PART IIREORGANISATION OF THE INDUSTRY

Miscellaneous

89Payments for the use of tax losses

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.