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(2) For the purposes of the application of the enactments mentioned in sub-paragraph (3) to the assets of the company which has become a relevant site licensee, that company shall be treated as continuing, for so long as it is a relevant site licensee, to be a member of the group of companies of which it was a member immediately before the scheme took effect.

(3) Those enactments are—

(a) the 1992 Act;

(b) Schedule 29 to the Finance Act 2002 (c. 23);

(c) paragraphs 5, 14, 19 and 26 of this Schedule.

(4) The reference in sub-paragraph (2) to the group of companies of which a company was a member is to be construed—

(a) in relation to the 1992 Act in accordance with the provisions of section 170 of that Act; and

(b) in relation to Schedule 29 to the Finance Act 2002, in accordance with Part 8 of that Schedule.

29 (1) This paragraph applies where—

(a) as a consequence of a transfer in accordance with a nuclear transfer scheme of securities of a subsidiary of the NDA, that subsidiary becomes a relevant site licensee;

(b) as a consequence of a transfer to the NDA or to a subsidiary of the NDA in accordance with such a scheme of securities of a company, that company ceases to be a relevant site licensee; or

(c) there is a transfer in accordance with such a scheme of securities of a company that is a relevant site licensee from one person to another person for purposes connected with securing that the condition in section 27(5)(c) continues to be satisfied in relation to the company.

(2) For the purposes of the 1992 Act, the securities shall be treated as disposed of to the transferee for a consideration of such amount as would secure that, on the disposal, neither a gain nor a loss accrues to the transferor.

30 In this Part of this Schedule “relevant site licensee” has the same meaning as in subsection (4) of section 27 (see subsection (5)).

Part 4 Transfer of Nuclear Liabilities Investment Portfolio

Application of Part 4 of Schedule

31 This Part of this Schedule applies to a transfer to the Secretary of State in accordance with a nuclear transfer scheme containing provision authorised by section 42 of this Act.

Chargeable gains: assets to be treated as disposed without a gain or a loss

32 (1) This paragraph applies for the purposes of the 1992 Act where an asset is transferred by a transfer to which this Part of this Schedule applies.

(2) The asset shall be treated as disposed of to the Secretary of State for a consideration of such amount as would secure that, on the disposal, neither a gain nor a loss accrues to BNFL.

Neutral effect of transfer for loan relationships and derivative contracts

33 No credit or debit shall be required or allowed, in respect of a transfer to which this Part of this Schedule applies, to be brought into account in BNFL’s case—

(a) for the purposes of Chapter 2 of Part 4 of the Finance Act 1996 (c. 8) (loan relationships); or

(b) for the purposes of Schedule 26 to the Finance Act 2002 (c. 23).

Part 5 Stamp duty etc.

34 (1) Stamp duty is not to be chargeable—

(a) on a nuclear transfer scheme, or

(b) on an instrument certified by the Secretary of State to the Commissioners of Inland Revenue as made for the purposes of such a scheme, or as made for purposes connected with such a scheme,

except to the extent that the scheme or instrument includes provision in relation to private transfers.

(2) But where, by virtue of sub-paragraph (1), stamp duty is not chargeable at all, or is chargeable only to a reduced extent, on a nuclear transfer scheme or instrument, the scheme or instrument is to be treated as duly stamped only if—

(a) in accordance with section 12 of the Stamp Act 1891 (c. 39) it has been stamped with a stamp denoting either that it is not chargeable to duty or that it has been duly stamped; or

(b) it is stamped with the duty to which it would be chargeable apart from sub-paragraph (1).

(3) An agreement which is made for the purposes of a nuclear transfer scheme or purposes connected with such a scheme is not to give rise to stamp duty reserve tax except to the extent that the agreement relates to private transfers.

(4) In this paragraph—

• “instrument” has the same meaning as in the Stamp Act 1891;

• “private transfer” means—

  (a)

  a transfer of any property, right or liability to a person other than the Secretary of State, the NDA or a publicly owned company; or

  (b)

  the creation of an interest or right in favour of a person other than the Secretary of State, the NDA or a publicly owned company.

Part 6 Supplemental provisions of Schedule

Groups of companies

35 References to a company in the following enactments shall apply to the NDA—

(a) sections 170 to 181 of the 1992 Act;

(b) Part 8 of Schedule 29 to the Finance Act 2002 (c. 23).

Consequential amendment

36 In section 35(3)(d) of the 1992 Act (no gain no loss disposals) after sub-paragraph (xiv) insert—

“(xv) paragraph 3, 18, 29 or 32 of Schedule 9 to the Energy Act 2004.”

Interpretation of Schedule

37 (1) In this Schedule—

• “the 1992 Act” means the Taxation of Chargeable Gains Act 1992 (c. 12);

• “the 2001 Act” means the Capital Allowances Act 2001 (c. 2);

• “exempt activities” has the same meaning as in section 27 of this Act;

• “NDA company” has the same meaning as in section 27 of this Act;

• “the Nuclear Liabilities Investment Portfolio” means property and rights to which BNFL is entitled and which appear to the Board, from BNFL’s published accounts, to represent assets held by BNFL for the purpose of being able to meet costs or liabilities for which the NDA has a financial responsibility under Chapter 1 of Part 1 of this Act;

• “section 39 scheme” means a nuclear transfer scheme authorised by section 39 of this Act;

• “section 40 scheme” means a nuclear transfer scheme authorised by section 40 of this Act;

• “transferee”, in relation to a transfer in accordance with a nuclear transfer scheme, means the person to whom the transfer is made;

• “transferor”, in relation to a transfer in accordance with a nuclear transfer scheme, means the person from whom the transfer is made;

• “the Taxes Act” means the Income and Corporation Taxes Act 1988 (c. 1).

(2) Before determining for the purposes of this Schedule whether an asset was comprised at a particular time in the Nuclear Liabilities Investment Portfolio, the Board must consult the Secretary of State.

(3) So far as it relates to corporation tax this Schedule is to be construed as one with the Corporation Tax Acts.

(4) So far as it relates to capital allowances this Schedule is to be construed as one with the 2001 Act.