British Energy prepares for 59% corp tax rate
UK's only privately-owned nuclear generator company predicts a hefty corporate tax bill
British Energy has said that its corporate tax rate will be more than double
the UK standard at the end of its financial year.
The UK’s largest electricity producer said that it will be paying an
effective corporate rate of 59% in 2009, after nuclear decommissioning
obligations have been taken into account.
British Energy makes annual Cash Sweep Payments to the government-backed
Nuclear Liabilities Fund. The fund underwrites the costs of decommissioning
British Energy’s nuclear power stations in the event that the FTSE 100 company’s
assets fall short of those liabilities.
‘The forecast full year effective tax rate of 59% is higher than the standard
tax rate of 28% due to the forecast Cash Sweep Payment, accrued only at the year
end, and conversion asset amortisation, which are treated as operating costs,
being disallowable for tax purposes,’ BE said in a
statement to the City.