Finance (No. 2) Act 2023

• (4) Subject to subsection (7), the maximum amount of a shortfall amount that may be surrendered by a generating undertaking (“C”) to another (“D”) where D is a relevant shareholder in C is the lesser of the amounts given by subsections (5) and (6).

• (5) The amount given by this subsection is the amount of the shortfall amount of C that is, on a fair and reasonable basis, referable to D’s interest in the generation attributed to C in the overlap period.

• (6) The amount given by this subsection is the amount of the exceptional generation receipts of D for the shortfall period that is, on a fair and reasonable basis, referable to D’s interest in the generation attributed to C in the overlap period.

• (7) A generating undertaking may only surrender an amount of a shortfall amount relating to an overlap period if the result of Step 5 in section 279(5) for the undertaking for the qualifying period in which the overlap period falls would not exceed nil if—

• (a) all of the steps in section 279(5) for that qualifying period were carried out, including steps that would normally be ignored because a result of nil or less has already been found,

• (b) the amount surrendered were added to the result of Step 5, and

• (c) all other amounts surrendered for overlap periods falling with that period were added to the result of that Step.

• (8) Where an amount of a shortfall amount has been surrendered to a generating undertaking, that amount is to reduce the result of Step 5 in section 279(5), but not below nil, for the qualifying period in which the overlap period to which the shortfall amount relates falls.

• (9) A surrender of an amount of a shortfall amount is effective only if—

• (a) the generating undertaking which is surrendering the amount has consented to surrender that amount to the other generating undertaking, and

• (b) the other generating undertaking has made a claim to that amount (see section 305).

Treatment of company as transparent as alternative to attribution and surrender

Election to treat certain companies as transparent

300

• (1) A company that is, or is a member of, a generating undertaking may elect that the company is to be treated as transparent while the election is in force.

Section 301 sets out the effect of a company being “treated as transparent”.

• (2) An election under subsection (1)—

• (a) must be made by notice to HMRC;

• (b) must specify the first day on which the election is to have effect, which must be no earlier than 12 months before the day on which the notice is given;

• (c) may only be made if conditions A and B are met.

• (3) Condition A is that—

• (a) the company is a qualifying joint venture that is, or is a member of, a generating undertaking, or

• (b) the company—

• (i) is a subsidiary member of a group that is a generating undertaking, and

• (ii) has at least one significant minority shareholder.

• (4) Condition B is that each shareholder of the company—

• (a) has at least a 10% interest in it,

• (b) is a company, and

• (c) has consented to the making of the election.

• (5) Where two or more members of a group are shareholders of the company, they are to be regarded as a single shareholder (and their interests aggregated) for the purposes of determining whether subsection (4)(a) is met (but each must still consent to the making of the election for condition B to be satisfied).

• (6) For the purposes of this section and section 301—

• (a) a person is a shareholder of a company if—

• (i) in the case of a company that has ordinary share capital, the person holds ordinary share capital of the company, or

• (ii) in the case of a company that does not have ordinary share capital, the person is beneficially entitled to a share of the company’s profits available for distribution to equity holders of it, and

• (b) a shareholder’s interest in a company is—

• (i) in the case of a company that has ordinary share capital, the proportion of the ordinary share capital of the company the shareholder holds, or

• (ii) in the case of a company that does not have ordinary share capital, the proportion of the company’s profits available for distribution to equity holders of it to which the shareholder is beneficially entitled.

• (7) An election under this section has effect from the date specified in accordance with subsection (2)(b) until—

• (a) revoked by the company,

• (b) revoked by HMRC, or

• (c) a person who was not a shareholder of the company at the time the election first took effect becomes a shareholder of the company.

Nothing in this subsection is to be read as preventing a subsequent election being made that commences at any time after the first election ceased to have effect.

• (8) An election may be revoked by the company by notice given to HMRC that specifies the date the election is to cease to have effect, which must be no earlier than 12 months before the day on which the notice of revocation is given.

• (9) An election may be revoked by HMRC by notice given to the company if HMRC considers that the company or its shareholders have not complied with any obligation under this Part.

• (10) A notice under subsection (9)—

• (a) must specify the date from which the revocation has effect (including a date which if specified would result in the election never having effect), and

• (b) must state the reasons for revocation, and

• (c) may be appealed by the company by notice to HMRC.

• (11) An appeal under subsection (10)(c) must be made during the period of 30 days beginning with the date on which the notice under subsection (9) was given.

Further provision about appeals is contained in Part 5 of TMA 1970 (which applies in relation to the electricity generator levy as a result of section 302).

Effect of company being transparent

301

• (1) This section applies where a company (“C”) is treated as transparent as a result of an election under section 300.

• (2) C is to be treated for the purposes of this Part as if it were a partnership.

• (3) Its shareholders are to be regarded for those purposes as its partners.

• (4) Each shareholder’s share of the profits of the partnership is equal to its interest in C.

• (5) Where C is a generating undertaking, all generation, generation receipts and allowable costs that would (ignoring this section) be attributed to C in accordance with this Part are to be treated instead as if they resulted from the operation of a generating station operated in partnership by C’s partners.

• (6) Where C is a member of a group that is a generating undertaking, the generation, generation receipts and allowable costs that—

• (a) would (ignoring this section) be attributed to the group in accordance with this Part, and

• (b) are attributable on a fair and reasonable basis to the activities of C,

are to be treated instead as if they resulted from the operation of a generating station operated in partnership by C’s partners.

• (7) Where C is, or is treated as, the only shareholder in another company (“D”), the generation, generation receipts and allowable costs that—

• (a) would (ignoring this section) be attributed, in accordance with this Part, to the group of which D is a member, and

• (b) are attributable on a fair and reasonable basis to the activities of D,

are to be treated instead as if they resulted from the operation of a generating station operated in partnership by C’s partners.

• (8) C is to be treated as the only shareholder in another company if—

• (a) the other company’s only shareholder is—

• (i) a company in which C is the only shareholder,

• (ii) a company in which the only shareholder is a company in which C is the only shareholder, and so on, or

• (b) the other company has more than one shareholder, but each of its shareholders is one of the following—

• (i) C;

• (ii) a company whose only shareholder falls within paragraph (a)(i) or (ii);

• (iii) a company that has more than one shareholder each of which is a company falling with sub-paragraph (i) or (ii) or this sub-paragraph.

