# The Taxes (State Aid) (Amendments) (EU Exit) Regulations 2020 S.I. 2020/1499 · made 9 December 2020 These Regulations amend various provisions of tax legislation to ensure the effective operation of that legislation at the end of the implementation period. Made under: Finance Act 2019 (Section 90); Capital Allowances Act 2001 (Section 45DB, Section 45M, Section 360L) PDFs: Printed copy https://openlegislation.uk/taxes-state-aid-amendments-eu-exit-regulations-2020/pdf/uksi_20201499_en.pdf; UK Explanatory Memorandum https://openlegislation.uk/taxes-state-aid-amendments-eu-exit-regulations-2020/pdf/uksiem_20201499_en.pdf ## Introductory text Climate Change Levy Corporation Tax Income Tax Exiting The European Union Made 9th December 2020 Laid before the House of Commons 10th December 2020 Coming into force in accordance with regulation 1 The Treasury make the following Regulations in exercise of the power conferred by section 90(1)(a) and (b), (2) and (6) of the Finance Act 2019 and sections 45DB(12)(a), 45M(15)(a) and 360L(8) of the Capital Allowances Act 2001. Further to section 90(7)(b) of the Finance Act 2019, the Prime Minister has notified the President of the European Council, in accordance with Article 50(3) of the Treaty on European Union, of the United Kingdom’s request to extend the period in which the Treaties shall still apply to the United Kingdom. ## Part 1: Introduction ## 1 Citation and commencement These Regulations may be cited as the Taxes (State Aid) (Amendments) (EU Exit) Regulations 2020 and come into force on IP completion day. ## Part 2: Amendments to primary legislation ## 2 Finance Act 2000 (1) Paragraph 44 of Schedule 6 to the Finance Act 2000 is amended as follows. (2) In sub-paragraph (2C) at the beginning of sub-paragraph (b) insert “in a case described in sub-paragraph (2CA),”. (3) After that sub-paragraph insert— “(2CA) That case is where the result is required to be compatible with the common market by virtue of relevant separation agreement law (as defined in section 7C(3) of the European Union (Withdrawal) Act 2018).”. ## 3 Capital Allowances Act 2001 (1) The Capital Allowances Act 2001 is amended as follows. (2) In section 45DB(11) in the definition of “General Block Exemption Regulation”, after “(General block exemption Regulation)” insert “as it had effect in the United Kingdom immediately before IP completion day”. (3) In section 45M(12) in the definition of “General Block Exemption Regulation”, after “(General block exemption Regulation)” insert “as it had effect in the United Kingdom immediately before IP completion day”. (4) In section 212T(6) after “(General block exemption Regulation)” insert “as it had effect in the United Kingdom immediately before IP completion day”. (5) In section 212U(5) in the definition of “single investment project”, after “(General block exemption Regulation)” insert “as it had effect in the United Kingdom immediately before IP completion day”. (6) In section 360L(6) in the definition of “General Block Exemption Regulation”, after “(General block exemption Regulation)” insert “as it had effect in the United Kingdom immediately before IP completion day”. ## 4 Income Tax Act 2007 (1) The Income Tax Act 2007 is amended as follows. (2) In section 173A(3)(c)— (a) after “approved by the European Commission” insert “before IP completion day”; (b) for “(as those guidelines may be amended or replaced from time to time)” substitute “(as those guidelines had effect at the time of the approval)”. (3) In section 175A(8)— (a) in the definition of “entering a new product or geographical market” after “(General block exemption Regulation)” insert “as it had effect in the United Kingdom immediately before IP completion day”; (b) in the definition of “first commercial sale” for “(as those guidelines may be amended or replaced from time to time)” substitute “(as those guidelines had effect in the United Kingdom immediately before IP completion day)”. (4) In section 180B(3) after “Community Guidelines on State Aid for Rescuing and Restructuring Firms in Difficulty (2004/C244/02)” insert “as those guidelines had effect in the United Kingdom immediately before IP completion day”. (5) In section 196A after “30 December 2003” insert “, except that references in that Framework to building in the Union are to be read as including building in the United Kingdom”. (6) In section 257DE(3) after “Community Guidelines on State Aid for Rescuing and Restructuring Firms in Difficulty (2004/C244/02)” insert “as those guidelines had effect in the United Kingdom immediately before IP completion day”. (7) In section 257MNC— (a) in subsection (5)— (i) in the opening words, after “laid down” insert “in Commission Regulation (EU) No 1407/2013 (de minimis aid) as it had effect in the United Kingdom immediately before IP completion day”; (ii) omit paragraphs (a) and (b); (b) in subsection (6) for “as amended from time to time” substitute “as it had effect in