Part 5Electricity generator levy
Treatment of company as transparent as alternative to attribution and surrender
301Effect of company being transparent
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.