Legalize / United Kingdom / Public General Act

Energy Act 2004

Type Public General Act

Publication 2004-07-22

Last updated 2025-09-18

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(b) two or more persons so specified, taken together, hold all the shares.

(4) Those persons are—

(a) the Treasury;

(b) a Minister of the Crown;

(d) a nominee of a person falling within paragraphs (a) to (c).

(5) A reference in this Schedule to a nuclear transfer scheme includes a reference to a modification agreement (within the meaning of Schedule 5).

(6) References in this Schedule to a person being eligible to become a participant in a pension scheme if he fulfils a condition—

(a) do not include references to his being eligible to become a participant in a scheme if a different person becomes his employer or if his employer becomes the subsidiary of a particular body corporate; but

(b) do include references, in the case of a person whose participation in the scheme is temporarily suspended (whether by reason of a secondment or loan of his service or otherwise), to fulfilment of the conditions that would bring the suspension to an end.

(7) In this paragraph “company” means a company as defined in section 1(1) of the Companies Act 2006.

Part 2 — Extensions of certain pension schemes

2

(1) The NDA may, by direction, make such modifications of a relevant pension scheme as it considers appropriate for purposes connected with extending the groups of persons who may participate in the scheme to—

(a) employees of a qualifying employer;

(b) directors or other officers of a qualifying employer who are not employees of the employer.

(2) The NDA may also, by direction, make such further modifications of a relevant pension scheme that has been modified by a direction under sub-paragraph (1) as it considers appropriate for purposes connected with conferring functions in relation to the scheme’s operation or management on the NDA.

(3) For the purposes of this paragraph a person is a qualifying employer in relation to a relevant pension scheme if—

(a) a transfer is made in accordance with a nuclear transfer scheme; and

(b) in consequence of that transfer persons falling within sub-paragraph (4) become employees, or directors or other officers, of that person.

(4) A person falls within this sub-paragraph if immediately before the transfer in question takes effect, he—

(a) is a participant in the relevant pension scheme in question;

(b) is eligible to become such a participant; or

(c) would be eligible to become such a participant had he attained an age, or fulfilled a condition, specified in that scheme.

(5) Where employees, or directors or other officers, of a qualifying employer participate in a pension scheme by virtue of a direction under this paragraph, the employer must pay to the trustee of the scheme in respect of that participation—

(a) such amounts as may be determined in accordance with the rules of the scheme; or

(b) such higher amounts as may be determined by the Secretary of State.

(6) The modifications of a pension scheme that may be made under this paragraph include modifications that make supplemental, consequential or transitional provision.

(7) The modifications of a pension scheme that may be made under this paragraph do not include modifications that would, to any extent, deprive a member of the scheme of pension rights that accrued to him under the scheme before the coming into force of the modification.

(8) Before making a modification of a pension scheme under this paragraph the NDA must consult—

(a) the trustee of the scheme; and

(b) such persons as appear to the NDA to represent the employees, or directors or other officers, likely to be affected by the modification.

(9) The consent of the Secretary of State is required for the giving of a direction under this paragraph.

(10) In this paragraph “relevant pension scheme” means—

(a) a nuclear pension scheme maintained by or on behalf of a nuclear company which is wholly-owned by the Crown;

(b) a nuclear pension scheme designated as a relevant pension scheme for the purposes of this paragraph by an order made by the Secretary of State.

Part 3 — Public sector transfers of UKAEA pension scheme members

Transfers of employment for NDA purposes

3

For the purposes of this Part of this Schedule a transfer of a person’s employment is made for NDA purposes if his employment immediately after the transfer takes effect is—

(a) employment with the NDA or a subsidiary of the NDA; or

(b) other employment the duties of which consist wholly or mainly of duties relating to matters connected with the carrying out by the NDA of its functions.

Application of UKAEA pension scheme

4

(1) A person who—

(a) in accordance with a nuclear transfer scheme, or with any transfer arrangements, becomes an employee of a relevant public sector employer, and

(b) immediately before the transfer of his employment takes effect, is a participant in a UKAEA pension scheme,

is not to cease to be a participant in that pension scheme by reason only that he has ceased to be employed by the transferor.

(2) A person falling within sub-paragraph (1)(a) but not within sub-paragraph (1)(b) who, immediately before the transfer of his employment takes effect—

(a) is eligible to become a participant in a UKAEA pension scheme, or

(b) would be eligible to become such a participant had he attained an age, or fulfilled a condition, specified in the pension scheme,

is not precluded from being, or becoming, eligible to participate in that pension scheme by reason only that he has ceased to be employed by the transferor.

(3) Sub-paragraphs (1) and (2) do not apply in relation to the transfer of a person’s employment unless—

(a) the transfer is made for NDA purposes; or

(b) the transfer is a transfer to the Civil Nuclear Police Authority.

(4) Sub-paragraphs (1) and (2) do not apply in relation to the transfer of a person’s employment that takes effect on or after the designated date unless—

(a) that person has satisfied the qualification requirement throughout the period beginning immediately before that date and ending immediately before the transfer takes effect; or

(b) the transfer is a transfer to the Civil Nuclear Police Authority.

(5) The qualification requirement is satisfied by a person for the purposes of sub-paragraph (4) at any time when—

(a) he is a participant in a UKAEA pension scheme;

(b) he is eligible to become such a participant; or

(c) he would be eligible to become such a participant had he attained an age, or fulfilled a condition, specified in the pension scheme;

and it is immaterial for the purposes of that sub-paragraph that the requirement is satisfied at different times in the period in question by reference to different paragraphs of this sub-paragraph.

(6) A UKAEA pension scheme may apply to persons who are—

(a) persons to whom it would not otherwise apply, and

(b) entitled to participate in that pension scheme by virtue of sub-paragraph (1) or (2),

as it applies to persons to whom it applies apart from this paragraph.

(7) A UKAEA pension scheme may also apply to persons who (without being persons to whom it would apply apart from this sub-paragraph) are employees of a publicly controlled company in a case in which—

(a) that company is a company to which employees have been transferred in accordance with a nuclear transfer scheme or with transfer arrangements;

(b) those transfers, if they were made in accordance with transfer arrangements, were made for NDA purposes;

(c) the employees transferred were or included employees who, immediately after the transfer, were entitled by virtue of sub-paragraph (1) or (2) to participate in a UKAEA pension scheme or to an actual or potential eligibility to participate; and

(d) the employees to whom the scheme is applied do not include persons who were employees of the company immediately before the occasion or (as the case may be) first occasion on which a transfer of the employment of a person so entitled was made in accordance with a nuclear transfer scheme or transfer arrangements.

(8) A person is not entitled to participate in a UKAEA pension scheme by virtue of any of sub-paragraphs (1) to (7) at any time after he has ceased to be able to remain, or to become, a participant in that scheme as a consequence of having agreed to become a participant in—

(a) a pension scheme maintained by the relevant public sector employer to whom his employment was transferred; or

(b) a pension scheme maintained by another person in which he is able to become a participant by reference to his employment with that employer.

(9) If a relevant public sector employer to which the employment of any person is transferred in accordance with a nuclear transfer scheme or with transfer arrangements—

(a) is a publicly controlled company at the time when the employment is transferred, but

(b) subsequently ceases to be a publicly controlled company,

then, from the time when it so ceases, no person employed by that company shall be entitled, by virtue of that employment, to participate in a UKAEA pension scheme or to be or to become eligible to participate in such a scheme.

(10) In this paragraph “transferor”, in relation to a transfer of employment, means the person by whom the transferred employee was employed immediately before the transfer takes effect.

Modification of UKAEA pension scheme

5

(1) The Secretary of State may direct the UKAEA to make such modifications of a UKAEA pension scheme for the purpose of giving effect to paragraph 4 as may be specified in the direction.

(2) He may also direct the UKAEA to make such modifications as may be so specified for either or both of the following purposes—

(a) applying provisions of a UKAEA pension scheme that apply to employees of a publicly controlled company to the case of a person falling within sub-paragraph (3) who becomes a director or other officer of that company; and

(b) modifying those provisions in their application to such a case.

(3) A person falls within this sub-paragraph if, immediately before becoming a director or other officer of the company in question, he—

(a) is a participant in a UKAEA pension scheme;

(b) is eligible to become such a participant; or

(c) would be eligible to be such a participant had he attained an age, or fulfilled a condition, specified in such a scheme.