the United Kingdom immediately before IP completion day”. (8) In section 280B(4)(c) for “(as those guidelines may be amended or replaced from time to time)” substitute “(as those guidelines had effect at the time of the approval)”. (9) In section 280C(9)— (a) in the definition of “entering a new product or geographical market”, after “(General block exemption Regulation)” insert “as it had effect in the United Kingdom immediately before IP completion day”; (b) in the definition of “first commercial sale” for “(as those guidelines may be amended or replaced from time to time)” substitute “(as those guidelines had effect in the United Kingdom immediately before IP completion day)”. (10) In section 286B(2) after “Community Guidelines on State Aid for Rescuing and Restructuring Firms in Difficulty (2004/C244/02)” insert “as those guidelines had effect in the United Kingdom immediately before IP completion day”. (11) In section 292A(3)(c)— (a) after “approved by the European Commission” insert “before IP completion day”; (b) for “(as those guidelines may be amended or replaced from time to time)” substitute “(as those guidelines had effect at the time of the approval)”. (12) In section 294A(8)— (a) in the definition of “entering a new product or geographical market”, after “(General block exemption Regulation)” insert “as it had effect in the United Kingdom immediately before IP completion day”; (b) in the definition of “first commercial sale” for “(as those guidelines may be amended or replaced from time to time)” substitute “(as those guidelines had effect in the United Kingdom immediately before IP completion day)”. (13) In section 307A after “30 December 2003” insert “, except that references in that Framework to building in the Union are to be read as including building in the United Kingdom”. ## 5 Corporation Tax Act 2009 (1) The Corporation Tax Act 2009 is amended as follows. (2) In section 1123(6) for “(as amended from time to time)” substitute “as it had effect in the UK immediately before IP completion day”. (3) In section 1217KC(3)— (a) for paragraph (a) substitute— “(a) was in force under Article 1 of Council Regulation (EC) No 994/98 immediately before IP completion day, and”; (b) in paragraph (b) for “makes” substitute “made”. (4) In section 1217RJ after “with the internal market” insert “(as that Regulation had effect immediately before IP completion day)”. ## 6 Finance Act 2016 (1) Section 182 of the Finance Act 2016 is amended as follows. (2) In subsection (1), in paragraph (b) of the definition of “relevant EU obligations”, for “obligations under EU law” substitute “post-withdrawal obligations”. (3) In subsection (2), at the end insert “as it has effect by virtue of the Protocol on Ireland/Northern Ireland in the EU withdrawal agreement”. (4) After subsection (2) insert— “Post-withdrawal obligations” means obligations that arise or continue by virtue of the EU withdrawal agreement (including the Protocol on Ireland/Northern Ireland).. ## Part 3: Amendments to subordinate legislation ## 7 The Climate Change Levy (General) Regulations 2001 (1) The Climate Change Levy (General) Regulations 2001 are amended as follows. (2) In regulation 51M— (a) at the beginning of paragraph (1) insert “In a case described in paragraph (3),” and (b) after paragraph (2), insert— “(3) For the purposes of paragraph (1), the case is where relevant separation agreement law applies (as defined in section 7C(3) of the European Union (Withdrawal) Act 2018).”. ## Signature James Morris Rebecca Harris Two of the Lords Commissioners for Her Majesty’s Treasury 9th December 2020 ## Explanatory note (This note is not part of the Regulations) These Regulations amend various provisions of tax legislation to ensure the effective operation of that legislation at the end of the implementation period. Part 1 provides for introductory provisions, Part 2 amends primary legislation and Part 3 amends subordinate legislation. The Regulations make amendments to certain tax legislation in connection with the State Aid (Revocations and Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1470) that have been made under section 8 of the European Union (Withdrawal) Act 2018 (c. 16)) (the “EUWA 2018”) to remedy deficiencies arising from the withdrawal of the United Kingdom from the European Union. The amendments will not affect the application of European Union State aid law under Article 10 and Annex 5 of the Protocol on Ireland/Northern Ireland in the Withdrawal Agreement with the EU on 19th October 2019, which will have effect in domestic law under section 7A of the EUWA 2018. A Tax Information and Impact Note has not been prepared for this Instrument as it contains no substantive changes to tax policy. --- Source: https://www.legislation.gov.uk/uksi/2020/1499 (the official version) Page: https://openlegislation.uk/taxes-state-aid-amendments-eu-exit-regulations-2020 Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.