Finance (No. 2) Act 2023

Management and administration U.K.

302 General application of corporation tax administration U.K.

(1) Where a company is liable to an amount of electricity generator levy, that amount may be charged on the company as if it were an amount of corporation tax chargeable on it.

(2) For the purposes of the collection and management of the electricity generator levy, any provision made by or under an enactment that applies in relation to corporation tax is to apply in relation to the electricity generator levy.

(3) The following are examples of provision that, as a result of subsection (2), apply in relation to the electricity generator levy—

(a) provision relating to returns of information and the supply of accounts, statements and reports;

(b) provision relating to the assessing, collecting and receiving of corporation tax;

(c) provision conferring or regulating a right of appeal;

(d) provision concerning administration, penalties or interest on unpaid amounts of corporation tax;

(e) provision about the priority of amounts owed to the Commissioners for His Majesty’s Revenue and Customs in cases of insolvency under the law of any part of the United Kingdom.

(4) Accordingly—

(a) TMA 1970 is to have effect as if any reference to corporation tax included amounts of electricity generator levy that a company is chargeable to, and

(b) Paragraph 1 of Schedule 18 to FA 1998 (company tax returns, assessments and related matters) has effect as if—

(i) the “and” at the end of the paragraph beginning “section 33 of the Finance Act 2022” were omitted, and

(ii) at the end there were inserted “and,

• section 302(1) of the Finance (No. 2) Act 2023.”

(5) Subsections (1) to (4) are subject to—

(a) any other provision made by or under this Part, and

(b) any necessary modifications.

(6) The Treasury may by regulations make the following provision—

(a) provision that disapplies any provision so far as it would otherwise, as a result of subsection (2), apply in relation to the electricity generator levy;

(b) provision modifying the application of any such provision in relation to the electricity generator levy;

(c) provision about (including provision modifying) the application of any provision of the Tax Acts (that would not otherwise apply to the electricity generator levy as a result of subsection (2)) in relation to the levy.

303 Company tax returns U.K.

(1) Where a generating undertaking that is a company is a qualifying generating undertaking for a qualifying period, it must include a statement of the matters mentioned in subsection (4) in its company tax return for the first accounting period that ends on or after the day on which the qualifying period ends (and if it would not otherwise be required to make a company tax return for that period, it must make one).

(2) Where a generating undertaking that is a group is a qualifying generating undertaking for a qualifying period, the lead member in that period must include a statement of the matters mentioned in subsection (4) in its company tax return for the first accounting period that ends on or after the day on which the qualifying period ends (and if it would not otherwise be required to make a company tax return for that accounting period it must make one).

(3) But subsections (1) and (2) do not apply in relation to a qualifying generating undertaking for a qualifying period if it is reasonable to assume that the result of Step 5 in section 279(5) for that period would be significantly less than nil.

(4) The matters that must be stated are as follows—

(a) the amount of generation attributed to the generating undertaking for the qualifying period under this Part,

(b) the amount of generation receipts attributed to that undertaking for that period under section 283,

(c) the amount of any allowable costs attributed to that undertaking for that period under section 284,

(d) the amount of the undertaking’s revenue allowance for that period,

(e) in the case of a generating undertaking that is a group, any amount of electricity generator levy that a member of that group must pay as a result of an election under section 290.

(5) Where the lead member of a generating undertaking that is a group fails to comply with the obligation in subsection (2) in relation to a qualifying period, an officer of Revenue and Customs may by notice require another member of the group to make or amend a company tax return that includes the matters mentioned in subsection (4).

(6) Nothing in this section is to be taken to limit the things which must be included in a company tax return as a result of section 302(4)(b) (which has the effect of treating the electricity generator levy as tax for the purposes of company tax returns).

(7) Schedule 18 to FA 1998 (company tax returns etc.) applies in relation to a company required to make, or amend, a company tax return as a result of this section as if, in paragraph 8(1) of that Schedule (calculation of tax payable), at the end there were inserted—

• “Sixth step

  Add any amount of electricity generator levy the company is liable to in respect of that accounting period under Part 5 of the Finance (No. 2) Act 2023.”

(8) For the purposes of that modification, a company is liable to an amount of electricity generator levy in respect of an accounting period if the company tax return for that period must, as a result of this section, include a statement of the matters mentioned in subsection (4) in relation to the qualifying period to which that amount relates.

304 Requirement to provide information about payments U.K.

(1) This section applies if—

(a) an amount of electricity generator levy is chargeable on a company as if it were an amount of corporation tax, and

(b) a payment is made (whether or not by the company) that is wholly or partly in respect of that sum.

(2) The responsible company must give notice to an officer of Revenue and Customs, on or before the date the payment is made, of the amount of the payment that is in respect of that sum.

(3) The “responsible company” is—

(a) in the case of an amount of electricity generator levy to which a generating undertaking that is a company is liable, that company, or

(b) in the case of an amount of electricity generator levy to which a generating undertaking that is a group is liable, the lead member of that group.

