Part 5Electricity generator levy

Introduction and charge

280Key concepts (generating undertaking etc)

1

In this Part—

  • “company” has the meaning it has in the Corporation Tax Acts (see section 1121 of CTA 2010);

  • “generating undertaking” means—

    1. a

      a company, other than a company that is a member of a group, that operates a relevant generating station, or

    2. b

      a group of companies that includes at least one member who operates a relevant generating station;

  • a generating station is “relevant”—

    1. a

      if it generates electricity at a relevant place and is not a generating station that mainly generates electricity—

      1. i

        as a result of the burning of oil, coal or natural gas, or

      2. ii

        as a result of the use of plant driven by water, where the power is mainly a result of the hydrostatic head of the water having been increased by pumping, and

    2. b

      to the extent that it is not subject to—

      1. i

        a contract for difference within the meaning of Chapter 2 of Part 2 of the Energy Act 2013 (contracts for difference),

      2. ii

        an investment contract within the meaning of Schedule 2 to that Act (investment contracts),

      3. iii

        a revenue collection contract within the meaning of Part 2 of the Nuclear Energy (Financing) Act 2022 (revenue collection contracts), or

      4. iv

        feed-in tariff export payments;

  • “relevant place” means a place in—

    1. a

      the United Kingdom,

    2. b

      the territorial sea of the United Kingdom, or

    3. c

      a Renewable Energy Zone within the meaning of Part 2 of the Energy Act 2004 (see section 84(4) of that Act);

  • a generating station is “subject”—

    1. a

      to a contract for difference or an investment contract to the extent that its output may give rise to payments under such an instrument, and

    2. b

      to feed-in tariff export payments to the extent its output gives rise to such payments, and

    3. c

      to a revenue collection contract if the station is the subject of such a contract.

2

References in this Part to a “qualifying period” in relation to a generating undertaking means—

a

the period, if any, between the beginning of 1 January 2023 and the commencement of the first accounting period of the undertaking that commences on or after 1 January 2023,

b

the first accounting period of the undertaking commencing on or after 1 January 2023,

c

every subsequent accounting period of the undertaking that ends on or before 31 March 2028, and

d

the period, if any, between the end of the last accounting period ending on or before 31 March 2028 and the end of 31 March 2028.

3

References in this Part to an “accounting period” are—

a

in relation to a company within the charge to corporation tax, to an accounting period for the purposes of that tax, or

b

in relation to a company not within the charge to corporation tax, to a period that would be an accounting period for the purposes of that tax were the company within the charge to that tax and had first come within it on 1 January 2023.

See also section 288, which provides that the accounting period of a generating undertaking that is a group is the accounting period of its lead member.