The Taxes (State Aid) (Amendments) (EU Exit) Regulations 2020
| Jurisdiction | UK Non-devolved |
| Citation | SI 2020/1499 |
| Year | 2020 |
2020 No. 1499
Climate Change Levy
Corporation Tax
Income Tax
Exiting The European Union
The Taxes (State Aid) (Amendments) (EU Exit) Regulations 2020
Made 9th December 2020
Laid before the House of Commons 10th December 2020
Coming into force in accordance with regulation 1
The Treasury make the following Regulations in exercise of the power conferred by section 90(1)(a) and (b), (2) and (6) of the Finance Act 20191and sections 45DB(12)(a), 45M(15)(a) and 360L(8) of the Capital Allowances Act 20012.
Further to section 90(7)(b) of the Finance Act 2019, the Prime Minister has notified the President of the European Council, in accordance with Article 50(3) of the Treaty on European Union3, of the United Kingdom’s request to extend the period in which the Treaties shall still apply to the United Kingdom.
PART 1
Introduction
Citation and commencement
1. These Regulations may be cited as the Taxes (State Aid) (Amendments) (EU Exit) Regulations 2020 and come into force on IP completion day.
PART 2
Amendments to primary legislation
2.—(1) Paragraph 44 of Schedule 6 to the Finance Act 20004is amended as follows.
(2) In sub-paragraph (2C)5at the beginning of sub-paragraph (b) insert “in a case described in sub-paragraph (2CA),”.
(3) After that sub-paragraph insert—
“2CA. That case is where the result is required to be compatible with the common market by virtue of relevant separation agreement law (as defined in section 7C(3) of the European Union (Withdrawal) Act 2018).”.
3.—(1) The Capital Allowances Act 2001 is amended as follows.
(2) In section 45DB(11) in the definition of “General Block Exemption Regulation”, after “(General block exemption Regulation)” insert “as it had effect in the United Kingdom immediately before IP completion day”.
(3) In section 45M(12) in the definition of “General Block Exemption Regulation”, after “(General block exemption Regulation)” insert “as it had effect in the United Kingdom immediately before IP completion day”.
(4) In section 212T(6)6after “(General block exemption Regulation)” insert “as it had effect in the United Kingdom immediately before IP completion day”.
(5) In section 212U(5)7in the definition of “single investment project”, after “(General block exemption Regulation)” insert “as it had effect in the United Kingdom immediately before IP completion day”.
(6) In section 360L(6) in the definition of “General Block Exemption Regulation”, after “(General block exemption Regulation)” insert “as it had effect in the United Kingdom immediately before IP completion day”.
4.—(1) The Income Tax Act 20078is amended as follows.
(2) In section 173A(3)(c)9—
(a)
(a) after “approved by the European Commission” insert “before IP completion day”;
(b)
(b) for “(as those guidelines may be amended or replaced from time to time)” substitute “(as those guidelines had effect at the time of the approval)”.
(3) In section 175A(8)10—
(a)
(a) in the definition of “entering a new product or geographical market” after “(General block exemption Regulation)” insert “as it had effect in the United Kingdom immediately before IP completion day”;
(b)
(b) in the definition of “first commercial sale” for “(as those guidelines may be amended or replaced from time to time)” substitute “(as those guidelines had effect in the United Kingdom immediately before IP completion day)”.
(4) In section 180B(3)11after “Community Guidelines on State Aid for Rescuing and Restructuring Firms in Difficulty (2004/C244/02)” insert “as those guidelines had effect in the United Kingdom immediately before IP completion day”.
(5) In section 196A12after “30 December 2003” insert “, except that references in that Framework to building in the Union are to be read as including building in the United Kingdom”.
(6) In section 257DE(3)13after “Community Guidelines on State Aid for Rescuing and Restructuring Firms in Difficulty (2004/C244/02)” insert “as those guidelines had effect in the United Kingdom immediately before IP completion day”.
(7) In section 257MNC14—
(a)
(a) in subsection (5)—
(i) in the opening words, after “laid down” insert “in Commission Regulation (EU) No 1407/201315(de minimis aid) as it had effect in the United Kingdom immediately before IP completion day”;
(ii) omit paragraphs (a) and (b);
(b)
(b) in subsection (6) for “as amended from time to time” substitute “as it had effect in the United Kingdom immediately before IP completion day”.
(8) In section 280B(4)(c)16for “(as those guidelines may be amended or replaced from time to time)” substitute “(as those guidelines had effect at the time of the approval)”.
(9) In section 280C(9)17—
(a)
(a) in the definition of “entering a new product or geographical market”, after “(General block exemption Regulation)” insert “as it had effect in the United Kingdom immediately before IP completion day”;
(b)
(b) in the definition of “first commercial sale” for “(as those guidelines may be amended or replaced from time to time)” substitute “(as those guidelines had effect in the United Kingdom immediately before IP completion day)”.
(10) In section 286B(2)18after “Community Guidelines on State Aid for Rescuing and Restructuring Firms in Difficulty (2004/C244/02)” insert “as those guidelines had effect in the United Kingdom immediately before IP completion day”.
(11) In section 292A(3)(c)19—
(a)
(a) after “approved by the European Commission” insert “before IP completion day”;
(b)
(b) for “(as those guidelines may be amended or replaced from time to time)” substitute “(as those guidelines had effect at the time of the approval)”.
(12) In section 294A(8)20—
(a)
(a) in the definition of “entering a new product or geographical market”, after “(General block exemption Regulation)” insert “as it had effect in the United Kingdom immediately before IP completion day”;
(b)
(b) in the definition of “first commercial sale” for “(as those guidelines may be amended or replaced from time to time)” substitute “(as those guidelines had effect in the United Kingdom immediately before IP completion day)”.
(13) In section 307A21after “30 December 2003” insert “, except that references in that Framework to building in the Union are to be read as including building in the United Kingdom”.
5.—(1) The Corporation Tax Act 200922is amended as follows.
(2) In section 1123(6) for “(as amended from time to time)” substitute “as it had effect in the UK immediately before IP completion day”.
(3) In section 1217KC(3)23—
(a)
(a) for paragraph (a) substitute—
“(a)
“(a) was in force under Article 1 of Council Regulation (EC) No 994/9824immediately before IP completion day, and”;
(b)
(b) in paragraph (b) for “makes” substitute “made”.
(4) In section 1217RJ25after “with the internal market” insert “(as that Regulation had effect...
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