Telecommunications Act 1984
c. 12
39.-(1) During the transitional period it shall be the duty of
British Telecommunications to discharge the excepted liabilities as
they fall to be discharged.
(2) Subject to sub-paragraph (3) below, the excepted liabilities
shall be discharged, and any expenses incurred by British Telecommunications under this paragraph shall be met, out of sums received
by British Telecommunications in right of or on the disposal of such
debentures of the successor company as the Secretary of State, with
the approval of the Treasury, may transfer to British Telecommuni-
cations (in this paragraph referred to as
tures ").
" the
transferred deben-
(3) British Telecommunications may not dispose of any of the transferred debentures without the consent of the Secretary of State given
with the approval of the Treasury.
(4) Where so much of any sums so received as is held by British
Telecommunications on any day exceeds the aggregate for that day
of-
(a) any excepted liability falling to be discharged ; and
(b) any expenses falling to be met under this paragraph,
the excess shall be applied by British Telecommunications in such
manner as the Secretary of State, with the approval of the Treasury,
; and a direction under this sub-paragraph may require
the whole or any part of the excess to be paid into the Consolidated
Fund.
may direct
(5) Where so much of any sums so received as is held by British
Telecommunications on any day falls short of the aggregate for that
day
of-
(a) any excepted liability falling to be discharged ; and
(b) any expenses falling to be met under this paragraph,
the deficiency shall be made good by the Secretary of State out of
money provided by Parliament.
(6) During the transitional period British Telecommunications
shall, as respects its duties under this paragraph, keep proper
accounts and proper records in relation thereto and shall, as soon
as may be after the end of each financial year(a) prepare a report on the performance by it during that year
of those duties ; and
(b) transmit the report to the Secretary of State who shall consider it and lay copies of it before each House of Parliament.
(7) British Telecommunications shall be exempt from income tax
and corporation tax in respect
(a) income accruing to it in right of the transferred debentures ;
and
(b) chargeable gains accruing to it on the disposal of those
debentures;
and in so far as the exemption conferred by this sub-paragraph calls
for repayment of tax, effect shall be given thereto by means of a
claim.
of-
207
Scx.5