• (9) Where a shareholder of a company, or a generating undertaking of which such a shareholder is a member, is liable to an amount of electricity generator levy as a result of this section—

• (a) where the company is a generating undertaking, it is jointly and severally liable to that amount (to the extent it arises as a result of this section), or

• (b) where the company is a member of a generating undertaking that is a group, that undertaking is jointly and severally liable to that amount (to the extent it arises as a result of this section).

• (10) Where—

• (a) a generating undertaking is liable to an amount of electricity generator levy as a result of subsection (9)(a) or (b), and

• (b) the qualifying period (“the chargeable period”) by reference to which that amount was determined does not wholly correspond to a qualifying period of the undertaking,

the amount is to be apportioned, on a fair and reasonable basis, between the qualifying periods of the undertaking in which the chargeable period falls.

Management and administration

General application of corporation tax administration

302

• (1) Where a company is liable to an amount of electricity generator levy, that amount may be charged on the company as if it were an amount of corporation tax chargeable on it.

• (2) For the purposes of the collection and management of the electricity generator levy, any provision made by or under an enactment that applies in relation to corporation tax is to apply in relation to the electricity generator levy.

• (3) The following are examples of provision that, as a result of subsection (2), apply in relation to the electricity generator levy—

• (a) provision relating to returns of information and the supply of accounts, statements and reports;

• (b) provision relating to the assessing, collecting and receiving of corporation tax;

• (c) provision conferring or regulating a right of appeal;

• (d) provision concerning administration, penalties or interest on unpaid amounts of corporation tax;

• (e) provision about the priority of amounts owed to the Commissioners for His Majesty’s Revenue and Customs in cases of insolvency under the law of any part of the United Kingdom.

• (4) Accordingly—

• (a) TMA 1970 is to have effect as if any reference to corporation tax included amounts of electricity generator levy that a company is chargeable to, and

• (b) Paragraph 1 of Schedule 18 to FA 1998 (company tax returns, assessments and related matters) has effect as if—

• (i) the “and” at the end of the paragraph beginning “section 33 of the Finance Act 2022” were omitted, and

• (ii) at the end there were inserted

and, - section 302(1) of the Finance (No. 2) Act 2023.

• (5) Subsections (1) to (4) are subject to—

• (a) any other provision made by or under this Part, and

• (b) any necessary modifications.

• (6) The Treasury may by regulations make the following provision—

• (a) provision that disapplies any provision so far as it would otherwise, as a result of subsection (2), apply in relation to the electricity generator levy;

• (b) provision modifying the application of any such provision in relation to the electricity generator levy;

• (c) provision about (including provision modifying) the application of any provision of the Tax Acts (that would not otherwise apply to the electricity generator levy as a result of subsection (2)) in relation to the levy.

Company tax returns

303

• (1) Where a generating undertaking that is a company is a qualifying generating undertaking for a qualifying period, it must include a statement of the matters mentioned in subsection (4) in its company tax return for the first accounting period that ends on or after the day on which the qualifying period ends (and if it would not otherwise be required to make a company tax return for that period, it must make one).

• (2) Where a generating undertaking that is a group is a qualifying generating undertaking for a qualifying period, the lead member in that period must include a statement of the matters mentioned in subsection (4) in its company tax return for the first accounting period that ends on or after the day on which the qualifying period ends (and if it would not otherwise be required to make a company tax return for that accounting period it must make one).

• (3) But subsections (1) and (2) do not apply in relation to a qualifying generating undertaking for a qualifying period if it is reasonable to assume that the result of Step 5 in section 279(5) for that period would be significantly less than nil.

• (4) The matters that must be stated are as follows—

• (a) the amount of generation attributed to the generating undertaking for the qualifying period under this Part,

• (b) the amount of generation receipts attributed to that undertaking for that period under section 283,

• (c) the amount of any allowable costs attributed to that undertaking for that period under section 284,

• (d) the amount of the undertaking’s revenue allowance for that period,

• (e) in the case of a generating undertaking that is a group, any amount of electricity generator levy that a member of that group must pay as a result of an election under section 290.

• (5) Where the lead member of a generating undertaking that is a group fails to comply with the obligation in subsection (2) in relation to a qualifying period, an officer of Revenue and Customs may by notice require another member of the group to make or amend a company tax return that includes the matters mentioned in subsection (4).

• (6) Nothing in this section is to be taken to limit the things which must be included in a company tax return as a result of section 302(4)(b) (which has the effect of treating the electricity generator levy as tax for the purposes of company tax returns).

• (7) Schedule 18 to FA 1998 (company tax returns etc.) applies in relation to a company required to make, or amend, a company tax return as a result of this section as if, in paragraph 8(1) of that Schedule (calculation of tax payable), at the end there were inserted—

• Sixth step Add any amount of electricity generator levy the company is liable to in respect of that accounting period under Part 5 of the Finance (No. 2) Act 2023.

• (8) For the purposes of that modification, a company is liable to an amount of electricity generator levy in respect of an accounting period if the company tax return for that period must, as a result of this section, include a statement of the matters mentioned in subsection (4) in relation to the qualifying period to which that amount relates.

Requirement to provide information about payments

304

• (1) This section applies if—

• (a) an amount of electricity generator levy is chargeable on a company as if it were an amount of corporation tax, and

• (b) a payment is made (whether or not by the company) that is wholly or partly in respect of that sum.

• (2) The responsible company must give notice to an officer of Revenue and Customs, on or before the date the payment is made, of the amount of the payment that is in respect of that sum.

• (3) The “responsible company” is—

• (a) in the case of an amount of electricity generator levy to which a generating undertaking that is a company is liable, that company, or

• (b) in the case of an amount of electricity generator levy to which a generating undertaking that is a group is liable, the lead member of that group.

• (4) The requirement in subsection (2) is to be treated, for the purposes of Part 7 of Schedule 36 to FA 2008 (information and inspection powers: penalties), as a requirement in an information notice.

• (5) This section is subject to any provision to the contrary in regulations under section 59E of TMA 1970 (further provision as to when corporation tax is due and payable).

Claims to shortfall amounts

305

• (1) Part 8 of Schedule 18 to FA 1998 applies to a claim to a shortfall amount under section 299 as it applies to a claim for group relief under Part 5 of CTA 2010.

