Income Tax Act 2007

[F1198AExcluded activities: subsidised generation or export of electricityU.K.
This section has no associated Explanatory Notes

(1)This section supplements section 192(1)(ka).

(2)Electricity is exported if it is exported onto a distribution system or transmission system (within the meaning of section 4 of the Electricity Act 1989).

(3)The generation of electricity is “subsidised” if—

(a)a person receives a FIT subsidy in respect of the electricity generated,

(b)a renewables obligation certificate is issued in connection with the generation of the electricity,F2...

[F3(ba)a contract for difference has been entered into in connection with the generation of the electricity, or

(c)a scheme established in a territory outside the United Kingdom that—

(i)corresponds to one set out in a renewables obligation order under section 32 of the Electricity Act 1989, or

(ii)is similar to one established by virtue of regulations under Chapter 2 of Part 2 of the Energy Act 2013 (contracts for difference),

operates to incentivise the generation of the electricity.]

(4)The export of electricity is “subsidised” if a person receives a FIT subsidy in respect of the electricity exported.

F4(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6(9)For the purposes of this section—

  • F7...

  • F6...

  • [F8contract for difference” means a contract for difference within the meaning of Chapter 2 of Part 2 of the Energy Act 2013 (see section 6(2) of that Act);]

  • F6...

    (a)

    (b)

  • FIT subsidy” means—

    (a)

    a financial incentive under a scheme established by virtue of section 41 of the Energy Act 2008 (powers to amend licence conditions etc: feed-in tariffs) to encourage small-scale low-carbon generation of electricity, or

    (b)

    a financial incentive under a similar scheme established in a territory outside the United Kingdom to encourage small-scale low-carbon generation of electricity;

  • F6...

  • small-scale low-carbon generation” has the meaning given by section 41(4) of the Energy Act 2008.

  • [F9renewables obligation certificate” means a certificate issued under section 32B of the Electricity Act 1989 or Article 54 of the Energy (Northern Ireland) Order 2003.]]

Textual Amendments

F1S. 198A inserted (17.7.2012) (with effect in accordance with Sch. 7 para. 24 of the amending Act) by Finance Act 2012 (c. 14), Sch. 7 para. 14

F2Word in s. 198A(3)(b) omitted (with effect in accordance with Sch. 6 para. 5 of the amending Act) by virtue of Finance Act 2015 (c. 11), Sch. 6 para. 3(a)

F3S. 198A(3)(ba)(c) substituted for s. 198A(3)(c) (with effect in accordance with Sch. 6 para. 5 of the amending Act) by Finance Act 2015 (c. 11), Sch. 6 para. 3(a)

F4S. 198A(5)(6) omitted (with effect in accordance with Sch. 6 para. 14 of the amending Act) by virtue of Finance Act 2015 (c. 11), Sch. 6 para. 10(2)(a); S.I. 2015/1836, reg. 2(a)

F5S. 198A(7)(8) omitted (with effect in accordance with Sch. 6 para. 5 of the amending Act) by virtue of Finance Act 2015 (c. 11), Sch. 6 para. 4(1)(b)

F6Words in s. 198A(9) omitted (with effect in accordance with Sch. 6 para. 14 of the amending Act) by virtue of Finance Act 2015 (c. 11), Sch. 6 para. 10(2)(b); S.I. 2015/1836, reg. 2(a)

F7Words in s. 198A(9) omitted (with effect in accordance with Sch. 6 para. 5 of the amending Act) by virtue of Finance Act 2015 (c. 11), Sch. 6 para. 4(1)(c)

F8Words in s. 198A(9) inserted (with effect in accordance with Sch. 6 para. 5 of the amending Act) by Finance Act 2015 (c. 11), Sch. 6 para. 3(b)

F9Words in s. 198A(9) inserted (with effect in accordance with s. 56(8) of the amending Act) by Finance Act 2014 (c. 26), s. 56(3)(c)