Clause 47 - Extinguishment of BNFL losses for tax purposes
Energy Bill [Lords]
3:15 pm

Mr Norman Baker (Shadow Secretary of State for the Environment, Environment, Food & Rural Affairs; Lewes, Liberal Democrat)

This clause has a rather alarming title, and it says that

''after the trigger date, all the relevant losses of every BNFL company arising before that date shall be treated for the purposes of corporation tax as extinguished.''

That seems to wipe the slate clean. I suppose that the Treasury has agreed to that. Can the Minister quantify the losses that will flow from that provision?

Mr Stephen Timms (Minister of State (e-Commerce & Competitiveness), Department of Trade and Industry; East Ham, Labour)

The accumulated tax losses in BNFL companies that have built up over time largely arise, one way or another, from provisions made in BNFL's accounts for the future costs of nuclear decommissioning and clean-up. In other words, they relate largely to deductions made in the past for the future expenses of nuclear decommissioning and clean-up. The losses will be extinguished when the NDA takes responsibility for decommissioning and clean-up under clause 24 or when assets and liabilities are transferred from BNFL under clause 42, whichever occurs first. I do not have a figure for the sum involved,

but I will certainly see whether I can provide that for the hon. Gentleman and other members of the Committee.

Question put and agreed to.

Clause 47 ordered to stand part of the Bill.

Clause 48 ordered to stand part of the Bill.

Schedule 7 agreed to.

Clause 49 ordered to stand part of the Bill.

Schedule 8 agreed to.

Clause 50 ordered to stand part of the Bill.

Schedule 9 agreed to.