Paragraph 18 Tax equity partnerships: calculation of excess return for clawback

In section 176G (clawback of earlier qualifying flow-through tax benefits), for subsection (4) substitute—

“(4)

For the purposes of this section an investor has an “excess return” from an arrangement in an accounting period (“the current period”) if the total relevant return exceeds the amount of capital investment provided by the investor to the arrangement at its commencement.

The amount of the excess return is the amount of the excess.

(5)

In subsection (4) “the total relevant return” means the sum of—

(a)

the amounts of the qualifying flow-through tax benefits provided to the investor under the arrangement that have been excluded under section 176D(1) in the current period or any earlier accounting period,

(b)

the amounts of any distributions made to the investor under the arrangement in the current period or any earlier accounting period,

(c)

the amounts received by the investor for the sale of any part of its investment in the arrangement in the current period or any earlier accounting period, and

(d)

the amounts of any qualifying refundable tax credits and marketable transferable tax credits made available to be used by the investor under the arrangement in the current period or any earlier accounting period,

less the amount of any excess return that the investor had from the arrangement in any earlier accounting period.”