• (2) That Part has effect for the purposes of a claim to a shortfall amount as if—

• (a) references to “relief” were to the relief from electricity generator levy given by claiming a shortfall amount,

• (b) references to “accounting period” were to “qualifying period”, except where the context otherwise requires (for example, in references to the company tax return for the accounting period),

• (c) references to “company” (apart from in “company tax return”) were to “generating undertaking” (and if the context requires in the case of a generating undertaking that is a group, references were to the lead member of the group),

• (d) in paragraph 68, sub-paragraphs (3) to (8) were omitted,

• (e) in paragraph 69(3), in the first step, “under Part 5 or (as the case may be ) Part 5A of the Corporation Tax Act 2010” were omitted,

• (f) in paragraph 70—

• (i) in sub-paragraph (1), for “Requirement 1 in section 130(2), 135(2), 188CB(3) or (as the case may be) 188CC(3) of the Corporation Tax Act 2010” there were substituted “section 299(9)(a) of the Finance (No. 2) Act 2023”, and

• (ii) sub-paragraphs (2), (5) and (6) were omitted,

• (g) in paragraph 71—

• (i) in sub-paragraph (1), for paragraph (e) there were substituted—

(e) the overlap period to which the shortfall amount relates.

, and

• (ii) sub-paragraph (1A) were omitted,

• (h) paragraphs 71A, 72, 75A, 77 and 77A were omitted, and

• (i) such other modifications as are necessary were made.

Application of Part 5A of TMA 1970 and Instalment Payments Regulations

306

• (1) Section 59E of TMA 1970 (further provision as to when corporation tax is due and payable) has effect as if, in subsection (11) after paragraph (f) there were inserted—

(g) to any sum chargeable on a company under section 279 of the Finance (No. 2) Act 2023 (electricity generator levy) as if it were an amount of corporation tax chargeable on the company.

• (2) Section 59F of that Act (arrangements for paying corporation tax on behalf of group members) has effect as if, in subsection (6)—

• (a) the “and” at the end of paragraph (d) were omitted,

• (b) after paragraph (e) there were inserted

, and (f) to any sum chargeable on a company under section 279 of the Finance (No. 2) Act 2023 (electricity generator levy) as if it were an amount of corporation tax chargeable on the company.

• (3) The Instalment Payment Regulations have effect as if—

• (a) in paragraph (2), after “company” there were inserted “, other than a company that is, or is a member of a group that is, a generating undertaking (within the meaning of Part 5 of the Finance (No. 2) Act 2023),”, and

• (b) after that paragraph there were inserted—

(2ZA) References in these Regulations to profits, in any accounting period, of a company that is, or is a member of a group that is, a generating undertaking (within the meaning of that Part), are to the greater of— (a) the company's augmented profits within the meaning given by— (i) in the case of an accounting period beginning before 1 April 2023, section 279G of CTA 2010, or (ii) in the case of an accounting period beginning on or after that date, sections 18L and 18M of that Act, (b) where the company is a generating undertaking, its exceptional generation receipts (within the meaning of that Part, and (c) where the company is a member of a group that is a generating undertaking, the exceptional generation receipts of the undertaking.

• (4) If—

• (a) electricity generator levy is chargeable on company, and

• (b) under the Instalment Payment Regulations one or more instalment payments in respect of the total liability of the company for an accounting period beginning before the day on which this Act is passed are treated as becoming due and payable before the day on which this Act is passed 2023 (“pre-commencement instalments”),

any amount of electricity generator levy chargeable for that period is to be ignored for the purposes of determining the amount of any pre-commencement instalment.

• (5) The first instalment in respect of that liability which is treated as becoming due and payable on or after the day on which this Act is passed is to be increased by the following amount, namely the difference between—

• (a) the aggregate amount of the pre-commencement instalments determined in accordance with subsection (4), and

• (b) the aggregate amount of those instalments determined ignoring that subsection.

• (6) In the Instalment Payment Regulations—

• (a) in regulations 6(1)(a), 7(2), 8(1)(a) and (2)(a), 9(5), 10(1), 11(1) and 13, references to those Regulations are to be read as including a reference to subsections (4) and (5) (and in regulation 7(2) “the regulation in question”, and in regulation 8(2) “that regulation”, are to be read accordingly), and

• (b) in regulation 9(3), the reference to those Regulations is to be read as including a reference to those subsections.

• (7) In this section “the Instalment Payment Regulations” means the Corporation Tax (Instalment Payments) Regulations 1998 (S.I. 1998/3175).

Supplemental

Application of Part 5 of CTA 2010 for the purposes of determining interests

307

• (1) Chapter 6 of Part 5 of CTA 2010 (group relief: equity holders and profits or assets available for distribution) applies for the purposes of determining the interests of persons in companies under the following provisions (each a “relevant provision”)—

• (a) section 287(4);

• (b) section 290(5);

• (c) section 292(1)(b)(ii), (3)(b) and (4)(b);

• (d) section 293(7)(b);

• (e) section 294(5)(b);

• (f) section 296(7)(b).

• (2) For those purposes that Part has effect as if—

• (a) references to section 151(4)(a) and (b) of that Act were references to the relevant provision,

• (b) in section 158 of that Act after subsection (2) there were inserted—

(2A) But for those purposes a person carrying on a business of banking is not treated as a loan creditor of a company in respect of any loan capital or debt issued or incurred by the company for money lent by the person to the company in the ordinary course of that business.

,

• (c) sections 171(1)(b) and (3), 173, 174 and 176 to 178 of that Act were omitted, and

• (d) in its application for the purposes of paragraph (a) of section 290(5), any reference to company A were to the person referred to in that paragraph.

• (3) That Part is to be read, for the purposes mentioned in subsection (1), with all modifications necessary to ensure that—

• (a) it applies to a company which does not have share capital, and to holders of corresponding ordinary holdings in such a company, in a way which corresponds to the way it applies to companies with ordinary share capital and holders of ordinary shares in such companies,

• (b) it applies to a company which is an unincorporated association in a way which corresponds to the way it applies to companies which are bodies corporate,

• (c) it applies in relation to ownership through an entity (other than a company), or any trust or other arrangement, in a way which corresponds to the way it applies to ownership through a company, and

• (d) for the purposes of achieving paragraphs (a) to (c), profits or assets are attributed to holders of corresponding ordinary holdings in unincorporated associations, entities, trusts or other arrangements in a manner which corresponds to the way profits or assets are attributed to holders of ordinary shares in a company which is a body corporate.

• (4) In subsection (3) “corresponding ordinary holding” in an unincorporated association, entity, trust or other arrangement means a holding or interest which provides the holder with economic rights corresponding to those provided by a holding of ordinary shares in a body corporate.

Anti-avoidance

308

• (1) This section applies to arrangements if the main purpose, or one of the main purposes of the arrangements, is to—

• (a) reduce or avoid a charge to the electricity generator levy, or

• (b) otherwise avoid the effect of any of the provisions of this Part.

