Finance (No. 2) Act 2023

68 Demergers

(1) This section applies if a demerger event occurs in relation to a production group.

(2) A “demerger event” occurs, in relation to a production group, if a group producer (the “demerging producer”) ceases to be connected with at least one other group producer.

(3) A “group producer” in relation to a production group means a person who produces alcoholic products on premises that are (immediately before the demerger event) included in the production group.

(4) For the purposes of the application of sections 56 and 59 in relation to the demerger year, the alcohol production amount for the immediately preceding production year, in relation to production premises that were (immediately before the demerger event) included in the group, is treated as being nil.

(5) If, before the end of the restricted period, the demerging producer becomes connected again with another group producer, none of sections 61 to 67 apply by reference to that connection.

(6) For the purposes of subsection (5), the “restricted period” is the period of 7 years beginning with the date on which the demerger event occurs.

(7) Subsection (8) applies if the demerger event occurs in Year 1, 2 or 3 in relation to a post-merger production group (the “relevant group”).

(8) Neither the production year in which the event occurs, nor any subsequent year, is a merger transition year in relation to the relevant group.

(9) References in this section to the “demerger year” are references to the production year in which the demerger event occurs.