(4) The requirement in subsection (2) is to be treated, for the purposes of Part 7 of Schedule 36 to FA 2008 (information and inspection powers: penalties), as a requirement in an information notice.

(5) This section is subject to any provision to the contrary in regulations under section 59E of TMA 1970 (further provision as to when corporation tax is due and payable).

305 Claims to shortfall amounts U.K.

(1) Part 8 of Schedule 18 to FA 1998 applies to a claim to a shortfall amount under section 299 as it applies to a claim for group relief under Part 5 of CTA 2010.

(2) That Part has effect for the purposes of a claim to a shortfall amount as if—

(a) references to “relief” were to the relief from electricity generator levy given by claiming a shortfall amount,

(b) references to “accounting period” were to “qualifying period”, except where the context otherwise requires (for example, in references to the company tax return for the accounting period),

(c) references to “company” (apart from in “company tax return”) were to “generating undertaking” (and if the context requires in the case of a generating undertaking that is a group, references were to the lead member of the group),

(d) in paragraph 68, sub-paragraphs (3) to (8) were omitted,

(e) in paragraph 69(3), in the first step, “under Part 5 or (as the case may be ) Part 5A of the Corporation Tax Act 2010” were omitted,

(f) in paragraph 70—

(i) in sub-paragraph (1), for “Requirement 1 in section 130(2), 135(2), 188CB(3) or (as the case may be) 188CC(3) of the Corporation Tax Act 2010” there were substituted “section 299(9)(a) of the Finance (No. 2) Act 2023”, and

(ii) sub-paragraphs (2), (5) and (6) were omitted,

(g) in paragraph 71—

(i) in sub-paragraph (1), for paragraph (e) there were substituted—

“(e) the overlap period to which the shortfall amount relates.”, and

(ii) sub-paragraph (1A) were omitted,

(h) paragraphs 71A, 72, 75A, 77 and 77A were omitted, and

(i) such other modifications as are necessary were made.

306 Application of Part 5A of TMA 1970 and Instalment Payments Regulations U.K.

(1) Section 59E of TMA 1970 (further provision as to when corporation tax is due and payable) has effect as if, in subsection (11) after paragraph (f) there were inserted—

“(g) to any sum chargeable on a company under section 279 of the Finance (No. 2) Act 2023 (electricity generator levy) as if it were an amount of corporation tax chargeable on the company.”

(2) Section 59F of that Act (arrangements for paying corporation tax on behalf of group members) has effect as if, in subsection (6)—

(a) the “and” at the end of paragraph (d) were omitted,

(b) after paragraph (e) there were inserted “, and

(f) to any sum chargeable on a company under section 279 of the Finance (No. 2) Act 2023 (electricity generator levy) as if it were an amount of corporation tax chargeable on the company.”

(3) The Instalment Payment Regulations have effect as if—

(a) in paragraph (2), after “company” there were inserted “, other than a company that is, or is a member of a group that is, a generating undertaking (within the meaning of Part 5 of the Finance (No. 2) Act 2023),”, and

(b) after that paragraph there were inserted—

“(2ZA) References in these Regulations to profits, in any accounting period, of a company that is, or is a member of a group that is, a generating undertaking (within the meaning of that Part), are to the greater of—

(a) the company's augmented profits within the meaning given by—

(i) in the case of an accounting period beginning before 1 April 2023, section 279G of CTA 2010, or

(ii) in the case of an accounting period beginning on or after that date, sections 18L and 18M of that Act,

(b) where the company is a generating undertaking, its exceptional generation receipts (within the meaning of that Part, and

(c) where the company is a member of a group that is a generating undertaking, the exceptional generation receipts of the undertaking.”

(4) If—

(a) electricity generator levy is chargeable on company, and

(b) under the Instalment Payment Regulations one or more instalment payments in respect of the total liability of the company for an accounting period beginning before the day on which this Act is passed are treated as becoming due and payable before the day on which this Act is passed 2023 (“pre-commencement instalments”),

any amount of electricity generator levy chargeable for that period is to be ignored for the purposes of determining the amount of any pre-commencement instalment.

(5) The first instalment in respect of that liability which is treated as becoming due and payable on or after the day on which this Act is passed is to be increased by the following amount, namely the difference between—

(a) the aggregate amount of the pre-commencement instalments determined in accordance with subsection (4), and

(b) the aggregate amount of those instalments determined ignoring that subsection.

(6) In the Instalment Payment Regulations—

(a) in regulations 6(1)(a), 7(2), 8(1)(a) and (2)(a), 9(5), 10(1), 11(1) and 13, references to those Regulations are to be read as including a reference to subsections (4) and (5) (and in regulation 7(2) “the regulation in question”, and in regulation 8(2) “that regulation”, are to be read accordingly), and

(b) in regulation 9(3), the reference to those Regulations is to be read as including a reference to those subsections.

(7) In this section “the Instalment Payment Regulations” means the Corporation Tax (Instalment Payments) Regulations 1998 (S.I. 1998/3175).