• (2) Any such reduction or avoidance that would (in the absence of this section) arise from such arrangements is to be counteracted by the making of such adjustments as are just and reasonable.

• (3) Where the arrangements result in a change in the composition of a generating undertaking that is a group (including where such a group ceases to exist), those adjustments may include adjustments to secure that the same liability to electricity generator levy arises, and can be recovered from members of the group, as if the composition of the group had not changed.

• (4) Any adjustments required to be made under this section (whether or not by an officer of Revenue and Customs) may be made by way of—

• (a) an assessment,

• (b) the modification of an assessment,

• (c) amendment or disallowance of a claim,

or otherwise.

• (5) In this section “arrangements” include any agreement, understanding, scheme transaction or series of transactions (whether or not legally enforceable).

Information sharing

309

• (1) This section applies to information that—

• (a) is held by the Secretary of State, the Gas and Electricity Markets Authority or the Northern Ireland Authority for Energy Regulation (each “a relevant person”), and

• (b) is relevant to the electricity generator levy.

• (2) Information to which this section applies may be disclosed by a relevant person (or anyone acting on behalf of that person) to the Commissioners for His Majesty’s Revenue and Customs for the purposes of their functions relating to electricity generator levy or any other tax.

• (3) Subject to subsection (5), no duty of confidentiality or other restriction on disclosure (however imposed) prevents the disclosure of information in accordance with subsection (2).

• (4) This section does not limit the circumstances in which information may be disclosed under—

• (a) section 105(2) to (4) of the Utilities Act 2000,

• (b) Article 63(2) to (4) of the Energy (Northern Ireland) Order 2003 (S.I. 2003/419 (N.I. 6)), or

• (c) any other enactment or rule of law.

• (5) Nothing in this section authorises the making of a disclosure which—

• (a) contravenes the data protection legislation (save that the power conferred by this section is to be taken into account in determining whether a disclosure contravenes that legislation), or

• (b) is prohibited by any of Parts 1 to 7 or Chapter 1 of Part 9 of the Investigatory Powers Act 2016 (save that the power conferred by this section is to be taken into account when determining whether a disclosure is prohibited by those provisions).

Interaction of electricity generator levy with corporation tax

310

• (1) In calculating profits or losses for the purposes of corporation tax—

• (a) no deduction is allowed in respect of the electricity generator levy, and

• (b) no account is to be taken of any amount which is paid by a person to another person for the purposes of meeting or reimbursing the cost of the electricity generator levy.

• (2) Subsection (3) applies if—

• (a) two related generating undertakings (within the meaning of section 298) have an agreement between them in relation to the surrender of amounts of shortfall amounts (within the meaning of that section),

• (b) such an amount is surrendered between them in accordance with section 299, and

• (c) as a result of the agreement the undertaking to whom the amount is surrendered makes a payment to the other undertaking that does not exceed the amount surrendered.

• (3) The payment—

• (a) is not to be taken into account in determining the profits or losses of either company for corporation tax purposes, and

• (b) for corporation tax purposes is not to be regarded as a distribution.

Regulations under this Part

311

• (1) Regulations under this Part are to be made by statutory instrument.

• (2) Regulations under this Part may—

• (a) make provision having retrospective effect, provided any such provision does not have the effect of increasing the amount of the electricity generator levy any generating undertaking is liable to;

• (b) make different provision for different purposes;

• (c) make supplementary, incidental and consequential provision;

• (d) make transitional or transitory provision and savings.

• (3) A statutory instrument containing regulations under this Part is subject to annulment in pursuance of a resolution of the House of Commons.

Minor definitions relating to electricity market

312

In this Part—

• “the Balancing and Settlement Code” means the code for the governance of electricity balancing and settlement in Great Britain which is maintained in accordance with the conditions of transmission licences granted under section 6(1)(b) of the Electricity Act 1989 as that code has effect from time to time;

• “distribution system” and “transmission system” mean anything which would be such a system for the purposes of—Part 1 of the Electricity Act 1989, orPart 2 of the Electricity (Northern Ireland) Order 1992 (S.I. 1992/231 (N.I. 1));

• “feed-in tariff export payments” means export payments within the meaning of Schedule A to Condition 33 of the standard conditions of electricity supply licences;

• “generation” does not include the release of electricity from a battery;

• “licensed distribution system” means a distribution system operated by the holder of a licence under—section 6(1)(c) of the Electricity Act 1989, orArticle 10(1)(bb) of the Electricity (Northern Ireland) Order 1992;

• “licensed transmission system” means a transmission system operated by the holder of a licence under—section 6(1)(b) of the Electricity Act 1989, orArticle 10(1)(b) of the Electricity (Northern Ireland) Order 1992;

• “the SEM Memorandum” means the Memorandum of Understanding referred to in Article 2(3) of the Electricity (Single Wholesale Market) (Northern Ireland) Order 2007 (S.I. 2007/913 (N.I. 7)).

• “settlement code” means—the Balancing and Settlement Code, orthe Trading and Settlement Code;

• “the standard conditions of electricity supply licences” means the standard conditions incorporated in licences under section 6(1)(d) of the Electricity Act 1989 by virtue of section 8A of that Act;

• “the Trading and Settlement Code” means the Single Electricity Market Trading and Settlement Code referred to in the SEM Memorandum as that code has effect from time to time.

Definitions in this Part

313

The following table contains a list of terms used in this Part and the provisions that define or explain them.

Term	Provision defining or explaining
accounting period (generally)	section 280(3)
accounting period (of a generating undertaking that is a group)	section 288(1)
allowable costs	section 284(1)
arm's length provision	section 283(9)
Balancing and Settlement Code	section 312
baseline fuel cost	section 285(3)
company	section 280(1)
company tax return	section 284(3)
distribution system	section 312
electricity generator levy	section 279(2)
exceptional generation fuel costs	section 285(1)
feed-in tariff export payments	section 312
generating undertaking	section 280(1)
generation fuel costs	section 285(2)
generation receipts	section 283(2)
grid connected electricity generation	section 282(3)
group	section 287(1)
HMRC	section 281(3)
joint venture undertaking	section 293(2)
lead member (of a group)	section 288(2)
principal member (of a group)	section 287(2)
qualifying electricity purchase costs	section 284(6)
qualifying joint venture	section 292(1)
qualifying new generating plant	section 311A
qualifying partnership	section 291(1)
qualifying period	section 280(2)
reference period (in relation to the determination of baseline fuel cost)	section 285(4)
relevant generating station	section 280(1)
relevant place	section 280(1)
relevant subsidiary (in sections 290, 296 and 297)	section 290(6)
SEM Memorandum	section 312
settlement code	section 312
significant equity holder	section 286(7)
significant minority shareholder (that is a person)	section 290(5)(a)
significant minority shareholder (that is a group of companies)	section 290(5)(b)
standard conditions of electricity supply licences	section 312
subject to a contract for difference, an investment contract, a revenue collection contract or feed-in tariff export payments (in relation to a generating station)	section 280(1)
subsidiary member (of a group)	section 287(3)
third party (in relation to a generating undertaking)	section 286(7)
Trading and Settlement Code	section 312
transmission system	section 312

