SCHEDULE 29 continued PART 3 continued
(c) for the table substitute—
| Taxable commodity supplied | Rate at which levy payable if supply is not a reduced-rate supply or a supply for use in scrap metal recycling |
|---|---|
| Electricity | £0.00524 per kilowatt hour |
| Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility | £0.00182 per kilowatt hour |
| Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state | £0.01172 per kilogram |
| Any other taxable commodity | £0.01429 per kilogram”. |
21 In paragraph 43B(1) of Schedule 6 to FA 2000 (supplies for use in scrap metal recycling and reduced-rate supplies: deemed supply) (as inserted by paragraph 11 above), for paragraph (b) substitute—
“(b) the original supply was made on the basis that it was, to any extent—
(i) a supply for use in scrap metal recycling,
(ii) a reduced-rate supply of electricity, or
(iii) a reduced-rate supply of any other taxable commodity,”.
22 In section 79 of FA 2011 (which provides for a lower rate of climate change levy for Northern Ireland gas supplies treated as taking place before 1 November 2013), in subsection (3)(a), for “£0.00062” substitute “£0.00064”.
23 The amendments made by paragraphs 20 to 22 have effect in relation to supplies treated as taking place on or after 1 April 2013.
Section 205
1 Schedule 6 to FA 2000 (climate change levy) is amended as follows.
2 In paragraph 44(1)(a), (2A) and (2C) (definition of “reduced-rate” supply) for “Secretary of State” substitute “Administrator”.
3 In paragraph 45(1) (variation of certificates under paragraph 44) for “Secretary of State” substitute “Administrator”.
4 In paragraph 45B(2) and (6) (removal of reduced rate) for “Secretary of State” (wherever occurring) substitute “Administrator”.
5 In the cross-heading before paragraph 47 omit “with Secretary of State”.
6 In paragraph 47(1) (definition of “climate change agreement”: direct agreements)—
(a) in paragraph (a), for “Secretary of State” substitute “Administrator”,
(b) omit the “and” after paragraph (f),
(c) in paragraph (g)—
(i) for “five-yearly” substitute “seven-yearly”, and
(ii) after “Secretary of State” insert “or the Administrator”, and
(d) after paragraph (g) insert “, and
(h) containing any terms required by regulations falling within paragraph 52E.”
7 (1) Paragraph 48 (definition of “climate change agreement”: combination of umbrella and underlying agreements) is amended as follows.
(2) In sub-paragraph (3)(c)—
(a) for “five-yearly” substitute “seven-yearly”, and
(b) after “Secretary of State” insert “or the Administrator”.
(3) In sub-paragraph (4)—
(a) in paragraph (a), for “Secretary of State” substitute “Administrator”,
(b) omit the “and” after paragraph (c), and
(c) after paragraph (d) insert “, and
(e) containing any terms required by regulations falling within paragraph 52E.”
(4) In sub-paragraph (5)—
(a) for paragraph (b) substitute—
“(b) entered into with the Administrator,”,
(b) omit paragraph (c),
(c) omit the “and” after paragraph (d), and
(d) after paragraph (e) insert “, and
(f) containing any terms required by regulations falling within paragraph 52E.”
8 (1) Paragraph 49 (supplemental provision relating to climate change agreements) is amended as follows.
(2) In sub-paragraph (3) for “Secretary of State” (wherever occurring) substitute “Administrator”.
(3) In sub-paragraph (7) for “paragraphs 47 and 48 and this paragraph” substitute “this Part of this Schedule”.
(4) In sub-paragraph (8)—
(a) for “Secretary of State” substitute “Administrator”,
(b) after paragraph (a) insert “or”, and
(c) omit paragraph (c) and the “or” before it.
9 After paragraph 52 insert—
52A (1) In this Part of this Schedule references to “the Administrator” are to the body appointed as such by regulations made by the Secretary of State.
(2) The body appointed must be a body established by an enactment (as defined in section 97 of the Climate Change Act 2008).
(3) Different bodies may be appointed in relation to facilities in different parts of the United Kingdom.
52B (1) The Administrator is responsible for administering the scheme set out in paragraphs 44 to 52.
(2) This covers (in particular) the administration of climate change agreements.
(3) In this Part of this Schedule “administrative function” means—
(a) the Administrator’s function imposed by sub-paragraph (1), or
(b) any other power or duty of the Administrator conferred or imposed by or under a provision of this Part of this Schedule.