Transfer of funds from UKAEA pension scheme

6

(1) The Secretary of State may direct the UKAEA to make such modifications of a UKAEA pension scheme as may be specified in the direction for the purpose of requiring or enabling the transfer of funds and liabilities arising under the scheme in a case falling within sub-paragraph (2).

(2) That case is where a person ceases to be a participant in the scheme in consequence of—

(a) a transfer of his employment in accordance with a nuclear transfer scheme or transfer arrangements; or

(b) a transfer, in accordance with such a scheme or such arrangements, of securities of, or voting rights in, a company by which he is employed or a company of which such a company is a subsidiary.

(3) A direction by the Secretary of State under this paragraph may prescribe—

(a) the method of determining what is to be transferred; and

(b) the assumptions to be used in making that determination.

Exercise of powers of Secretary of State

7

(1) A direction under paragraph 5 or 6 may require the UKAEA to make such supplemental, consequential and transitional provision modifying a UKAEA pension scheme as the Secretary of State considers appropriate.

(2) Before giving a direction under paragraph 5 or 6, the Secretary of State must consult—

(a) the UKAEA;

(b) the Treasury; and

(c) such persons as appear to him to represent the employees, or directors or other officers, likely to be affected by the direction.

(3) The power to give a direction under paragraph 5 affecting persons who become employees, or directors or other officers, of a publicly controlled company is not exercisable after the company has ceased to be a publicly controlled company.

(4) The provisions of paragraphs 5 and 6—

(a) are in addition to the powers of the Secretary of State to give directions to the UKAEA under paragraph 13 of this Schedule, paragraph 7 of Schedule 10 to this Act or section 3 of the Atomic Energy Authority Act 1954 (c. 32); and

(b) are to be disregarded in construing those powers.

Payments to UKAEA by relevant public sector employer

8

Where employees, or directors or other officers, of a relevant public sector employer to whom employees are transferred in accordance with a nuclear transfer scheme or transfer arrangements participate in a UKAEA pension scheme by virtue of paragraph 4 or 5, the employer must pay to the UKAEA such amounts in respect of that participation as are—

(a) agreed between the relevant public sector employer and the UKAEA; or

(b) in the absence of such agreement, determined in relation to that employer by the Secretary of State.

Part 4 — Other transfers

Persons entitled to pension protection under paragraphs 10 and 11

9

(1) For the purposes of this Part of this Schedule a person is entitled to pension protection in relation to a nuclear transfer scheme or any transfer arrangements if—

(a) sub-paragraph (2) applies to him; and

(b) he is a person falling within sub-paragraph (5).

(2) This sub-paragraph applies to a person if—

(a) in accordance with the scheme or arrangements, a transfer mentioned in sub-paragraph (3) occurs; and

(b) immediately after the time at which that transfer takes effect, the person’s employment is for NDA purposes.

(3) The transfers referred to in sub-paragraph (2) are—

(a) a transfer of the person’s employment to the UKAEA, the NDA, a publicly controlled company or a private sector employer;

(b) where his employment is not so transferred, a transfer of securities of, or voting rights in, a company by which he is employed or a company of which such a company is a subsidiary.

(4) For the purposes of sub-paragraph (2) a person’s employment is for NDA purposes if it is—

(a) employment with the NDA or a subsidiary of the NDA; or

(b) other employment the duties of which consist wholly or mainly of duties relating to matters connected with the carrying out by the NDA of its functions.

(5) A person falls within this sub-paragraph if—

(a) he is a person to whom sub-paragraph (7) applies immediately before the relevant time;

(b) he is (in a case where the relevant time is on or after the designated date) a person to whom that sub-paragraph has applied throughout the period beginning immediately before the designated date and ending immediately before the relevant time;

(d) in consequence of the transfer scheme or transfer arrangements—

(i) he is precluded from being, or becoming, eligible to participate in the nuclear pension scheme by reference to which that sub-paragraph applies to him immediately before the relevant time; or

(ii) his employer is entitled to do something the effect of which will be so to preclude him.

(6) For the purposes of sub-paragraph (5) it is immaterial that the condition in paragraph (b) of that sub-paragraph is satisfied at different times in the period by reference to different schemes or different paragraphs of sub-paragraph (7) or both.

(7) This sub-paragraph applies to a person if—

(a) he is a participant in a nuclear pension scheme;

(b) he is eligible to become such a participant; or

(c) he would be eligible to become such a participant had he attained an age, or fulfilled a condition, specified in the pension scheme.

(8) For the purposes of sub-paragraph (5) the employment condition is satisfied by a person at the relevant time if, and only if, his employment throughout the relevant period has been for NDA purposes (within the meaning of sub-paragraph (4)).

(9) For the purposes of sub-paragraph (8) the relevant period in the case of a person to whom sub-paragraph (2) applies is whichever is the shorter of—

(a) the period of six months ending with the relevant time; and

(b) the period up to the relevant time since the last occasion prior to the present case on which sub-paragraph (2) applied to him.

(10) For the purpose of a person being entitled to pension protection in relation to a nuclear transfer scheme or any transfer arrangements on the first occasion on which sub-paragraph (2) applies to him, this paragraph shall have effect with the omission of sub-paragraph (5)(c).

(11) A person is not entitled to pension protection in relation to a nuclear transfer scheme or any transfer arrangements—

(a) at a time before the designated date unless he is a public sector employee immediately before that time; or

(b) at a time on or after the designated date unless he was a public sector employee at the time immediately before that date.

(12) In this paragraph “the relevant time”, in relation to a person to whom sub-paragraph (2) applies, means—

(a) the time when, in accordance with the scheme or arrangements, the transfer of his employment to the UKAEA, the NDA, a publicly controlled company or a private sector employer takes effect; or

(b) in relation to a person whose employment is not so transferred, the time when, in accordance with the scheme or arrangements, the transfer of securities of, or voting rights in, the company by which he is employed or the company of which it is a subsidiary takes effect.

Protection on transfer in accordance with a nuclear transfer scheme

10

(1) Before the coming into force of a nuclear transfer scheme in relation to which persons are entitled to pension protection the Secretary of State must consult—

(a) the appropriate pension scheme authority;

(b) the Treasury; and

(c) such persons as appear to him to represent the persons who will be entitled to pension protection in relation to the scheme.

(2) Before the coming into force of such a transfer scheme, the Secretary of State must satisfy himself that every person entitled to pension protection in relation to the scheme will be entitled, by virtue of the employment that he will hold after the relevant time—

(a) to exercise an option of becoming a participant in an appropriate pension scheme; or

(b) in the case of a person to whom paragraph 9(7)(c) will apply immediately before the relevant time, to exercise such an option on or before attaining the age or fulfilling the condition in question.

(3) The Secretary of State’s duty under sub-paragraph (2) is owed to every person who is entitled to pension protection in relation to the transfer scheme.

(4) In the case of a person to whom paragraph 9(5)(d)(ii) applies, the references in sub-paragraph (2) to a person being entitled to exercise an option are to be construed as references to a person being entitled to exercise an option if his employer exercises the entitlement mentioned in paragraph 9(5)(d)(ii).

(5) For the purposes of sub-paragraph (2), a pension scheme is an appropriate pension scheme in relation to a person if the Secretary of State is satisfied that—

(a) taking into account the other benefits (if any) that are conferred on or made available to that person as a result of the employment that he will hold after the relevant time, and

(b) taking the benefits that are available under the provisions of that pension scheme as a whole,

the benefits that are available under those provisions are no less favourable than the benefits available under the provisions (taken as a whole) of the nuclear pension scheme in respect of which he is entitled to protection under this Part of this Schedule.

(6) In sub-paragraph (5) the reference to the scheme in respect of which a person is entitled to protection under this Part of this Schedule is a reference to—

(za) in the case of a person entitled to reformed protection in relation to the nuclear transfer scheme who falls within paragraph 9A(1)(a), the Section mentioned in paragraph 9A(1)(a);

(zb) in the case of a person entitled to reformed protection in relation to the nuclear transfer scheme who falls within paragraph 9A(1)(b), the Section mentioned in paragraph 9A(1)(b);

(a) in the case of a person who is not entitled to reformed protection in relation to the nuclear transfer scheme and who has not previously been owed a duty under either sub-paragraph (2) or paragraph 11(3), the scheme by reference to which paragraph 9(7) will apply to him immediately before the relevant time; and

(b) in other cases, the scheme by reference to which paragraph 9(7) applied to him immediately before the time that was the relevant time in relation to him on the first occasion on which he was owed such a duty;

and the reference, in relation to such a person, to the provisions of that scheme is a reference to its provisions as in force immediately before the time specified in sub-paragraph (7).

