1955 c. 6.] Miscellaneous Financial Provisions Act 1955 (which relates to unclaimed dividends etc. on Government Stock) shall apply accordingly.
(4)In this section—
“British Electricity Stock” means any stock created and issued under section 16(1) of the [1957 c. 48.] Electricity Act 1957 or under section 40 of the [1947 c. 54.] Electricity Act 1947;
“North of Scotland Electricity Stock” means any stock created and issued under section 13 of the [1943 c. 32.] Hydro-Electric Development (Scotland) Act 1943.
(1)Immediately before the transfer date—
(a)the central guarantee fund established under section 19 of the Electricity Act 1957 shall cease to exist; and
(b)the sums standing to the credit of that fund shall be divided between the Generating Board and the Area Boards in the appropriate proportions.
(2)In subsection (1) above “the appropriate proportions” means such proportions—
(a)as may be agreed between the Generating Board and the Area Boards not less than four weeks before the transfer date; or
(b)in default of such agreement, as the Secretary of State may determine.