{
  "url": "https://openlegislation.uk/finance-no-2-act-2023/section-176G",
  "json_url": "https://openlegislation.uk/finance-no-2-act-2023/section-176G.json",
  "legislation": "ukpga/2023/30",
  "legislation_title": "Finance (No. 2) Act 2023",
  "legislation_url": "https://openlegislation.uk/finance-no-2-act-2023",
  "path": "section/176G",
  "kind": "section",
  "number": "176G",
  "heading": "Clawback of earlier qualifying flow-through tax benefits",
  "text": "(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 (“the current period”) if the total relevant return exceeds the amount of capital investment provided by the investor to the arrangement at its commencement.\nThe amount of the excess return is the amount of the excess.\n(5) In subsection (4) “the total relevant return” means the sum of—\n(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,\n(b) the amounts of any distributions made to the investor under the arrangement in the current period or any earlier accounting period,\n(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\n(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,\nless the amount of any excess return that the investor had from the arrangement in any earlier accounting period.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "S. 176G inserted (in relation to accounting periods commencing on or after 31.12.2024) by Finance Act 2025 (c. 8), Sch. 4 paras. 23, 72(3)(a)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "S. 176G(4)(5) substituted for s. 176G(4) (with effect in accordance with Sch. 8 para. 53(5)-(13) of the amending Act) by Finance Act 2026 (c. 11), Sch. 8 paras. 18, 53(5)-(13)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2023/30/section/176G",
    "retrieved_at": "2026-10-29T08:52:11.242356+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."
}