Part 6 — Other taxes

Stamp duty land tax

Transactions funded with the assistance of a public subsidy

314

• (1) In section 71 of FA 2003 (certain acquisitions by registered social landlord), after subsection (4) insert—

(5) In this section “public subsidy” also means any grant under section 31 of the Local Government Act 2003 (grants towards expenditure incurred or to be incurred by local authorities) towards expenditure incurred or to be incurred on the provision of social housing within the meaning of Part 2 of the Housing and Regeneration Act 2008 (see sections 68 and 72 of that Act).

• (2) The amendment made by subsection (1) has effect in relation to land transactions the effective date of which falls on or after 15 March 2023.

Value added tax

Deposit schemes

315

In Part 3 of VATA 1994 (application of Act in particular cases), after section 55A insert—

(55B) (1) In sections 55C and 55D “a designated deposit scheme” means a deposit scheme which is designated, for the purposes of this section, by regulations made by the Commissioners. (2) A “deposit scheme” means a scheme which is established— (a) by regulations under Schedule 8 to the Environment Act 2021, or (b) by or under any other enactment that makes similar provision for a returnable deposit to be paid in relation to goods. (3) In subsection (2)(b), the reference to an “enactment” includes a reference to an enactment comprised in, or in an instrument made under— (a) an Act of the Scottish Parliament, (b) a Measure or Act of Senedd Cymru, or (c) Northern Ireland legislation. (4) Section 97(5) (statutory instruments: procedure) does not apply to a statutory instrument containing only regulations under subsection (1). (55C) (1) This section applies if— (a) a taxable person makes a taxable (but not a zero-rated) supply of goods, and (b) a deposit amount is payable in relation to the goods supplied. (2) For the purposes of this section and section 55D, a “deposit amount” in relation to goods is an amount that, in accordance with the provisions of a designated deposit scheme— (a) is added to the price payable for the goods, and (b) must be repaid by a person, if the conditions for repayment under the scheme are met. (3) The deposit amount is to be disregarded in determining the amount of the consideration for the purposes of calculating the value of the supply under this Act. (55D) (1) For the purposes of this section, a person makes a “relevant deposit scheme supply” if— (a) the person makes the first supply of goods in relation to which a deposit amount is payable (whether or not another person makes a subsequent supply of those goods in relation to which a deposit amount is payable), and (b) that supply is a taxable (but not a zero-rated) supply. (2) A person who makes relevant deposit scheme supplies is liable to account for and pay the VAT in respect of the deposit amount that, on the applicable assumption, would have been charged in relation to the proportion of the supplies that is determined, in accordance with provision made by or under regulations under subsection (4), as being attributable to goods in respect of which no deposit amount is repaid. (3) The applicable assumption is that, in the case of those goods, section 55C(3) is ignored and the deposit amount and the price payable for the goods are regarded instead as indistinguishable parts of the consideration for the supply of the goods. (4) The Commissioners may by regulations make provision about accounting for VAT in relation to designated deposit schemes including, in particular, provision— (a) for the making of financial adjustments in connection with the liability to account for and pay VAT under subsection (2); (b) specifying the methods for calculating those adjustments; (c) specifying the methods for determining or estimating the proportion of supplies in respect of which deposit amounts are not repaid; (d) about the manner in which, and the period within which, adjustments are to be made (including adjustments for the correction of errors); (e) specifying the conditions subject to which adjustments are to be made; (f) conferring power on the Commissioners to make provision for the purposes of paragraphs (a) to (e) by means of a notice published in accordance with the regulations. (5) The power to make regulations under subsection (4) includes power to make (or to enable the Commissioners to make)— (a) different provision for different purposes; (b) different provision for different areas; (c) consequential, supplementary, incidental, transitional, transitory or saving provision.

Import duty

Dumping, subsidisation and safeguarding remedies

316

Schedules 19 and 20 make provision for the purposes of import duty—

• (a) requiring the Trade Remedies Authority (“the TRA”) to give the Secretary of State notice at certain points in dumping, subsidisation and safeguarding investigations,

• (b) enabling the TRA to include more than one option in recommendations to the Secretary of State in relation to such investigations,

• (c) authorising the Secretary of State to ask for additional advice from, and act otherwise than in accordance with a recommendation of, the TRA in relation to such investigations,

• (d) requiring the TRA to advise the Secretary of State on whether the economic interest test is met in relation to remedies that it recommends in dumping, subsidisation or safeguarding cases,

• (e) about reviews of the application of remedies in such cases,

• (f) about bilateral safeguards, and

• (g) about Part 12 of the Trade Remedies (Dumping and Subsidisation) (EU Exit) Regulations 2019 (S.I. 2019/450).

Rulings as to method of valuation of goods

317

• (1) Section 24 of TCTA 2018 (rulings as to application of customs tariff or place of origin) is amended as follows.

• (2) In the heading, after “customs tariff” insert “, valuation method”.

• (3) In subsection (1), after paragraph (a) (but before the “or”) insert—

(aa) determining the value of any goods for the purposes of this Part,

.

Discharging goods from free-circulation procedure subject to guarantee

318

• (1) In paragraph 17 of Schedule 1 to TCTA 2018 (releasing and discharging goods to and from Customs procedures), after sub-paragraph (5) insert—

(5A) Sub-paragraph (5B) applies where— (a) goods are declared for the free-circulation procedure, but (b) it is impracticable to immediately ascertain the amount of import duty (if any) payable in respect of the goods. (5B) The discharge of goods from the free-circulation procedure in accordance with sub-paragraph (4) may, if HMRC think fit, be subject to an approved guarantee being given in respect of any liability or potential liability to import duty in respect of the goods.

• (2) In CEMA 1979, omit section 119 (delivery of imported goods on giving of security for duty).

• (3) The amendments made by subsections (1) and (2) have effect in relation to goods in respect of which a Customs declaration is accepted, for the purposes of TCTA 2018, on or after the day on which this Act is passed (and subsection (2) does not affect the application of section 119 of CEMA 1979 in relation to goods in respect of which a Customs declaration is accepted before that day).