52C (1) The Administrator may require persons falling within sub-paragraph (2) to pay to the Administrator such charges as may from time to time be specified to cover any costs incurred by the Administrator in carrying out any administrative function.
(2) The persons falling within this sub-paragraph are parties or potential or former parties to agreements falling within paragraph 47 or to umbrella or underlying agreements within the meaning of paragraph 48.
(3) In sub-paragraph (1) “specified” means specified in, or determined in accordance with, a scheme made by the Administrator for the purposes of this paragraph.
(4) A scheme may provide for the times at which, and the manner in which, charges are to be paid.
(5) Paragraph 146(7) applies in relation to the Administrator’s power to make a scheme under this paragraph as it applies in relation to a power to make regulations under this Schedule.
(6) A scheme may revoke or vary any previous scheme.
(7) A scheme may be made only with the consent of the Secretary of State.
(8) Charges received by the Administrator must be paid to the Secretary of State who must pay them into the Consolidated Fund.
(9) Sub-paragraph (8) does not apply if the Administrator is the Environment Agency.
52D (1) The Secretary of State may by regulations make provision about the administration of the scheme set out in paragraphs 44 to 52.
(2) Sub-paragraph (1) covers (in particular)—
(a) provision about climate change agreements, and
(b) provision about how the Administrator is to carry out any administrative function.
(3) Without prejudice to the generality of sub-paragraphs (1) and (2), regulations may contain any provision falling within paragraph 52E or 52F.
(4) Regulations may—
(a) require the Administrator to obtain the Secretary of State’s consent to any course of action,
(b) confer or impose other powers or duties on the Secretary of State or the Administrator, or
(c) confer or impose powers or duties on other persons.
(5) The Secretary of State may give directions to the Administrator about how the Administrator is to carry out any administrative function (and this power to give directions includes power to vary or revoke directions previously given).
(6) The Secretary of State may issue guidance to the Administrator about how the Administrator is to carry out any administrative function; and the Administrator must have regard to any guidance issued.
52E (1) Regulations may—
(a) specify terms which must be included in agreements falling within paragraph 47 or in umbrella or underlying agreements within the meaning of paragraph 48, and
(b) confer power on the Administrator to vary such agreements to take account of any changes in the terms specified under paragraph (a) from time to time.
(2) The terms which may be specified under sub-paragraph (1)(a)include (in particular) terms falling within paragraph 49(4) under which the absence (or partial absence) of any progress towards meeting any targets for a facility may be made up for by the payment to the Administrator of a sum specified in, or determined in accordance with, the regulations.
(3) Sums received by the Administrator must be paid to the Secretary of State who must pay them into the Consolidated Fund.
52F (1) Regulations may confer power on the Administrator—
(a) to impose a financial penalty of a specified amount on a person who, as a representative of a facility to which a climate change agreement applies, contravenes a term of the agreement, and
(b) to terminate, with effect from a specified date, the agreement so far as it applies to the facility if—
(i) the financial penalty is not paid to the Administrator within a specified period, or
(ii) the contravention is not remedied to the Administrator’s satisfaction within a specified period.
(2) Regulations may also confer power on the Administrator to terminate, with effect from a specified date and without first imposing a financial penalty, a climate change agreement so far as it applies to a facility if there is a contravention of the agreement by a person who is a representative of the facility.
(3) Neither sub-paragraph (1)(a) nor sub-paragraph (2) covers a failure to meet, or to make progress towards meeting, any targets set for a facility under a climate change agreement.
(4) If regulations falling within sub-paragraph (1) or (2) are made, the regulations must also—
(a) confer rights of appeal against a decision taken by the Administrator to impose a financial penalty or to terminate a climate change agreement (as the case may be), and
(b) specify the court, tribunal or person who is to hear and determine the appeal.
(5) The Secretary of State may be specified for the purposes of sub-paragraph (4)(b).
(6) Penalties received by the Administrator must be paid to the Secretary of State who must pay them into the Consolidated Fund.
(7) Regulations may confer power on the Administrator to terminate, with effect from a specified date, a climate change agreement so far as it applies to a facility in specified circumstances not involving a contravention of the agreement.
(8) In this paragraph—
“representative” has the meaning given by paragraph 47(2), and
“specified” means specified in, or determined in accordance with, the regulations.
(9) Sub-paragraph (10) or (11) (as the case may be) applies if a climate change agreement is terminated in respect of a facility before the start of, or during, a period specified for the facility in such a certificate as is mentioned in paragraph 44(1).
