Section 30: Disregard for tax purposes of provisions recognised by NDA
134.Section 30 introduces a new section for the NDA that mirrors the effect of the new section introduced by section 29 for BNFL. The disregard in section 30 applies to the NDA so that the entries recognised in its accounts immediately on taking responsibility for BNFL’s nuclear liabilities would not be brought into account for tax purposes. As for section 29, the disregard would not apply to any subsequent change in estimated value of the expenditure to which it relates.
135.Subsections (1) and (2) set out the circumstances in which the “disregard” applies. Subsection (3) sets out the disregard itself. The disregard applies only to entries relating to nuclear sites where the nuclear site licence is held by BNFL or a wholly owned subsidiary.
136.Subsection (4) restricts the disregard to accounting entries for the first recognition of the provision in the accounts of the NDA.
137.Subsection (5) contains definitions and subsection (6) ties this section to the corporation tax legislation.