(7) That time is—

(za) in a case falling within sub-paragraph (6)(za), the relevant time in relation to the person on the first occasion on which the person was owed a duty under either sub-paragraph (2) or paragraph 11(3) after the making of amendments to the Section mentioned in paragraph 9A(1)(a) in pursuance of regulations under section 311 of the Energy Act 2023;

(zb) in a case falling within sub-paragraph (6)(zb), the relevant time in relation to the person on the first occasion on which the person was owed a duty under either sub-paragraph (2) or paragraph 11(3) after the making of amendments to the Section mentioned in paragraph 9A(1)(b) in pursuance of regulations under section 311 of the Energy Act 2023;

(a) in a case falling within sub-paragraph (6)(a), the relevant time; or

(b) in a case falling within sub-paragraph (6)(b), the relevant time in relation to the person on the first occasion on which he was owed a duty under either sub-paragraph (2) or paragraph 11(3).

(8) Where a person—

(a) is a participant in a non-nuclear pension scheme by virtue of the exercise of an option in a case in which the Secretary of State discharged his duty to that person under sub-paragraph (2) by reference to that option, or

(b) is or will become entitled to exercise an option to become a participant in such a pension scheme in a case in which the Secretary of State discharged his duty to that person under sub-paragraph (2) by reference to that entitlement,

this Part of this Schedule shall have effect in relation to that person as if that scheme were a nuclear pension scheme.

(9) Sub-paragraph (8) does not apply in relation to a person to whom paragraph 9(5)(d)(ii) applied when the Secretary of State discharged his duty to that person under sub-paragraph (2) unless the person’s employer exercises the entitlement mentioned in paragraph 9(5)(d)(ii).

(10) In this paragraph “relevant time” has the same meaning as in paragraph 9.

Protection on a transfer in accordance with transfer arrangements

11

(1) It shall be the duty of the NDA to secure that provision is made for ensuring that consultation with the persons specified in sub-paragraph (2) takes place before any transfer arrangements in relation to which persons are entitled to pension protection take effect.

(2) Those persons are—

(a) the NDA itself;

(b) the Secretary of State;

(d) persons appearing to the NDA to represent persons who will be entitled to pension protection in relation to the arrangements.

(3) Before such transfer arrangements take effect, the NDA must satisfy itself that every person entitled to pension protection in relation to the arrangements will be entitled, by virtue of the employment that he will hold after the relevant time—

(a) to exercise an option of becoming a participant in an appropriate pension scheme; or

(b) in the case of a person to whom paragraph 9(7)(c) will apply immediately before the relevant time, to exercise such an option on or before attaining the age or fulfilling the condition in question.

(4) The NDA’s duty under sub-paragraph (3) is owed to every person who is entitled to pension protection in relation to the transfer arrangements.

(5) In the case of a person to whom paragraph 9(5)(d)(ii) applies, the references in sub-paragraph (3) to a person being entitled to exercise an option are to be construed as references to a person being entitled to exercise an option if his employer exercises the entitlement mentioned in paragraph 9(5)(d)(ii).

(6) For the purposes of sub-paragraph (3), a pension scheme is an appropriate pension scheme in relation to a person if the NDA is satisfied that—

(a) taking into account the other benefits (if any) that are conferred on or made available to him as a result of the employment that he will hold after the relevant time, and

(b) taking the benefits that are available under the provisions of that pension scheme as a whole,

(7) In sub-paragraph (6) the reference to the scheme in respect of which a person is entitled to protection under this Part of this Schedule is a reference to—

(za) in the case of a person entitled to reformed protection in relation to the transfer arrangements who falls within paragraph 9A(1)(a), the Section mentioned in paragraph 9A(1)(a);

(zb) in the case of a person entitled to reformed protection in relation to the transfer arrangements who falls within paragraph 9A(1)(b), the Section mentioned in paragraph 9A(1)(b);

(a) in the case of a person who is not entitled to reformed protection in relation to the transfer arrangements and who has not previously been owed a duty under either sub-paragraph (3) or paragraph 10(2), the scheme by reference to which paragraph 9(7) will apply to him immediately before the relevant time; and

(b) in other cases, the scheme by reference to which paragraph 9(7) applied to him immediately before the time that was the relevant time in relation to him on the first occasion on which he was owed such a duty;

and the reference, in relation to such a person, to the provisions of that scheme is a reference to its provisions as in force immediately before the time specified in sub-paragraph (8).

(8) That time is—

(za) in a case falling within sub-paragraph (7)(za), the relevant time in relation to the person on the first occasion on which the person was owed a duty under either sub-paragraph (3) or paragraph 10(2) after the making of amendments to the Section mentioned in paragraph 9A(1)(a) in pursuance of regulations under section 311 of the Energy Act 2023;

(zb) in a case falling within sub-paragraph (7)(zb), the relevant time in relation to the person on the first occasion on which the person was owed a duty under either sub-paragraph (3) or paragraph 10(2) after the making of amendments to the Section mentioned in paragraph 9A(1)(b) in pursuance of regulations under section 311 of the Energy Act 2023;

(a) in a case falling within sub-paragraph (7)(a), the relevant time; or

(b) in a case falling within sub-paragraph (7)(b), the relevant time in relation to the person on the first occasion on which he was owed a duty under either sub-paragraph (3) or paragraph 10(2).

(9) Where a person—

(a) is a participant in a non-nuclear pension scheme by virtue of the exercise of an option in a case in which the NDA discharged its duty to that person under sub-paragraph (3) by reference to that option, or

(b) is or will become entitled to exercise an option to become a participant in such a pension scheme in a case in which the NDA discharged its duty to that person under sub-paragraph (3) by reference to that entitlement,

this Part of this Schedule shall have effect in relation to that person as if that scheme were a nuclear pension scheme.

(10) Sub-paragraph (9) does not apply in relation to a person to whom paragraph 9(5)(d)(ii) applied when the NDA discharged its duty to that person under sub-paragraph (3) unless the person’s employer exercises the entitlement mentioned in paragraph 9(5)(d)(ii).

(11) In this paragraph “relevant time” has the same meaning as in paragraph 9.

Modification of NDA schemes

12

(1) The Secretary of State shall have power by direction to make such modifications of an NDA pension scheme as he considers appropriate for the purpose of securing—

(a) in relation to any proposed transfer, or

(b) in relation to transfers that he considers may occur,

that the scheme will be an appropriate pension scheme for the purposes of paragraph 10 or 11.

(2) The NDA shall also have power by direction to make such modifications of an NDA pension scheme as it considers appropriate for the purpose of securing—

(a) in relation to any proposed transfer, or

(b) in relation to transfers that it considers may occur,

that the scheme will be an appropriate pension scheme for the purposes of paragraph 10 or 11.

(3) Before making a modification under this paragraph the Secretary of State must consult—

(a) the NDA; and

(b) such persons as appear to him to represent the employees likely to be affected by the modification.

(4) Before making a modification under this paragraph the NDA must—

(a) consult such persons as appear to it to represent the employees likely to be affected by the modification; and

(b) obtain the consent of the Secretary of State to the modification.

Part 5 — UKAEA pensions for employees of designated BNFL companies

13

(1) A UKAEA pension scheme may apply to employees of a designated BNFL company which is publicly controlled as it applies to persons to whom it applies apart from this paragraph.

(2) The Secretary of State may, by direction, require the UKAEA to make such modifications of a UKAEA pension scheme as the Secretary of State considers appropriate in respect of the participation in such a scheme of employees of a designated BNFL company which is publicly controlled.

(3) The Secretary of State may also, by direction, require the UKAEA to make such modifications of a UKAEA pension scheme as the Secretary of State considers appropriate for applying the provisions of such a scheme to persons—

(a) who are directors, or other officers, of a designated BNFL company which is publicly controlled; and

(b) who are not employees of that company.

(4) A direction under this paragraph may require the UKAEA to make such supplemental, consequential and transitional provision modifying a UKAEA pension scheme as the Secretary of State considers appropriate.

(5) Before giving a direction under this paragraph, the Secretary of State must consult—

(a) the UKAEA;

(b) the designated BNFL company in question;

(d) such persons as appear to him to represent the employees, or directors or other officers, likely to be affected by the direction.

