Paragraph 3 Application of sections 164 and 165 of CAA 2001

United Kingdom

(1)

Section 164 of CAA 2001 (election for special allowance) has effect in relation to general decommissioning expenditure that is a qualifying payment into a decommissioning fund as if—

(a)

for subsection (1A) there were substituted—

“(1A)

Condition A is that R has made a qualifying payment into a decommissioning fund in the relevant chargeable period.”

(b)

in subsection (3)—

(i)

in paragraph (ab), after “decommissioning” there were inserted “fund”, and

(ii)

paragraphs (ac) and (b) were omitted, and

(c)

subsections (5A) to (7) were omitted.

(2)

Section 165 of CAA 2001 (general decommissioning expenditure after ceasing ring fence trade) has effect in relation to general decommissioning expenditure that is a qualifying payment into a decommissioning fund as if—

(a)

for subsection (1A) there were substituted—

“(1A)

The decommissioning condition is met in relation to a notional accounting period (the “relevant period”) if the former trader has made a qualifying payment into a decommissioning fund in the relevant period.”

(b)

in subsection (2), for paragraph (b) there were substituted—

“(b)

ends with the day on which the trigger event described in section 30A of the Energy Act 2008 (change of use relief for certain installations) occurs in relation to the relevant transferred plant or machinery.”,

(c)

subsections (2A) to (2C) were omitted,

(d)

in subsection (4), in the definition of “relevant decommissioning cost”, “paragraph (a), (b) or (c) of” were omitted,

(e)

subsections (4A) to (4D) and (6) were omitted, and

(f)

in subsection (7), at the appropriate places there were inserted—

““decommissioning fund” and “qualifying payment” are to be construed in accordance with Schedule 3 to FA 2025;”;

“““relevant transferred plant or machinery” is to be construed in accordance with Schedule 3 to FA 2025;”.