101Shortfalls may be carried forward

101 Shortfalls may be carried forward

101 Shortfalls may be carried forward

(1) A scheme participant may elect to carry forward a shortfall, or part of a shortfall, for a compliance period to the next compliance period in accordance with this clause.

(2) If a scheme participant elects to carry forward a shortfall, or part of a shortfall, the amount carried forward is not subject to a shortfall penalty for the compliance period to which the shortfall relates.

(3) The maximum amount of a shortfall that may be carried forward to the 2023–2024 compliance period by a scheme participant is—

(a) 20% of the scheme participant’s individual certificate target for the 2022–2023 compliance period, or

(b) another amount prescribed by the regulations.

(4) The maximum amount of a shortfall that may be carried forward to another compliance period by a scheme participant is—

(a) 10% of the scheme participant’s individual certificate target in the previous period, or

(b) another amount prescribed by the regulations.

(5) A shortfall, or part of a shortfall, may be carried forward to the next compliance period only.

(6) A shortfall, or part of a shortfall, for the 2049–2050 compliance period cannot be carried forward.

(7) A scheme participant who elects to carry forward a shortfall, or part of a shortfall, to the next compliance period is not prevented from electing to carry forward a shortfall, or part of a shortfall, for that next compliance period to the following compliance period.

(8) For the purposes of this Part, a shortfall, or part of a shortfall, for a compliance period that is carried forward to the next period is a carried forward shortfall.