(6) The power of the Secretary of State to give directions under this paragraph—

(a) is in addition to the powers of the Secretary of State to give directions to the UKAEA under paragraphs 5 and 6 of this Schedule or section 3 of the Atomic Energy Authority Act 1954 (c. 32); and

(b) is to be disregarded in construing those powers.

(7) A designated BNFL company must pay such amounts to the UKAEA in respect of the participation in a pension scheme by virtue of this paragraph of employees of the company, or of any of its directors or other officers, as are—

(a) agreed between the company and the UKAEA; or

(b) in the absence of such agreement, determined by the Secretary of State.

(8) In this paragraph “designated BNFL company” has the same meaning as in Schedule 7.

SCHEDULE 9

Part 1 — Transfers to the NDA or a subsidiary of the NDA

Trading losses: transfer of company carrying on exempt activities

1

(1) This paragraph applies for the purposes of corporation tax where—

(a) in consequence of a section 39 scheme, a company which is not an NDA company becomes an NDA company falling within section 27(4)(a); and

(b) the company carried on exempt activities before the coming into force of the scheme.

(2) Trading losses attributable to the exempt activities carried on by the company before the coming into force of the scheme shall be treated, in relation to accounting periods beginning at or after that time, as extinguished.

(3) For the purpose of determining the extent to which trading losses incurred by a company are attributable to exempt activities, such apportionments of receipts, expenses, assets and liabilities shall be made as may be just.

Trading losses: transfer of undertaking carrying on exempt activities

2

(1) This paragraph applies for the purposes of corporation tax where—

(a) a company (“the transferor company”) which is not an NDA company is carrying on a trade which consists in or includes exempt activities; and

(b) in consequence of a section 39 scheme—

(i) the transferor company ceases to carry on that trade or a part of it which consists in or includes such activities; and

(ii) the NDA or an NDA company begins to carry on that trade or that part of it.

(2) Trading losses attributable to so much of the trade or part of a trade as consists in exempt activities carried on by the transferor company before the time when the NDA or the NDA company begins to carry on the trade or that part of it shall be treated, in relation to accounting periods ending after that time, as extinguished.

(3) Sections 944 and 951 to 953 of the Corporation Tax Act 2010 (transfers of trade without a change of ownership) shall apply in relation to an unextinguished loss sustained by the transferor company in carrying on the trade or the part of it in question as if—

(a) the case were a case falling within Chapter 1 of Part 22 of that Act;

(b) the transferor company were the predecessor; and

Chargeable gains: assets to be treated as disposed without a gain or a loss

3

(1) This paragraph applies for the purposes of the 1992 Act where there is a transfer of an asset to the NDA or a subsidiary of the NDA in accordance with a section 39 scheme.

(2) The asset shall be treated as disposed of to the NDA or (as the case may be) to its subsidiary for a consideration of such amount as would secure that, on the disposal, neither a gain nor a loss accrues to the transferor.

(3) This paragraph has effect subject to paragraph 4.

(4) This paragraph does not apply in relation to a transfer to the NDA or to a subsidiary of the NDA in accordance with a nuclear transfer scheme of securities of a company, in consequence of which that company ceases to be a relevant site licensee.

(5) In this paragraph “relevant site licensee” has the same meaning as in subsection (4) of section 27 (see subsection (5)).

Chargeable gains: assets treated as acquired at nil cost

4

(1) This paragraph applies for the purposes of the 1992 Act where the NDA or a subsidiary of the NDA disposes of an asset which—

(a) was acquired by the NDA or that subsidiary in accordance with a section 39 scheme or a section 40 scheme; and

(b) is not an asset which, immediately before its transfer to the NDA or that subsidiary, was comprised in the Nuclear Liabilities Investment Portfolio.

(2) No amount shall be allowable as a deduction under section 38(1)(a) or (b) of the 1992 Act (acquisition and enhancement costs) in the computation of the gain accruing on the disposal.

(3) Accordingly, in a case where the disposal is one which under any enactment is treated as a disposal on which neither a gain nor a loss accrues to the NDA or its subsidiary, the consideration for the disposal shall be treated as equal to the amount allowable as a deduction from that consideration under section 38(1)(c) of the 1992 Act (incidental costs of disposal).

(4) This paragraph does not apply in the case of a disposal which under paragraph 29 is to be treated as a disposal on which neither a gain nor a loss accrues to the NDA or a subsidiary of the NDA.

Chargeable gains: degrouping charges

5

(1) This paragraph applies if a company (“the degrouped company”)—

(a) acquired an asset from another company at a time when both were members of the same group of companies (“the old group”); and

(b) ceases, by virtue of a transfer to the NDA or a subsidiary of the NDA in accordance with a section 39 scheme, to be a member of the old group.

(2) Section 179 of the 1992 Act (company ceasing to be member of group) is not to treat the degrouped company as having by virtue of the transfer sold and immediately reacquired the asset.

(3) Where sub-paragraph (2) has applied to an asset, section 179 of the 1992 Act is to have effect on and after the first subsequent occasion on which the degrouped company ceases to be a member of a group of companies (“the new group”) as if—

(a) the degrouped company, and

(b) the company from which it acquired the asset,

had been members of the new group at the time of acquisition.

(4) Expressions used in this paragraph and in section 179 of the 1992 Act have the same meanings in this paragraph as in that section.

Chargeable gains: disposal of debts

6

(1) This paragraph applies if—

(a) a debt owed to any person is transferred to the NDA or a subsidiary of the NDA in accordance with a section 39 scheme; and

(b) the transferor would (apart from this paragraph) be the original creditor in relation to that debt for the purposes of section 251 of the 1992 Act (disposal of debts).

(2) The 1992 Act is to have effect as if the NDA or (as the case may be) its subsidiary (and not the transferor) were the original creditor for those purposes.

Capital allowances: transfer of whole trade

7

(1) This paragraph applies where—

(a) a company (“the transferor company”) which is not a subsidiary of the NDA is carrying on a trade; and

(b) in consequence of a section 39 scheme, the transferor company ceases to carry on that trade and the NDA or a subsidiary of the NDA begins to carry it on.

(2) For the purposes of the allowances and charges provided for by the 2001 Act, the trade is not to be treated as permanently discontinued, nor a new trade as set up; but sub-paragraphs (3) and (4) of this paragraph are to apply.

(3) There are to be made to or on the NDA or (as the case may be) its subsidiary, in accordance with the 2001 Act, all such allowances and charges as would, if the transferor company had continued to carry on the trade, have fallen to be made to or on that company.

(4) The amounts of those allowances and charges are to be computed as if—

(a) the NDA or its subsidiary had been carrying on the trade since the transferor company began to do so; and

(b) everything done to or by the transferor company had been done to or by the NDA or that subsidiary;

but so that transfers in accordance with the section 39 scheme, so far as they relate to assets in use for the purposes of the trade, shall not be treated as giving rise to an allowance or charge.

Capital allowances: transfer of part of a trade

8

(1) Where—

(a) a company (“the transferor company”) which is not a subsidiary of the NDA is carrying on a trade, and

(b) in consequence of a section 39 scheme, the transferor company ceases to carry on that trade and the NDA or a subsidiary of the NDA begins to carry on activities of the trade as part of a trade carried on by the NDA or that subsidiary,

then that part of the trade carried on by the NDA or its subsidiary shall be treated for the purposes of paragraph 7 as a separate trade.

(2) Where—

(a) a company (“the transferor company”) which is not a subsidiary of the NDA is carrying on a trade, and

(b) in consequence of a section 39 scheme, the transferor company ceases to carry on a part of that trade and the NDA or a subsidiary of the NDA begins to carry on activities of that part of that trade,

then the transferor company shall be treated for the purposes of paragraph 7 and sub-paragraph (1) of this paragraph as having carried on that part of its trade as a separate trade.

(3) Where activities fall to be treated for the purposes of this paragraph as a separate trade, such apportionments of receipts, expenses, assets and liabilities shall be made for the purposes of the 2001 Act as may be just.

Capital allowances: transfer of plant or machinery

9

(1) This paragraph applies where—

(a) there is a transfer of property to the NDA or a subsidiary of the NDA in accordance with a section 39 scheme;

(b) the property is plant or machinery; and

(2) For the purposes of Part 2 of the 2001 Act (capital allowances for plant and machinery), the NDA or its subsidiary is to be treated—

(a) as having incurred capital expenditure on the provision of the plant or machinery at the time of the transfer; and

(b) as having owned the plant or machinery as a result of having incurred that expenditure.

