Finance (No. 2) Act 2023

295 Arrangements that reflect receipts (JV participants)

(1) Subsection (2) applies to generation if—

(a) the generation is attributed to a joint venture undertaking, other than in accordance with this section or sections 294, 296 or 297,

(b) a participant (“Q”) in the joint venture (“the JV”) that comprises, or is the principal member of, the joint venture undertaking is party to arrangements that result in amounts arising by reference to the generation,

(c) those amounts would, if the joint venture undertaking, or a member of it, were party to those arrangements, be taken into account in determining the generation receipts of the joint venture undertaking, and

(d) the generation—

(i) is not supplied (directly or indirectly) to Q, or

(ii) in the case of generation falling within section 282(3)(b) (generation expected to be generated which was not generated), was not expected to be supplied (directly or indirectly) to Q.

(2) Where this subsection applies to generation—

(a) the generation is to be attributed to Q (as well as to the joint venture undertaking),

(b) the generation attributed to Q as a result of paragraph (a) is to be attributed to Q for the qualifying period of Q in which the generation occurred,

(c) subject to paragraph (d), the generation attributed to Q as a result of paragraph (a) is to be treated for the purposes of this Part as if it had been attributed under section 282(1),

(d) in determining the exceptional generation receipts of Q for a qualifying period of Q under section 279(5)—

(e) any generation attributed to Q for that period as a result of paragraph (a) is to be ignored for the purposes of Step 2 (which may result in the result of that Step being nil).

(3) But amount of generation that is to be attributed to Q in a qualifying period of Q under this section is not to exceed the amount given by subtracting—

(a) the amount of generation attributed to Q in that period under section 294, from

(b) the amount of generation attributed to the joint venture undertaking in respect of that same period multiplied by the relevant proportion (see section 294(5)).