• (4) In Schedule 7 to TCTA 2018 (import duty: consequential amendments), omit paragraph 90.

Fuel duties

Excepted machines etc

319

• (1) HODA 1979 is amended as follows.

• (2) Schedule 1A (excepted machines able to use rebated diesel etc) is amended in accordance with subsections (3) and (4).

• (3) In paragraph 6 (vessels)—

• (a) in the heading, after “Vessels” insert “etc”;

• (b) after sub-paragraph (3) insert—

(4) A tractor or gear owned by a charity and used by it for the purpose of launching or hauling in a lifeboat owned by it.

• (4) In paragraph 8 (other machines or appliances)—

• (a) in sub-paragraph (1)—

• (i) in paragraph (a), after “pisciculture” insert “, arboriculture”;

• (ii) in paragraph (d), at the beginning insert “primarily”;

• (iii) in paragraph (e), for “of premises that are used for commercial purposes” substitute “for any premises”;

• (b) after sub-paragraph (2) insert—

(3) The Commissioners may publish a notice making provision for the purposes of sub-paragraph (1)(d) about the meaning of— (a) “primarily”, and (b) “used for commercial purposes”.

• (5) In section 14B (rebate on bioblend used as fuel for excepted machines), for subsection (6) substitute—

(6) In subsection (3)— - “HO%” means the percentage of the bioblend that is heavy oil, and - “BD%” means the percentage of the bioblend that is biodiesel, where the percentages are by volume to the nearest 0.001%.

• (6) The amendments made by subsections (2) to (4) are to be treated as having come into force on 15 March 2023.

Tobacco products duty

Rates of tobacco products duty

320

• (1) In Schedule 1 to TDPA 1979 (table of rates of tobacco products duty), for the Table substitute—

1 Cigarettes	An amount equal to the higher of— 16.5% of the retail price plus £294.72 per thousand cigarettes, or £393.45 per thousand cigarettes.
2 Cigars	£367.61 per kilogram
3 Hand-rolling tobacco	£351.03 per kilogram
4 Other smoking tobacco and chewing tobacco	£161.62 per kilogram
5 Tobacco for heating	£302.93 per kilogram

• (2) In consequence of the provision made by subsection (1), in Schedule 2 to the Travellers’ Allowances Order 1994 (which provides in certain circumstances for a simplified calculation of excise duty on goods brought into Great Britain)—

• (a) in the entry relating to cigarettes, for “£347.86” substitute “£393.45”,

• (b) in the entry relating to hand rolling tobacco, for “£302.34” substitute “£351.03”,

• (c) in the entry relating to other smoking tobacco and chewing tobacco, for “£144.17” substitute “£161.62”,

• (d) in the entry relating to cigars, for “£327.92” substitute “£367.61”,

• (e) in the entry relating to cigarillos, for “£327.92” substitute “£367.61”, and

• (f) in the entry relating to tobacco for heating, for “£81.07” substitute “£90.88”.

• (3) The amendments made by this section are treated as having come into force at 6pm on 15 March 2023.

Soft drinks industry levy

Flavour concentrates

321

Schedule 21 makes amendments of Part 2 of FA 2017 (soft drinks industry levy) in connection with flavour concentrates.

Air passenger duty

New bands and rates

322

• (1) Section 30 of FA 1994 (air passenger duty: rates) is amended as follows.

• (2) In subsection (1A), after “long haul” insert “and ultra-long haul”.

• (3) After subsection (1A) insert—

(1B) If the passenger’s journey ends at a place in the United Kingdom— (a) if the passenger’s agreement for carriage provides for standard class travel in relation to every flight on the passenger’s journey, the rate is £6.50, and (b) in any other case, the rate is £13.

• (4) In subsection (2) omit “the United Kingdom or”.

• (5) After subsection (2) insert—

(2A) If the passenger’s journey ends at a place in a territory specified in Part 1A of Schedule 5A— (a) if the passenger’s agreement for carriage provides for standard class travel in relation to every flight on the passenger’s journey, the rate is £87, and (b) in any other case, the rate is £191.

• (6) In subsection (4A)—

• (a) in paragraph (a), for “£84” substitute “£91”;

• (b) in paragraph (b), for “£185” substitute “£200”.

• (7) In subsection (4E)—

• (a) before paragraph (a) insert—

(za) if the rate which (apart from this subsection) would apply is the rate in subsection (1B)(a) or (b), a rate of £78 is to apply instead,

;

• (b) in paragraph (a), for “equal to six times the rate in subsection (2)(a)” substitute “of £78”;

• (c) omit the “and” at the end of paragraph (a);

• (d) after paragraph (a) insert—

(aa) if the rate which (apart from this subsection) would apply is the rate in subsection (2A)(a) or (b), a rate of £574 is to apply instead, and

;

• (e) in paragraph (d), for “equal to 6.6 times the rate in subsection (4A)(a)” substitute “of £601”.

• (8) In Schedule 5A to FA 1994 (air passenger duty: territories etc)—

• (a) in Part 1 (Part 1 territories)—

• (i) for “Czech Republic” substitute “Czechia”;

• (ii) for “Former Yugoslav Republic of” substitute “North”;

• (b) after Part 1 insert—

Afghanistan	Cuba	Kyrgyzstan	Senegal
Angola	Curacao	Lebanon	Seychelles
Anguilla	Djibouti	Liberia	Sierra Leone
Antigua and Barbuda	Dominica	Macau	Sint Eustatius
Armenia	Dominican Republic	Malawi	Sint Maarten
Aruba	Egypt	Maldives	Somalia
Azerbaijan	El Salvador	Mali	South Korea
Bahrain	Equatorial Guinea	Martinique	South Sudan
Bangladesh	Eritrea	Mauritania	Sri Lanka
Barbados	Ethiopia	Mayotte	St Helena, Ascension and Tristan da Cunha
Belize	French Guiana	Mongolia	St Kitts and Nevis
Benin	Gabon	Montserrat	Sudan
Bermuda	Georgia	Namibia	Suriname
Bhutan	Ghana	Nepal	Syria
Bonaire	Grenada	Nicaragua	Tajikistan
Botswana	Guadeloupe	Niger	Tanzania
Brazil	Guatemala	Nigeria	The Bahamas
British Virgin Islands	Guinea	North Korea	The Gambia
Burkina Faso	Guinea-Bissau	Oman	Togo
Burundi	Guyana	Pakistan	Trinidad and Tobago
Cameroon	Haiti	Panama	Turkmenistan
Canada	Honduras	Qatar	Turks and Caicos Islands
Cape Verde	India	Russian Federation, east of the Ural Mountains	Uganda
Cayman Islands	Iran	Rwanda	United Arab Emirates
Central African Republic	Iraq	Saba	United States (including Puerto Rico and U.S. Virgin Islands)
Chad	Israel	Saint Barthélemy	Uzbekistan
China	Ivory Coast	Saint Lucia	Venezuela
Colombia	Jamaica	Saint Martin	Yemen
Comoros	Jordan	Saint Pierre and Miquelon	Zambia
Congo	Kazakhstan	Saint Vincent and the Grenadines	Zimbabwe
Congo (Democratic Republic)	Kenya	Sao Tome and Principe
Costa Rica	Kuwait	Saudi Arabia

.