(3) The amount of that expenditure is to be treated as being the book value of the plant or machinery.

(4) For the purposes of the application of section 61 of that Act in relation to the transferor the disposal value of the plant or machinery is to be treated as being the book value of the plant or machinery.

(5) The references in this paragraph to the book value of the plant or machinery are references to the amount which, in accordance with generally accepted accounting practice (within the meaning of the Tax Acts)—

(a) was recognised as its value in the accounts of the transferor at the time of the transfer; or

(b) should have been so recognised at that time.

(6) Expressions used in this paragraph and in Part 2 of the 2001 Act have the same meanings in this paragraph as in that Part.

Capital allowances: transfer not to be transaction between connected persons

10

For the purposes of Part 2 of the 2001 Act references in that Part to a transaction (however described) between connected persons (within the meaning of section 1122 of the Corporation Tax Act 2010) are not to include references to a transfer of anything in accordance with a section 39 scheme to the NDA or a subsidiary of the NDA.

Continuity in relation to loan relationships

11

(1) This paragraph applies if, in consequence of a section 39 scheme, the NDA or a subsidiary of the NDA replaces a person as a party to a loan relationship.

(2) Part 5 of the Corporation Tax Act 2009 is to have effect in relation to the time when the transfer takes effect and any later time as if—

(a) the NDA or its subsidiary had been a party to the loan relationship at the time when the transferor became a party to it and at all times since that time; and

(b) the loan relationship to which the NDA or its subsidiary is a party after the time when the transfer takes effect is the same loan relationship as that to which, by virtue of paragraph (a), it is treated as having been a party before that time.

(3) Expressions used in this paragraph and in Part 5 of the Corporation Tax Act 2009 have the same meanings in this paragraph as in that Part.

Continuity in relation to derivative contracts

12

(1) This paragraph applies if, in consequence of a section 39 scheme, the NDA or a subsidiary of the NDA replaces a person as a party to a derivative contract.

(2) Part 7 of the Corporation Tax Act 2009 is to have effect in relation to the time when the transfer takes effect and any later time as if—

(a) the NDA or its subsidiary had been a party to the derivative contract at the time when the transferor became a party to it and at all times since that time; and

(b) the derivative contract to which the NDA or its subsidiary is a party after the time when the transfer takes effect is the same derivative contract as that to which, by virtue of paragraph (a), it is treated as having been a party before that time.

(3) Expressions used in this paragraph and in Part 7 of the Corporation Tax Act 2009 have the same meanings in this paragraph as in that Part.

Continuity in relation to transfer of intangible assets

13

(1) Where—

(a) property is transferred in accordance with a section 39 scheme to the NDA or a subsidiary of the NDA, and

(b) the property transferred includes a chargeable intangible asset of the transferor,

the transfer of that asset is to be treated for the purposes of Schedule 29 to the Finance Act 2002 as a tax neutral transfer.

(2) Where, in the case of a transfer in accordance with a section 39 scheme of any property to the NDA or a subsidiary of the NDA—

(a) the property transferred includes an asset which is not a chargeable intangible asset of the transferor, but

(b) that asset falls to be treated after the transfer as a chargeable intangible asset of the NDA or its subsidiary,

that asset shall be treated as acquired by the NDA or its subsidiary for an amount equal to the amount of the consideration determined for the purposes of paragraph 3(2) of this Schedule.

(3) Expressions used in this paragraph and in Schedule 29 to the Finance Act 2002 have the same meanings in this paragraph as in that Schedule.

Chargeable intangible assets: degrouping charges

14

(1) This paragraph applies if a company (“the degrouped company”)—

(a) acquired an intangible fixed asset from another company at a time when both were members of the same group of companies (“the old group”); and

(b) ceases by virtue of a transfer to the NDA or a subsidiary of the NDA in accordance with a section 39 scheme to be a member of the old group.

(2) Paragraph 58 of Schedule 29 to the Finance Act 2002 (company ceasing to be member of group) is not to treat the degrouped company as having, by virtue of the transfer, sold and immediately reacquired the asset.

(3) Where sub-paragraph (2) has applied to an asset, paragraph 58 of Schedule 29 to the Finance Act 2002 (c. 23) is to have effect on and after the first subsequent occasion on which the degrouped company ceases to be a member of a group of companies (“the new group”) as if—

(a) the degrouped company, and

(b) the company from which it acquired the asset,

had been members of the new group at the time of acquisition.

(4) Expressions used in this paragraph and in paragraph 58 of Schedule 29 to the Finance Act 2002 have the same meanings in this paragraph as in that paragraph.

Computation of profits and losses in respect of transfer of trade

15

(1) This paragraph applies where, in consequence of a section 39 scheme—

(a) a BNFL company ceases to carry on a trade or a part of a trade; and

(b) an NDA group member begins to carry on the trade or that part of it.

(2) For the purpose of computing, in relation to the time when the scheme comes into force and subsequent times, the relevant trading profits or losses of the BNFL company and the NDA group member—

(a) the trade or part is to be treated as having been a separate trade at the time of its commencement and as having been carried on by the NDA group member at all times since its commencement as a separate trade; and

(b) the trade carried on by the NDA group member after the time when the section 39 scheme comes into force is to be treated as the same trade as that which it is treated, by virtue of paragraph (a), as having carried on as a separate trade before that time.

(3) This paragraph is subject to paragraph 11.

(4) In this paragraph—

“BNFL company” means BNFL or a subsidiary of BNFL;

“NDA group member” means the NDA or a subsidiary of the NDA;

“relevant trading profits and losses” means profits or losses under Part 3 of the Corporation Tax Act 2009 in respect of the trade or part of a trade in question for periods in which the trade was carried on wholly or partly in the United Kingdom.

Part 2 — Transfers relating to BNFL or the UKAEA etc.

Application of Part 2 of Schedule

16

(1) This Part of this Schedule applies to a transfer if—

(a) it is a transfer in accordance with a section 39 scheme of securities of a BNFL company or of property, rights or liabilities of a BNFL company; and

(b) the transferee is a publicly owned company which is not a subsidiary of the NDA.

(2) This Part of this Schedule also applies to a transfer if it is a transfer in accordance with a section 39 scheme to a transferee falling within sub-paragraph (3) of—

(a) property, rights or liabilities of the UKAEA;

(b) securities of a wholly-owned subsidiary of the UKAEA; or

(3) The transferee falls within this sub-paragraph if it is—

(a) a publicly owned company which is not a subsidiary of the NDA; or

(b) the UKAEA.

(4) In this paragraph “BNFL company” means BNFL or a wholly-owned subsidiary of BNFL.

Application of rules for reorganisations under same ownership

17

Where Chapter 1 of Part 22 of the Corporation Tax Act 2010 (transfers of trade without a change of ownership) applies in relation to a transfer to which this Part of this Schedule applies, that Chapter has effect in relation to the transfer with the omission of section 945.

Chargeable gains: assets to be treated as disposed without a gain or a loss

18

(1) This paragraph applies for the purposes of the 1992 Act where an asset is transferred by a transfer to which this Part of this Schedule applies.

(2) The asset shall be treated as disposed of to the transferee for a consideration of such amount as would secure that, on the disposal, neither a gain nor a loss accrues to the transferor.

Chargeable gains: degrouping charges

19

(1) This paragraph applies if a company (“the degrouped company”)—

(a) acquired an asset from another company at a time when both were members of the same group of companies (“the old group”); and

(b) ceases by virtue of a transfer to which this Part of this Schedule applies to be a member of the old group.

(2) Section 179 of the 1992 Act (company ceasing to be member of group) is not to treat the degrouped company as having by virtue of the transfer sold and immediately reacquired the asset.

(3) Where sub-paragraph (2) has applied to an asset, section 179 of the 1992 Act is to have effect on and after the first subsequent occasion on which the degrouped company ceases to be a member of a group of companies (“the new group”) as if—

(a) the degrouped company, and

(b) the company from which it acquired the asset,

had been members of the new group at the time of acquisition.

(4) Expressions used in this paragraph and in section 179 of the 1992 Act have the same meanings in this paragraph as in that section.

Chargeable gains: disposal of debts

20

(1) This paragraph applies if—

(a) a debt owed to any person is transferred by a transfer to which this Part of this Schedule applies; and

(b) the transferor would (apart from this paragraph) be the original creditor in relation to that debt for the purposes of section 251 of the 1992 Act (disposal of debts).

