Part 1The Civil Nuclear Industry

Chapter 1Nuclear decommissioning

Financial provisions

30Disregard for tax purposes of provisions recognised by NDA

(1)

This section applies where—

(a)

by virtue of a direction under section 3 the NDA acquires the responsibility for securing the cleaning-up of a site falling within subsection (2), or the decommissioning of an installation or facility in or on such a site;

(b)

that responsibility includes the financial responsibility under section 21; and

(c)

on the coming into force of the direction mentioned in paragraph (a), the NDA recognises in its accounts, in accordance with generally accepted accounting practice, a relevant provision that relates to that responsibility.

(2)

A site falls within this subsection if—

(a)

at the time the direction mentioned in subsection (1)(a) comes into force there is a nuclear site licence in force in relation to the site; and

(b)

the holder of that licence at that time is a BNFL company that is publicly owned.

(3)

In computing the profits, gains or losses of the NDA for the purposes of corporation tax, no amount shall be brought into account in connection with the recognition of the relevant provision in the accounts of the NDA.

(4)

But subsection (3) shall not affect the amount (if any) to be brought into account in computing the profits, gains or losses of the NDA in connection with an adjustment at a time after the first recognition of the relevant provision in the accounts of the NDA.

(5)

In this section—

“BNFL company” means BNFL or a wholly-owned subsidiary of BNFL;

“relevant provision” means a provision for liabilities or charges as defined in paragraph 89 of Schedule 4 to the Companies Act 1985.

(6)

This section is to be construed as one with the Corporation Tax Acts.