• (9) In consequence of the amendments made by this section, in Schedule 1 to The Aircraft Operators (Accounts and Records) Regulations 1994 (S.I. 1994/1737) (particulars of an air passenger duty account), in paragraph (e)—

• (a) before sub-paragraph (i) insert—

(ai) chargeable at the rates set out in section 30(1B)(a) and (b) of the Act;

;

• (b) after sub-paragraph (i) insert—

(ia) chargeable at the rates set out in section 30(2A)(a) and (b) of the Act;

;

• (c) in sub-paragraph (viii), for “(a)” substitute “(za), (a), (aa)”.

• (10) The amendments made by this section have effect in relation to the carriage of passengers beginning on or after 1 April 2023.

Northern Ireland rates

323

• (1) Section 30A of FA 1994 (Northern Ireland long haul rates of duty) is amended as follows.

• (2) In the heading, after “long haul” insert “and ultra-long haul”.

• (3) In subsection (5A), in paragraph (c) omit sub-paragraph (ii) and the “or” before it.

• (4) After subsection (7) insert—

(7A) For the purposes of any paragraph, an Act of the Northern Ireland Assembly may set one rate for cases within section 30(2A) and a different rate for cases within section 30(4A).

• (5) The amendments made by this section have effect in relation to the carriage of passengers beginning on or after 1 April 2023.

Vehicle taxes

Rates of vehicle excise duty

324

• (1) Schedule 1 to VERA 1994 (annual rates of vehicle excise duty) is amended as follows.

• (2) In paragraph 1 (general rate)—

• (a) in sub-paragraph (2) (vehicle not covered elsewhere in Schedule with engine cylinder capacity exceeding 1,549cc), for “£295” substitute “£325”, and

• (b) in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£180” substitute “£200”.

• (3) In paragraph 1B (graduated rates for light passenger vehicles registered before 1 April 2017), for the Table substitute—

CO2 Emissions Figure	CO2 Emissions Figure	Rate	Rate
(1)	(2)	(3)	(4)
Exceeding	Not exceeding	Reduced rate	Standard Rate
g/km	g/km	£	£
100	110	10	20
110	120	25	35
120	130	140	150
130	140	170	180
140	150	190	200
150	165	230	240
165	175	280	290
175	185	310	320
185	200	355	365
200	225	385	395
225	255	665	675
255	—	685	695

.

• (4) In the sentence immediately following the Table in that paragraph, for paragraphs (a) and (b) substitute—

(a) in column (3), in the last two rows, “385” were substituted for “665” and “685”, and (b) in column (4), in the last two rows, “395” were substituted for “675” and “695”.

• (5) In paragraph 1GC (graduated rates for first licence for light passenger vehicles registered on or after 1 April 2017), for Table 1 (vehicles other than higher rate diesel vehicles) substitute—

CO2 Emissions Figure	CO2 Emissions Figure	Rate	Rate
(1)	(2)	(3)	(4)
Exceeding	Not exceeding	Reduced rate	Standard Rate
g/km	g/km	£	£
0	50	0	10
50	75	20	30
75	90	120	130
90	100	155	165
100	110	175	185
110	130	200	210
130	150	245	255
150	170	635	645
170	190	1030	1040
190	225	1555	1565
225	255	2210	2220
255	—	2595	2605

.

• (6) In that paragraph, for Table 2 (higher rate diesel vehicles) substitute—

CO2 Emissions Figure	CO2 Emissions Figure	Rate
(1)	(2)	(3)
Exceeding	Not exceeding	Rate
g/km	g/km	£
0	50	30
50	75	130
75	90	165
90	100	185
100	110	210
110	130	255
130	150	645
150	170	1040
170	190	1565
190	225	2220
225	255	2605
255	—	2605

.

• (7) In paragraph 1GD(1) (rates for any other licence for light passenger vehicles registered on or after 1 April 2017)—

• (a) in paragraph (a) (reduced rate), for “£155” substitute “£170”, and

• (b) in paragraph (b) (standard rate), for “£165” substitute “£180”.

• (8) In paragraph 1GE(2) (rates for light passenger vehicles registered on or after 1 April 2017 with a price exceeding £40,000)—

• (a) in paragraph (a), for “£510” substitute “£560”, and

• (b) in paragraph (b), for “£520” substitute “£570”.

• (9) In paragraph 1J(a) (rates for light goods vehicles that are not pre-2007 or post-2008 lower emission vans), for “£290” substitute “£320”.

• (10) In paragraph 2(1) (rates for motorcycles)—

• (a) in paragraph (a) (engine cylinder capacity not exceeding 150cc), for “£22” substitute “£24”,

• (b) in paragraph (b) (motorbicycles with engine cylinder capacity exceeding 150cc but not exceeding 400cc), for “£47” substitute “£52”,

• (c) in paragraph (c) (motorbicycles with engine cylinder capacity exceeding 400cc but not exceeding 600cc), for “£73” substitute “£80”, and

• (d) in paragraph (d) (other cases), for “£101” substitute “£111”.

• (11) The amendments made by this section have effect in relation to licences taken out on or after 1 April 2023.

Reform of HGV road user levy

325

Schedule 22 makes provision (including consequential provision) about—

• (a) the charging of HGV road user levy in respect of UK-registered and non-UK registered heavy goods vehicles,

• (b) the register of HGV road user levy paid or due to be paid, and

• (c) the rate of HGV road user levy chargeable in respect of a heavy goods vehicle by reference to the vehicle’s revenue weight.

End of exempt period for HGV road user levy

326

• (1) In section 88 of FA 2020 (HGV road user levy)—

• (a) in the heading, at the end insert “: exempt period”;

• (b) in subsection (1), at the beginning insert “Subject to section 88A,”;

• (c) in subsection (3), at the beginning insert “For the purposes of this section and section 88A,”.