(2) The 1992 Act is to have effect as if the transferee (and not the transferor) were the original creditor for those purposes.

Capital allowances: transfer of plant or machinery

21

(1) This paragraph applies where—

(a) property transferred by a transfer to which this Part of this Schedule applies includes plant or machinery; and

(b) Chapter 1 of Part 22 of the Corporation Tax Act 2010 does not apply in relation to the transfer of the plant or machinery.

(2) For the purposes of Part 2 of the 2001 Act (capital allowances for plant and machinery), the transferee is to be treated—

(a) as having incurred capital expenditure on the provision of the plant or machinery at the time of the transfer; and

(b) as having owned the plant or machinery as a result of having incurred that expenditure.

(3) The amount of that expenditure is to be treated as being the book value of the plant or machinery.

(4) For the purposes of the application of section 61 of that Act in relation to the transferor the disposal value of the plant or machinery is to be treated as being the book value of the plant or machinery.

(5) The references in this paragraph to the book value of the plant or machinery are references to the amount which, in accordance with generally accepted accounting practice (within the meaning of the Tax Acts)—

(a) was recognised as its value in the accounts of the transferor at the time of the transfer; or

(b) should have been so recognised at that time.

(6) Expressions used in this paragraph and in Part 2 of the 2001 Act have the same meanings in this paragraph as in that Part.

Capital allowances: transfer not to be transaction between connected persons

22

Continuity in relation to loan relationships

23

(1) This paragraph applies if, in consequence of a transfer to which this Part of this Schedule applies, the transferee replaces a person as a party to a loan relationship.

(2) Part 5 of the Corporation Tax Act 2009 is to have effect in relation to the time when the transfer takes effect and any later time as if—

(a) the transferee had been a party to the loan relationship at the time when the transferor became a party to it and at all times since that time; and

(b) the loan relationship to which the transferee is a party after the time when the transfer takes effect is the same loan relationship as that to which, by virtue of paragraph (a), it is treated as having been a party before that time.

(3) Expressions used in this paragraph and in Part 5 of the Corporation Tax Act 2009 have the same meanings in this paragraph as in that Part.

Continuity in relation to derivative contracts

24

(1) This paragraph applies if, in consequence of a transfer to which this Part of this Schedule applies, the transferee replaces a person as a party to a derivative contract.

(2) Part 7 of the Corporation Tax Act 2009 is to have effect in relation to the time when the transfer takes effect and any later time as if—

(a) the transferee had been a party to the derivative contract at the time when the transferor became a party to it and at all times since that time; and

(b) the derivative contract to which the transferee is a party after the time when the transfer takes effect is the same derivative contract as that to which, by virtue of paragraph (a), it is treated as having been a party before that time.

(3) Expressions used in this paragraph and in Part 7 of the Corporation Tax Act 2009 have the same meanings in this paragraph as in that Part.

Continuity in relation to transfer of intangible assets

25

(1) Where—

(a) property is transferred by a transfer to which this Part of this Schedule applies, and

(b) the property transferred includes a chargeable intangible asset of the transferor,

the transfer of that asset is to be treated for the purposes of Schedule 29 to the Finance Act 2002 as a tax neutral transfer.

(2) Where, in the case of a transfer of property by a transfer to which this Part of this Schedule applies—

(a) the property transferred includes an asset which is not a chargeable intangible asset of the transferor, but

(b) that asset falls to be treated after the transfer as a chargeable intangible asset of the transferee,

that asset shall be treated as acquired by the transferee for an amount equal to the amount of the consideration determined for the purposes of paragraph 18(2) of this Schedule.

(3) Expressions used in this paragraph and in Schedule 29 to the Finance Act 2002 have the same meanings in this paragraph as in that Schedule.

Chargeable intangible assets: degrouping charges

26

(1) This paragraph applies if a company (“the degrouped company”)—

(a) acquired an intangible fixed asset from another company at a time when both were members of the same group of companies (“the old group”); and

(b) ceases by virtue of a transfer to which this Part of this Schedule applies to be a member of the old group.

(2) Paragraph 58 of Schedule 29 to the Finance Act 2002 (c. 23) (company ceasing to be member of group) is not to treat the degrouped company as having, by virtue of the transfer, sold and immediately reacquired the asset.

(3) Where sub-paragraph (2) has applied to an asset, paragraph 58 of Schedule 29 to the Finance Act 2002 is to have effect on and after the first subsequent occasion on which the degrouped company ceases to be a member of a group of companies (“the new group”) as if—

(a) the degrouped company, and

(b) the company from which it acquired the asset,

had been members of the new group at the time of acquisition.

(4) Expressions used in this paragraph and in paragraph 58 of Schedule 29 to the Finance Act 2002 have the same meanings in this paragraph as in that paragraph.

Computation of profits and losses: transfer of trade

27

(1) This paragraph applies where, in consequence of a section 39 scheme—

(a) a BNFL company ceases to carry on a trade or a part of a trade; and

(b) a publicly owned company that is not a subsidiary of the NDA (the “transferee company”) begins to carry on the trade or that part.

(2) For the purpose of computing, in relation to the time when the scheme comes into force and subsequent times, the relevant trading profits or losses of the BNFL company and the transferee company—

(a) the trade or part is to be treated as having been a separate trade at the time of its commencement and as having been carried on by the transferee company at all times since its commencement as a separate trade; and

(b) the trade carried on by the transferee company after the time when the section 39 scheme comes into force is to be treated as the same trade as that which it is treated, by virtue of paragraph (a), as having carried on as a separate trade before that time.

(3) This paragraph is subject to paragraph 23.

(4) In this paragraph—

“BNFL company” means BNFL or a wholly-owned subsidiary of BNFL; and

“relevant trading profits and losses” means profits or losses under Part 3 of the Corporation Tax Act 2009 in respect of the trade or part of a trade in question for periods in which the trade was carried on wholly or partly in the United Kingdom.

Part 3 — Transfers relating to relevant site licensees

28

(1) This paragraph applies where, in consequence of a nuclear transfer scheme, a subsidiary of the NDA becomes a relevant site licensee.

(2) For the purposes of the application of the enactments mentioned in sub-paragraph (3) to the assets of the company which has become a relevant site licensee, that company shall be treated as continuing, for so long as it is a relevant site licensee, to be a member of the group of companies of which it was a member immediately before the scheme took effect.

(3) Those enactments are—

(a) the 1992 Act;

(b) Schedule 29 to the Finance Act 2002 (c. 23);

(4) The reference in sub-paragraph (2) to the group of companies of which a company was a member is to be construed—

(a) in relation to the 1992 Act in accordance with the provisions of section 170 of that Act; and

(b) in relation to Schedule 29 to the Finance Act 2002, in accordance with Part 8 of that Schedule.

29

(1) This paragraph applies where—

(a) as a consequence of a transfer in accordance with a nuclear transfer scheme of securities of a subsidiary of the NDA, that subsidiary becomes a relevant site licensee;

(b) as a consequence of a transfer to the NDA or to a subsidiary of the NDA in accordance with such a scheme of securities of a company, that company ceases to be a relevant site licensee; or

(c) there is a transfer in accordance with such a scheme of securities of a company that is a relevant site licensee from one person to another person for purposes connected with securing that the condition in section 27(5)(c) continues to be satisfied in relation to the company.

(2) For the purposes of the 1992 Act, the securities shall be treated as disposed of to the transferee for a consideration of such amount as would secure that, on the disposal, neither a gain nor a loss accrues to the transferor.

30

In this Part of this Schedule “relevant site licensee” has the same meaning as in subsection (4) of section 27 (see subsection (5)).

Part 4 — Transfer of Nuclear Liabilities Investment Portfolio

Application of Part 4 of Schedule

31

This Part of this Schedule applies to a transfer to the Secretary of State in accordance with a nuclear transfer scheme containing provision authorised by section 42 of this Act.

Chargeable gains: assets to be treated as disposed without a gain or a loss

32

(1) This paragraph applies for the purposes of the 1992 Act where an asset is transferred by a transfer to which this Part of this Schedule applies.

(2) The asset shall be treated as disposed of to the Secretary of State for a consideration of such amount as would secure that, on the disposal, neither a gain nor a loss accrues to BNFL.

