{
  "url": "https://openlegislation.uk/finance-act-2025/schedule-4/paragraph-23",
  "json_url": "https://openlegislation.uk/finance-act-2025/schedule-4/paragraph-23.json",
  "legislation": "ukpga/2025/8",
  "legislation_title": "Finance Act 2025",
  "legislation_url": "https://openlegislation.uk/finance-act-2025",
  "path": "schedule/4/paragraph/23",
  "kind": "paragraph",
  "number": "23",
  "heading": "Tax equity partnerships",
  "text": "After section 176F insert—\n“Clawback of earlier qualifying flow-through tax benefits\n176G (1) This section applies to an investor in a tax equity partnership arrangement if—\n(a) qualifying flow-through tax benefits are excluded under section 176D(1) from the investor’s covered tax balance for an accounting period, and\n(b) the investor has an excess return from the arrangement in a later accounting period (“the later period”).\n(2) For the purpose of determining the investor’s covered tax balance for the later period, the investor’s qualifying current tax expense for that period is to be adjusted (after the steps in section 174(1) have been taken) by subtracting the clawback amount.\n(3) “The clawback amount” is determined as follows—\nStep 1\nDetermine the total amount of the qualifying flow-through tax benefits provided to the investor under the arrangement in accounting periods before the later period.\nStep 2\nSubtract from the result of Step 1 the total of any amounts subtracted under subsection (2) from the investor’s qualifying current tax expense for accounting periods before the later period.\nStep 3\nCompare the result of Step 2 with the amount of the investor’s excess return from the arrangement in the later period.\nWhichever is less is the clawback amount.\n(4) For the purposes of this section, an investor has an “excess return” from an arrangement in an accounting period—\n(a) where section 176E applies, if the result of Step 6 in section 176E(1) exceeds the amount of the flow-through tax benefits provided under the arrangement in the accounting period, in which case the amount of the excess return is the amount of the excess;\n(b) where section 176F applies and the investor did not have an excess return from the arrangement in an earlier accounting period, if the result of Step 2 in that section is less than nil, in which case the amount of the excess return is the amount by which it is less than nil;\n(c) where section 176F applies and the investor had an excess return from the arrangement in an earlier accounting period, if the result of Step 2 in that section is less than it was in the last accounting period in which the investor had an excess return from the arrangement, in which case the amount of the excess return is the amount of the difference.”",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2025/8/schedule/4/paragraph/23",
    "retrieved_at": "2026-10-29T08:47:01.939707+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}