EGL74000 | Administration of EGL: treatment of EGL liability for CT purposes

F(2)A23/S310 makes clear that amounts of EGL payable are not to be deducted when calculating profits for the purposes of CT. It also provides that amounts paid between companies to meet or reimburse a payment of the levy are neither taxable nor allowable for CT purposes. For example, in a group context the lead company or the company responsible for making payments under a group payment arrangement may recharge the various companies the amount of EGL attributable to their electricity sales. Such recharges are to be ignored when calculating profits chargeable to CT, such as trading income or expenses of management.