Neutral effect of transfer for loan relationships and derivative contracts

33

No credit or debit shall be required or allowed, in respect of a transfer to which this Part of this Schedule applies, to be brought into account in BNFL’s case—

(a) for the purposes of Part 5 of the Corporation Tax Act 2009 (loan relationships); or

(b) for the purposes of Part 7 of the Corporation Tax Act 2009.

Part 5 — Stamp duty etc.

34

(1) Stamp duty is not to be chargeable—

(a) on a nuclear transfer scheme, or

(b) on an instrument certified by the Secretary of State to the Commissioners of Inland Revenue as made for the purposes of such a scheme, or as made for purposes connected with such a scheme,

except to the extent that the scheme or instrument includes provision in relation to private transfers.

(2) But where, by virtue of sub-paragraph (1), stamp duty is not chargeable at all, or is chargeable only to a reduced extent, on a nuclear transfer scheme or instrument, the scheme or instrument is to be treated as duly stamped only if—

(a) in accordance with section 12 of the Stamp Act 1891 (c. 39) it has been stamped with a stamp denoting either that it is not chargeable to duty or that it has been duly stamped; or

(b) it is stamped with the duty to which it would be chargeable apart from sub-paragraph (1).

(3) An agreement which is made for the purposes of a nuclear transfer scheme or purposes connected with such a scheme is not to give rise to stamp duty reserve tax except to the extent that the agreement relates to private transfers.

(4) In this paragraph—

“instrument” has the same meaning as in the Stamp Act 1891;

“private transfer” means—a transfer of any property, right or liability to a person other than the Secretary of State, the NDA or a publicly owned company; orthe creation of an interest or right in favour of a person other than the Secretary of State, the NDA or a publicly owned company.

Part 6 — Supplemental provisions of Schedule

Groups of companies

35

References to a company in the following enactments shall apply to the NDA—

(a) sections 170 to 181 of the 1992 Act;

(b) Part 8 of Schedule 29 to the Finance Act 2002 (c. 23).

Consequential amendment

36

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation of Schedule

37

(1) In this Schedule—

“the 1992 Act” means the Taxation of Chargeable Gains Act 1992 (c. 12);

“the 2001 Act” means the Capital Allowances Act 2001 (c. 2);

“exempt activities” has the same meaning as in section 27 of this Act;

“NDA company” has the same meaning as in section 27 of this Act;

“the Nuclear Liabilities Investment Portfolio” means property and rights to which BNFL is entitled and which appear to the Board, from BNFL’s published accounts, to represent assets held by BNFL for the purpose of being able to meet costs or liabilities for which the NDA has a financial responsibility under Chapter 1 of Part 1 of this Act;

“section 39 scheme” means a nuclear transfer scheme authorised by section 39 of this Act;

“section 40 scheme” means a nuclear transfer scheme authorised by section 40 of this Act;

“transferee”, in relation to a transfer in accordance with a nuclear transfer scheme, means the person to whom the transfer is made;

“transferor”, in relation to a transfer in accordance with a nuclear transfer scheme, means the person from whom the transfer is made;

“the Taxes Act” means the Income and Corporation Taxes Act 1988 (c. 1).

(2) Before determining for the purposes of this Schedule whether an asset was comprised at a particular time in the Nuclear Liabilities Investment Portfolio, the Board must consult the Secretary of State.

(3) So far as it relates to corporation tax this Schedule is to be construed as one with the Corporation Tax Acts.

(4) So far as it relates to capital allowances this Schedule is to be construed as one with the 2001 Act.

SCHEDULE 10

Part 1 — Membership

Appointment

1

(1) The Police Authority shall consist of not fewer than seven and not more than thirteen members.

(2) The members of the Police Authority are to be appointed by the Secretary of State.

(3) The Secretary of State must appoint one of the members of the Police Authority to be its chairman.

Terms of appointment

2

(1) Subject to what follows, each member of the Police Authority is to hold and vacate office as chairman, or otherwise as a member, in accordance with the terms of his appointment.

(2) Each appointment must state the period for which it is made.

(3) That period must not exceed five years; but a person is eligible for re-appointment as chairman, or otherwise as a member of the Police Authority, (on any number of occasions) from the end of a term of office.

(4) A member of the Police Authority may at any time resign his office as the chairman or as a member of the Police Authority (or both) by giving notice to the Secretary of State.

(5) If the Secretary of State is satisfied that sub-paragraph (6) applies to the chairman or another member of the Police Authority, the Secretary of State may, by giving him notice to that effect, remove him from office.

(6) This sub-paragraph applies to a person if—

(a) he is an undischarged bankrupt or has had his estate sequestrated without being discharged or a moratorium period under a debt relief order applies in relation to him (under Part 7A of the Insolvency Act 1986);

(b) he is subject to a bankruptcy restrictions order or an interim bankruptcy restrictions order or a debt relief restrictions order or an interim debt relief restrictions order (under Schedule 4ZB of the Insolvency Act 1986);

(c) he has made an arrangement with his creditors, or has entered into a trust deed for creditors, or has made a composition contract with his creditors;

(d) he has been convicted of an offence;

(e) he has been absent, on at least three consecutive occasions and without the consent of the Police Authority, from meetings of that Authority; or

(f) he is for any other reason incapable of carrying out, or unfit to carry out, the functions of his office.

(7) Oral notice is not effective for the purposes of sub-paragraph (4) or (5).

Remuneration

3

The Police Authority may pay to each of its members such remuneration and allowances as the Secretary of State may determine.

Part 2 — Proceedings

Police Authority to regulate procedure

4

(1) The Police Authority may make such arrangements as it thinks fit for regulating its proceedings.

(2) Those arrangements may include—

(a) arrangements for quorums and the making of decisions by a majority;

(b) the establishment of committees and the regulation of their proceedings;

(3) The membership of a committee established by the Police Authority may include employees of that Authority and persons who are neither members nor employees of that Authority.

Validity etc.

5

The validity of proceedings of the Police Authority shall not be affected by—

(a) a failure by the Secretary of State to comply with paragraph 1; or

(b) any other defect in the appointment of a member of the Police Authority.

Part 3 — Employees

Employees of the Police Authority

6

(1) The Police Authority may employ such persons as it may determine.

(2) Those persons are to be employed by the Police Authority on such terms and conditions, including terms and conditions as to remuneration, as the Police Authority determines.

(3) The Police Authority may—

(a) pay to or in respect of its employees such pensions, allowances or gratuities, or

(b) with the approval of the Secretary of State, provide and maintain for them such pension schemes (whether contributory or not),

as it determines.

(4) This paragraph is subject to section 58 and any direction to the Police Authority under Schedule 13.

UKAEA pensions for employees of the Police Authority

7

(1) A pension scheme maintained by the UKAEA under paragraph 7(2)(b) of Schedule 1 to the Atomic Energy Authority Act 1954 (c. 32) (“a UKAEA pension scheme”) may apply to employees of the Police Authority as it applies to persons to whom it applies apart from this paragraph.

(2) The Secretary of State may, by direction, require the UKAEA to make such modifications of a UKAEA pension scheme as the Secretary of State considers appropriate in respect of the participation of persons in such a scheme by virtue of this paragraph.

(3) A direction under sub-paragraph (2) may also require the UKAEA to make such supplemental, consequential and transitional provision modifying a UKAEA pension scheme as the Secretary of State considers appropriate.

(4) Before giving a direction under this paragraph, the Secretary of State must consult—

(a) the UKAEA;

(b) the Police Authority;

(d) such persons as appear to him to represent the employees likely to be affected by the direction.

(5) The power of the Secretary of State to give directions under this paragraph—

(a) is in addition to the powers of the Secretary of State to give directions to the UKAEA under paragraphs 5 and 6 of Schedule 8 to this Act or section 3 of the Atomic Energy Authority Act 1954; and

(b) is to be disregarded in construing those powers.

(6) The Police Authority must pay such amounts to the UKAEA in respect of the participation of persons in a pension scheme by virtue of this paragraph as are—

(a) agreed between the Police Authority and the UKAEA; or

(b) in the absence of such agreement, determined by the Secretary of State.

(7) References in this paragraph to the modification of a UKAEA pension scheme include references to the modification of any one or more of the following—

(a) the trust deed of the scheme, if there is one;

(b) rules of the scheme; or

Part 4 — Finances

Borrowing by the Police Authority

8

(1) The Police Authority may borrow money, but only in accordance with this paragraph.

(2) The approval of the Treasury is required for borrowing by the Police Authority.

(3) The Police Authority may borrow from the Secretary of State such sums in sterling as it may require for meeting its obligations and for carrying out its functions.