(10) If the termination is before the start of the specified period, the Administrator must, in respect of the facility, give a variation certificate within paragraph 45(1)(a) in relation to the specified period.
(11) If the termination is during the specified period, the Administrator must, in respect of the facility, give a variation certificate within paragraph 45(1)(b) in relation to the specified period specifying the day of the termination.”
10 In paragraph 137(1) (disclosure of information) after paragraph (f) insert—
“(fa) the Administrator (within the meaning of Part 4 of this Schedule);”.
11 The amendments made by this Schedule have no effect in relation to climate change agreements entered into with the Secretary of State before the day on which this Act is passed.
Section 205
1 Schedule 6 to FA 2000 (climate change levy) is amended as follows.
2 In paragraph 4(2)(b) (definition of “taxable supply”) after “24” insert “, 42C, 42D”.
3 (1) Paragraph 6 (supplies of gas) is amended as follows.
(2) In sub-paragraph (1A) for “but not sub-paragraph” substitute “or”.
(3) In sub-paragraph (2A) after “24” insert “, 42C, 42D”.
4 After paragraph 14(5) (exemption: supplies to electricity producers) insert—
“(6) A supply of a taxable commodity other than electricity to a person is exempt from the levy if—
(a) the commodity is to be used by that person in producing electricity in a generating station,
(b) the generating station is neither a fully exempt combined heat and power station nor a partly exempt combined heat and power station, and
(c) the capacity of the generating station for producing electricity is no more than 2 megawatts.
(7) If the generating station mentioned in sub-paragraph (6)(a) is one of a number of generating stations (which may include fully or partly exempt combined heat and power stations) which—
(a) are situated in the United Kingdom, and
(b) are owned by P or persons connected with P,
the reference to the capacity of the generating station in sub-paragraph (6)(c) is to be read as a reference to the capacity of all those generating stations taken together.
(8) For the purposes of sub-paragraph (7)(b)—
(a) “P” is the person who owns the generating station mentioned in sub-paragraph (6)(a), and
(b) section 1122 of the Corporation Tax Act 2010 (“connected” persons) applies.
(9) A supply of coal to a person is exempt from the levy if—
(a) the coal is to be used by that person in producing electricity in a generating station which is neither a fully exempt combined heat and power station nor a partly exempt combined heat and power station, and
(b) the coal has a gross calorific value of no more than 15 gigajoules per tonne.”
5 (1) Paragraph 15 (exemption: supplies to combined heat and power stations) is amended as follows.
(2) In sub-paragraph (1)—
(a) for “a taxable commodity” substitute “electricity”,
(b) in paragraph (a), for “commodity” substitute “electricity”, and
(c) omit the final sentence.
(3) In sub-paragraph (2)—
(a) in paragraph (a), for “a taxable commodity” substitute “electricity”, and
(b) in paragraph (b), for “commodity” substitute “electricity”.
(4) In sub-paragraph (3) for “a taxable commodity” substitute “electricity”.
(5) After sub-paragraph (3) insert—
“(3A) A supply of a taxable commodity other than electricity to a person is exempt from the levy if—
(a) that person intends to cause the commodity to be used in—
(i) a fully exempt combined heat and power station, or
(ii) a partly exempt combined heat and power station,
in producing any outputs of the station, and
(b) the capacity of the station for producing electricity is no more than 2 megawatts.
(3B) If the station mentioned in sub-paragraph (3A)(a) is one of a number of generating stations (which may include stations which are neither fully exempt combined heat and power stations nor partly exempt combined heat and power stations) which—
(a) are situated in the United Kingdom, and
(b) are owned by P or persons connected with P,
the reference to the capacity of the station in sub-paragraph (3A)(b) is to be read as a reference to the capacity of all those generating stations taken together.
(3C) For the purposes of sub-paragraph (3B)(b)—
(a) “P” is the person who owns the station mentioned in sub-paragraph (3A)(a), and
(b) section 1122 of the Corporation Tax Act 2010 (“connected” persons) applies.
(3D) A supply of coal to a person is exempt from the levy if—
(a) that person intends to cause the coal to be used in—
(i) a fully exempt combined heat and power station, or
(ii) a partly exempt combined heat and power station,
in producing any outputs of the station, and
(b) the coal has a gross calorific value of no more than 15 gigajoules per tonne.”
(6) Before sub-paragraph (4)(a) insert—
“(za) outputs” has the meaning given by paragraph 148(9);”.
