National Grid 2008 Annual Report Download - page 18

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 27011
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: 20-F, Doc: 1, Page: 12
9/5012.00.00.00Y59930BNY
[A/E] EDGAR 2 *Y59930/012/5*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 27011
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: 20-F, Doc: 1, Page: 12
9/5012.00.00.00Y59930BNY
[A/E] EDGAR 2 *Y59930/012/5*
Table of Contents
Material contracts
As described in Item 6, each of our Executive Directors has a Service Agreement and each Non-executive
Director has a Letter of Appointment.
Apart from these, no contract (other than contracts entered into in the ordinary course of business) has been
entered into by us within the two years immediately preceding the date of this report which is, or may be, material; or
which contains any provision under which any member of National Grid has any obligation or entitlement which is
material to us at the date of this report.
Exchange controls
There are currently no UK laws, decrees or regulations that restrict the export or import of capital, including, but
not limited to, foreign exchange control restrictions, or that affect the remittance of dividends, interest or other
payments to non-UK resident holders of ordinary shares except as otherwise set out in ‘Taxation’ below and except
in respect of the governments of and/or certain citizens, residents or bodies of certain countries (described in
applicable Bank of England Notices or European Union Council Regulations in force as at the date of this
document).
Taxation
The following summary describes the principal United States (“US”) federal income and United Kingdom
(“UK”) tax consequences for a beneficial owner of ADSs or ordinary shares who is:
The summary is not a complete analysis or listing of all the possible tax consequences of ownership, of ADSs or
ordinary shares. It does not discuss special tax rules that may be applicable to certain classes of investors including
traders, collective investment schemes, banks, insurance companies, securities dealers, investors with a ‘functional
currency’ other than the US dollar and any corporation which directly or indirectly controls 10% or more of the
voting share capital of National Grid.
Each investor is urged to consult his or her own tax advisor regarding the tax consequences of the purchase,
ownership and disposition of ADSs or ordinary shares under the laws of the US, the UK and their constituent
j
urisdictions.
The US and the UK signed a convention (the ‘Income Tax Convention’) for the avoidance of double taxation
with respect to income and capital gains on 24 July 2001. The Income Tax Convention entered into force following
the exchange of instruments of ratification on 31 March 2003 and was effective for withholding taxes beginning
1 May 2003. This summary describes the rules of taxation under the Income Tax Convention.
The statements regarding US federal tax laws set out below are based on:
These statements assume that each obligation provided for in or otherwise contemplated by the deposit
agreement entered into by and among National Grid Transco plc (now National Grid plc), the Depositary and the
registered holders of ADRs pursuant to which ADRs have been issued dated as of 21 November 1995 and amended
and restated as of 31 January 2002 and any related agreement will be performed in accordance with its terms.
Beneficial owners of ADSs who are residents or citizens of the United States will be treated as the owners of the
underlying ordinary shares for the purposes of the Code.
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• a citizen or resident of the US,
• a corporation or other entity taxable as a corporation, created or organised under the laws of the US or any
state thereof, or
• a trust or an estate the income of which is subject to US federal income tax without regard to its source and
that holds such shares or ADSs as capital assets.
• the US Internal Revenue Code of 1986, as amended (the “Code”) and regulations issued thereunder, all of
which are subject to change, possibly with retroactive effect, and in part on
• the representations of The Bank of New York as depositary (the ‘Depositary’).