(4) The Police Authority may, with the consent of the Secretary of State, borrow temporarily by way of overdraft from persons other than the Secretary of State such sums in sterling as it may require for meeting its obligations and for carrying out its functions.

(5) The Police Authority must not borrow if the effect would be—

(a) to take the aggregate amount outstanding in respect of the principal of sums it has borrowed over its borrowing limit; or

(b) to increase the amount by which the aggregate amount so outstanding exceeds that limit.

(6) The Police Authority’s borrowing limit is £30 million.

(7) The Secretary of State may by order vary the Police Authority’s borrowing limit.

(8) The approval of the Treasury is required for the making of an order under sub-paragraph (7).

(9) An order under sub-paragraph (7) is subject to the negative resolution procedure.

Guarantees for borrowing by the Police Authority

9

(1) The Secretary of State may guarantee—

(a) the repayment of the principal of any sum borrowed by the Police Authority;

(b) the payment of interest on such a sum; and

(c) the discharge of any other financial obligation of the Police Authority in connection with the borrowing of such a sum.

(2) The Secretary of State may give a guarantee under this paragraph in such manner, and on such terms, as he thinks fit.

(3) As soon as practicable after giving a guarantee under this paragraph, the Secretary of State must lay a statement of the guarantee before Parliament.

(4) If sums are paid out by the Secretary of State under a guarantee given under this paragraph, the Police Authority must pay him—

(a) such amounts in or towards the repayment to him of those sums as he may direct; and

(b) interest, at such rates as he may direct, on amounts outstanding under this sub-paragraph.

(5) Payments to the Secretary of State under sub-paragraph (4) must be made at such times, and in such manner, as he may from time to time direct.

(6) Where a sum has been paid out by the Secretary of State under a guarantee given under this paragraph, he must lay a statement relating to that sum before Parliament—

(a) as soon as practicable after the end of the financial year in which that sum is paid out; and

(b) as soon as practicable after the end of each subsequent relevant financial year.

(7) In relation to a sum paid out under a guarantee, a financial year is a relevant financial year for the purposes of sub-paragraph (6) unless—

(a) before the beginning of that year, the whole of that sum has been repaid to the Secretary of State under sub-paragraph (4); and

(b) the Police Authority is not at any time during that year subject to a liability to pay interest on amounts that became due under that sub-paragraph in respect of that sum.

(8) The consent of the Treasury is required—

(a) for the giving of a guarantee under this paragraph; and

(b) for the giving of a direction under sub-paragraph (4) or (5).

Grants and loans to the Police Authority

10

(1) The Secretary of State may—

(a) make payments by way of grant to the Police Authority; and

(b) also make payments to it by way of loan.

(2) The Secretary of State may make any grants made by him to the Police Authority subject to such conditions as he thinks fit.

(3) Loans made by the Secretary of State to the Police Authority shall be on such terms, as to repayment and interest and other matters, as the Secretary of State may determine.

Financial duties

11

(1) The Secretary of State may determine the financial duties of the Police Authority.

(2) Before determining any financial duties under this paragraph, the Secretary of State must consult the Police Authority.

(3) The approval of the Treasury is required for a determination by the Secretary of State of the Police Authority’s financial duties.

(4) A determination by the Secretary of State of the Police Authority’s financial duties may—

(a) relate to a period beginning before, on or after the date on which it is made;

(b) contain supplemental provisions; and

(5) The Secretary of State may make different determinations for different functions and activities of the Police Authority.

(6) The Secretary of State must give the Police Authority notice of every determination by him of its financial duties.

Accounts and audit

12

(1) The Police Authority must—

(a) keep proper accounts and proper accounting records; and

(b) prepare, in respect of each of its accounting years, a statement of its accounts.

(2) A statement of accounts prepared under this paragraph must give a true and fair view of—

(a) the income and expenditure of the Police Authority for the accounting year in question; and

(b) its state of affairs.

(3) Such a statement of accounts must comply with every requirement which has been notified by the Secretary of State to the Police Authority.

(4) Those requirements may include, in particular, requirements relating to—

(a) the information to be contained in the statement;

(b) the manner in which that information is to be presented;

(5) The approval of the Treasury is required for the imposition of a requirement under sub-paragraph (3).

(6) The accounts of the Police Authority relating to each of its accounting years, including the statement of accounts prepared for the year under this paragraph, must be audited by the Comptroller and Auditor General.

(7) The Comptroller and Auditor General must send a copy of his report on what he is required to audit to the Police Authority.

(8) The Police Authority must send to the Secretary of State, in respect of each of its accounting years—

(a) a copy of the accounts for that year that are required to be audited under this paragraph; and

(b) a copy of the Comptroller and Auditor General’s report on those accounts.

(9) The Secretary of State must lay a copy of whatever is sent to him under sub-paragraph (8) before Parliament.

(10) In this paragraph—

“accounting records” includes all books, papers and other records of the Police Authority relating to—the accounts which it is required to keep; ormatters dealt with in those accounts;

“accounting year”, in relation to the Police Authority, means—the Police Authority’s first accounting year; ora financial year after the end of the Police Authority’s first accounting year;

“the Police Authority’s first accounting year” means—where the Police Authority is established at the beginning of a financial year, that financial year; andin any other case, the period which begins with the day on which the Police Authority is established and ends—if no direction is given under sub-paragraph (ii), with 31st March in the financial year current on that day; andif the Secretary of State so directs, with 31st March at the end of the following financial year.

Receipts and surpluses

13

(1) The Secretary of State may give a direction requiring the Police Authority to pay to him an amount equal to—

(a) the whole or part of a sum which it has received (otherwise than from the Secretary of State); or

(b) the whole or part of any surplus which it has for a financial year.

(2) For the purposes of this paragraph, the Police Authority has a surplus for a financial year if its revenues for that year exceed the sums which it requires for carrying out its functions in that year.

(3) Before giving a direction under this paragraph, the Secretary of State must consult—

(a) the Police Authority; and

(b) the Treasury.

Destination of receipts

14

The Secretary of State must pay sums received by him under paragraph 9, 10 or 13 into the Consolidated Fund.

Part 5 — Miscellaneous

Authentication of Police Authority’s seal

15

(1) The application of the seal of the Police Authority is to be authenticated by the signature of—

(a) a member of the Police Authority; or

(b) any other person who has been authorised by it (whether generally or specifically) for the purpose.

(2) A document purporting to be—

(a) duly executed under the Police Authority’s seal, or

(b) signed on behalf of the Police Authority,

may be received in evidence and, except so far as the contrary is shown, is to be taken to be duly so executed or signed.

(3) This paragraph does not extend to Scotland.

Status

16

(1) The Police Authority is not to be regarded—

(a) as the servant or agent of the Crown; or

(b) as enjoying any status, immunity or privilege of the Crown.

(2) The Police Authority’s property is not to be regarded as property of the Crown, or as held on behalf of the Crown.

Disqualification for House of Commons

17

In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975 (c. 24) (bodies of which all members are disqualified), at the appropriate place, insert— “ The Civil Nuclear Police Authority ”.

Freedom of information

18

In Part 5 of Schedule 1 to the Freedom of Information Act 2000 (c. 36) (police bodies to be public authorities for the purposes of that Act), after paragraph 63 insert—

(63A) The Civil Nuclear Police Authority. (63B) The chief constable of the Civil Nuclear Constabulary.

SCHEDULE 11

Removal of senior officers by Police Authority

1

(1) The Police Authority may call on a senior officer, in the interests of efficiency or effectiveness, to retire or to resign.

(2) The approval of the Secretary of State is required before the Police Authority may call on a senior officer to retire or to resign.

(3) Before seeking the approval of the Secretary of State, the Police Authority must—

(a) give the senior officer a notice of its intention to call on him to retire or to resign and an explanation of its grounds for doing so;

(b) give the senior officer an opportunity of making representations, including an opportunity of making representations in person; and

(4) A senior officer who is called on to retire or to resign must retire or resign with effect from—

(a) such date as the Police Authority may specify; or

(b) such earlier date as may be agreed between him and the Police Authority.

(5) Oral notice is not effective for the purposes of sub-paragraph (3).

Power of Secretary of State to require removal of chief constable

2

(1) The Secretary of State may require the Police Authority to exercise its power under paragraph 1 to call on the chief constable to retire or to resign.

(2) Before requiring the Police Authority to exercise that power, the Secretary of State must—

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