Finance (No. 3) Bill (HC Bill 200)

5 In paragraph 42 (amount payable by way of levy), before sub-paragraph (2)
35insert—

(1B) Sub-paragraph (1) does not apply to a taxable supply subject to the
carbon price support rates (see paragraph 42A).

6 After paragraph 42 insert—

42A (1) This paragraph applies if a taxable supply is subject to the carbon
40price support rates.

Finance (No. 3) BillPage 357

(2) A supply is subject to the carbon price support rates if—

(a) it is a supply of a taxable commodity, apart from
electricity, to a person to be used by that person in
producing electricity, and

(b) 5it is not within sub-paragraph (3).

(3) A supply is within this sub-paragraph if it is a supply of a taxable
commodity to a person who intends to cause the commodity to be
used in—

(a) a fully exempt combined heat and power station, or

(b) 10a partly exempt combined heat and power station,

in producing any outputs of the station.

(4) The amount payable by way of levy on the taxable supply is the
amount ascertained by applying the relevant carbon price support
rate; and the levy payable on a fraction of a quantity of a
15commodity is that fraction of the levy payable on that quantity of
the commodity.

(5) The carbon price support rates are as follows.

Taxable commodity
supplied
Carbon price support
rate
Gas supplied by a gas
utility or any gas
supplied in a gaseous
state that is of a kind
supplied by a gas
utility
20£0.00091 per kilowatt
hour



25
Any petroleum gas, or
other gaseous
hydrocarbon,
supplied in a liquid
state
£0.01460 per kilogram



30
Any other taxable
commodity (apart
from electricity)
£0.01188 per kilogram

(6) The Commissioners may by regulations make provision for giving
35effect to this paragraph.

(7) Regulations under sub-paragraph (6) may, in particular, include
provision for determining whether or not a taxable supply is
subject to the carbon price support rates.

7 In paragraph 101 (civil penalties: incorrect certificates), in sub-paragraph
40(2)(a)—

(a) omit the “or” after sub-paragraph (ii), and

(b) omit the “and” at the end of sub-paragraph (iv) and after that sub-

Finance (No. 3) BillPage 358

paragraph insert or

(v) a taxable supply (or taxable supplies)
subject to the carbon price support rates,
and.

8 (1) 5Subject to what follows, the amendments made by paragraphs 1 to 7 above
have effect in relation to supplies treated as taking place on or after 1 April
2013.

(2) Sub-paragraph (3) applies to a supply to a person (“the customer”) which—

(a) is of the description mentioned in paragraph 26(1)(b) of Schedule 6
10to FA 2000 (gas in gaseous state), and

(b) is not treated as taking place before 23 March 2011.

(3) The amendments made by paragraphs 1 to 7 above have effect in relation to
the gas supplied so far as it is actually supplied to the customer on or after 1
April 2013.

9 (1) 15This paragraph applies for the purposes of Schedule 6 to FA 2000 if—

(a) an invoice is issued, or a payment is received, before 1 April 2013 in
respect of the supply to a person (“the customer”) of a taxable
commodity,

(b) the supply is not of the description mentioned in paragraph 26(1)(b)
20of Schedule 6 (gas in gaseous state),

(c) if the supply were to be treated as taking place on 1 April 2013, it
would be a taxable supply subject to the carbon price support rates
(see paragraph 42A of Schedule 6 as inserted by paragraph 6 above),

(d) a quantity of the taxable commodity is not delivered to the customer
25before 1 April 2013, and

(e) the invoicing or payment in advance of delivery is not acceptable
normal practice.

(It does not matter whether the invoice mentioned in paragraph (a) is, or is
not, a climate change levy accounting document.)

(2) 30If the supply would otherwise be treated as taking place before 1 April 2013,
and not be a taxable supply, the supply is treated as taking place on that
date.

(3) The quantity of the taxable commodity treated as supplied on 1 April 2013
is the quantity to which sub-paragraph (1)(d) applies.

(4) 35For the purposes of this paragraph invoicing or payment in advance of
delivery is “acceptable normal practice” if—

(a) the supply is of a kind in the case of which it is normal practice for
invoices to be issued, or payments to be made, in respect of taxable
commodities before they are delivered to the person (“the
40customer”) to whom they are being supplied,

(b) the practice does not involve issuing invoices, or making payments,
more than 15 weeks in advance of the taxable commodities, in
respect of which the invoice is issued or payment is made, being
delivered to the customer, and

(c) 45the advance invoicing or payment is in accordance with that practice.

(5) This paragraph does not apply in relation to supplies treated as taking place
before 23 March 2011.

Finance (No. 3) BillPage 359

Section 82

SCHEDULE 21 Prevention of SDLT avoidance

Introduction

1 Part 4 of FA 2003 (stamp duty land tax) is amended as follows.

5Alternative property finance

2 In section 45 (contract and conveyance: effect of transfer of rights), in
subsection (3) for the words from “subsection (3)” to the end substitute “any
of sections 71A to 73 (which relate to alternative property finance).”

3 (1) Omit sections 71A(8), 72(7), 72A(8) and 73(5)(a) (which contain definitions of
10“financial institution” for the purposes of provisions relating to alternative
property finance).

(2) After section 73B insert—

73BA Meaning of “financial institution”

(1) In sections 71A to 73B “financial institution” has the meaning given
15by section 564B of the Income Tax Act 2007.

(2) For this purpose section 564B(1) applies as if paragraph (d) were
omitted.

Exchanges

4 (1) Paragraph 5 of Schedule 4 (chargeable consideration: exchanges) is
20amended as follows.

(2) In sub-paragraph (3)—

(a) for paragraph (a)(i) and (ii) substitute—

(i) the amount determined under sub-
paragraph (3A) in respect of the acquisition,
25or

(ii) if greater, the amount which would be the
chargeable consideration for the acquisition
ignoring paragraph 5;, and

(b) for paragraph (b)(i) and (ii) substitute—

(i) 30the amount determined under sub-
paragraph (3A) in respect of that
acquisition, or

(ii) if greater, the amount which would be the
chargeable consideration for that
35acquisition ignoring paragraph 5;.

(3) After that sub-paragraph insert—

(3A) The amount mentioned in sub-paragraph (3)(a)(i) and (b)(i) is—

(a) the market value of the subject-matter of the acquisition,
and

(b) 40if the acquisition is the grant of a lease at a rent, that rent.