• (2) After that section insert—

(88A) (1) This section applies where— (a) a UK heavy goods vehicle (the “charged vehicle”) is charged to vehicle excise duty in respect of more than one period (a “charged period”) beginning within the last 12 months of the exempt period, and (b) the combined length of the charged periods is more than 12 months. (2) Section 5(2) of the 2013 Act applies in relation to the charged vehicle in respect of each complete month in the period (the “transitional liability period”)— (a) beginning with the day after the last exempt day in relation to the charged vehicle, and (b) ending with the end of the charged period during which that last exempt day occurs. (3) The last exempt day, in relation to a charged vehicle, is the last day of the period of 12 months beginning with the day on which the first charged period beginning within the last 12 months of the exempt period began. (4) Subsection (5) applies where, in relation to the charged vehicle— (a) a notification has been made under section 7(2)(c) of the 2013 Act (an “off-road notification”) in respect of a period beginning within the last 12 months of the exempt period, and (b) vehicle excise duty is charged in respect of a period beginning— (i) after the day on which the off-road notification is made, and (ii) within the last 12 months of the exempt period. (5) In calculating the period of 12 months mentioned in subsection (3) ignore the number of whole months in the period beginning with the day on which the off-road notification is made and ending with the first day of the period described in subsection (4)(b). (6) The Secretary of State, and any person who may exercise powers on behalf of the Secretary of State under section 9 of the 2013 Act (collection of levy), may (in addition to having the powers, duties and liabilities mentioned in that section) give a notice (a “payment notice”) to a person liable for HGV road user levy in respect of a transitional liability period. (7) A payment notice must state— (a) the amount of HGV road user levy for which the person is liable in respect of the transitional liability period, (b) how the amount is to be paid, and (c) that payment must be made within the period of 28 days beginning with the day on which the notice is given. (8) The amount in subsection (7)(a) is given by— $$L×M12$ where— L is the yearly rate of HGV road user levy applicable in relation to the vehicle on the first day of the transitional liability period, and M is the number of whole months during the transitional liability period.$ (9) In relation to the transitional liability period— (a) a person commits an offence under section 11 of the 2013 Act (offence of using or keeping heavy goods vehicle if levy not paid) only if the person— (i) has been given a payment notice, and (ii) has failed to make payment in accordance with that notice, and (b) section 7(5A) of the Vehicle Excise and Registration Act 1994 has effect as if the reference to HGV road user levy having been paid were a reference to it having been paid in accordance with a payment notice. (10) In this section “UK heavy goods vehicle” has the same meaning as in the HGV Road User Levy Act 2013 (see section 2 of that Act).

Environmental taxes

Rates of landfill tax

327

• (1) Section 42 of FA 1996 (amount of landfill tax) is amended as follows.

• (2) In subsection (1)(a) (standard rate), for “£98.60” substitute “£102.10”.

• (3) In subsection (2) (reduced rate for certain disposals), in the words after paragraph (b)—

• (a) for “£98.60” substitute “£102.10”, and

• (b) for “£3.15” substitute “£3.25”.

• (4) The amendments made by this section have effect in relation to disposals made (or treated as made) on or after 1 April 2023.

Rates of climate change levy

328

• (1) Paragraph 42 of Schedule 6 to FA 2000 (climate change levy: amount payable by way of levy) is amended as follows.

• (2) In sub-paragraph (1), for the table substitute—

Taxable commodity supplied	Rate at which levy payable if supply is not a reduced-rate supply
Electricity	£0.00775 per kilowatt hour
Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility	£0.00775 per kilowatt hour
Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state	£0.02175 per kilogram
Any other taxable commodity	£0.06064 per kilogram

• (3) In sub-paragraph (1)(c) (reduced-rate supplies in respect of any taxable commodity other than electricity or petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state), for “12” substitute “11”.

• (4) In consequence of the amendment made by subsection (3), in the definition of “r” in the Notes to paragraph 2 of Schedule 1 to the Climate Change Levy (General) Regulations 2001 (S.I. 2001/838), for “0.88” substitute “0.89”.

• (5) The amendments made by this section have effect in relation to supplies treated as taking place on or after 1 April 2024.

Rate of plastic packaging tax

329

• (1) In section 45(1) of FA 2021 (rate of plastic packaging tax), for “£200” substitute “£210.82”.

• (2) The amendment made by this section has effect in relation to packaging components produced in, or imported into, the United Kingdom on or after 1 April 2023.

Aggregates levy: exemptions and exploitation

330

• (1) Part 2 of FA 2001 (aggregates levy) is amended as follows.

• (2) In section 17 (meanings of “aggregate” and “taxable aggregate”)—

• (a) in subsection (3)—

• (i) omit paragraphs (b), (d) and (da);

• (ii) omit the “or” at the end of paragraph (e);

• (iii) after paragraph (f) insert

; or (g) it consists wholly of aggregate won by being removed from the ground on the site of any or any proposed structure, or the site of any or any proposed infrastructure relating to transportation or utilities, in the course of excavations lawfully carried out— (i) in connection with, and necessary for, the construction, modification, maintenance or improvement of the structure or infrastructure, and (ii) not for the purpose of extracting that aggregate.

;

• (b) in subsection (4) omit paragraph (e);

• (c) in subsection (7) omit the definition of “highway”.

• (3) In section 19 (commercial exploitation)—

• (a) in subsection (3), in paragraph (e), for “site from which it was won” substitute “original site by virtue of it being used for a purpose connected with winning aggregate or other minerals from the site”;

• (b) after subsection (3A) insert—

(3B) For the purposes of subsection (3)(e), in relation to a quantity of aggregate, “the original site” means the site from which it was won.

;

• (c) for subsection (4) substitute—

(4) Subsection (4A) applies where, at the time when any aggregate is won from any site, a person (“P”) is in occupation for relevant purposes of— (a) that site, or (b) that site and other land. (4A) Where this subsection applies, so long as the site mentioned in subsection (4), or that site and the other land, continue to be occupied by P for relevant purposes, subsection (3)(e) has effect as if— (a) (where relevant) the reference to the land at the original site included the other land, and (b) the words “by virtue of it being used for a purpose connected with winning aggregate or other minerals from the site” were omitted. (4B) For the purposes of subsections (4) and (4A) relevant purposes are— (a) the purposes of the carrying on of any agricultural business, or (b) the purposes of the carrying on of any forestry business or otherwise for the purposes of forestry.