Finance (No. 2) Act 2023

310 Interaction of electricity generator levy with corporation tax U.K.

(1) In calculating profits or losses for the purposes of corporation tax—

(a) no deduction is allowed in respect of the electricity generator levy, and

(b) no account is to be taken of any amount which is paid by a person to another person for the purposes of meeting or reimbursing the cost of the electricity generator levy.

(2) Subsection (3) applies if—

(a) two related generating undertakings (within the meaning of section 298) have an agreement between them in relation to the surrender of amounts of shortfall amounts (within the meaning of that section),

(b) such an amount is surrendered between them in accordance with section 299, and

(c) as a result of the agreement the undertaking to whom the amount is surrendered makes a payment to the other undertaking that does not exceed the amount surrendered.

(3) The payment—

(a) is not to be taken into account in determining the profits or losses of either company for corporation tax purposes, and

(b) for corporation tax purposes is not to be regarded as a distribution.