6 After paragraph 15 insert—
“15A (1) This paragraph applies to a supply of a taxable commodity mentioned in sub-paragraph (2) to a person if that person intends to cause the commodity to be used in—
(a) a fully exempt combined heat and power station, or
(b) a partly exempt combined heat and power station,
in producing any outputs of the station.
(2) The taxable commodities referred to in sub-paragraph (1) are—
(a) gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility;
(b) any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state;
(c) coal which has a gross calorific value of more than 15 gigajoules per tonne.
(3) The Treasury may by regulations provide that the non-electricity part of a supply to which this paragraph applies is exempt from the levy to the extent determined in accordance with the regulations.
(4) In sub-paragraph (3) the reference to “the non-electricity part” of a supply is to the supply excluding so much of it as is referable to the production of electricity in the station, as determined in accordance with regulations under paragraph 42A(5B).
(5) Regulations under sub-paragraph (3) may, in particular, include—
(a) provision in respect of the calculations, measurements, data and procedures to be made or used in determining the extent to which a supply is exempt;
(b) provision that, so far as framed by reference to any document, is framed by reference to that document as from time to time in force.
(6) The first regulations made under sub-paragraph (3) may have retrospective effect.
(7) If the exemption of a supply to any extent under this paragraph is part of an aid scheme within Article 25 of Commission Regulation (EC) No. 800/2008, paragraph 42(4) cites the title and publication reference of that Regulation for the purpose of complying with Article 3(1) of that Regulation.”
7 After paragraph 24(4) (deemed supplies) insert—
“(4A) Sub-paragraph (4B) applies if the supply mentioned in sub-paragraph (1A) or (1B) (or a part of the supply) would have been, or is determined to have been, a taxable supply subject to the carbon price support rates (see paragraph 42A).
(4B) The deemed taxable supply under sub-paragraph (3) (or the deemed taxable supply so far as it covers the part in question of the supply mentioned in sub-paragraph (1A) or (1B)) is to be subject to the carbon price support rates.”
8 After paragraph 26(3) (electricity or gas: supply when climate change levy accounting document issued) insert—
“(3A) Sub-paragraphs (2) and (3) are subject to paragraph 28A.”
9 After paragraph 28 insert—
28A (1) This paragraph applies to supplies of gas where—
(a) the gas is supplied in a gaseous state and is of a kind supplied by a gas utility,
(b) the supply by which the gas is supplied is a taxable supply, and
(c) the person liable to account for the levy on that supply is the person to whom the supply is made.
(2) Where this paragraph applies, a supply is treated as taking place when the gas is actually supplied to that person.”
10 After paragraph 29(7) (electricity or gas: special utility schemes) insert—
“(8) This paragraph does not apply in relation to supplies of gas where paragraph 28A applies.”
11 In paragraph 34 (other commodities: deemed supplies)—
(a) in sub-paragraph (1)(b), after “24” insert “, 42C, 42D”, and
(b) in sub-paragraph (4), after “paragraph” insert “42C, 42D or”.
12 In paragraph 39(1)(c) (regulations as to time of supply), after “24” insert “, 42C, 42D”.
13 (1) Paragraph 40 (persons liable to account for levy) is amended as follows.
(2) In sub-paragraph (1) for “(2) or (3)” substitute “(2), (3), (4) or (5)”.
(3) After sub-paragraph (3) insert—
“(4) In the case of a taxable supply subject to the carbon price support rates (see paragraph 42A), the person liable to account for the levy charged on the supply is the person to whom the supply is made.
(5) In the case of a taxable supply to a person who intends to cause the commodity supplied to be used in—
(a) a fully exempt combined heat and power station, or
(b) a partly exempt combined heat and power station,
in producing any outputs of the station, the person liable to account for the levy charged on the supply is the person to whom the supply is made.”
14 (1) Paragraph 42A (supplies subject to the carbon price support rates) is amended as follows.
(2) In sub-paragraph (2)(a) for “, apart from electricity,” substitute “mentioned in the Table in sub-paragraph (5)”.
(3) After sub-paragraph (2) insert—
“(2A) A supply within sub-paragraph (3) is subject to the carbon price support rates so far as it is referable to the production of electricity in the station.”
(4) In sub-paragraph (3) after “taxable commodity” insert “mentioned in the Table in sub-paragraph (5)”.
(5) In sub-paragraph (5), in the Table—
(a) in the first column of the final row, for “Any other taxable commodity (apart from electricity)” substitute “Coal”, and
(b) in the second column of that row, for “£0.01188 per kilogram” substitute “£0.44264 per gigajoule”.
(6) After sub-paragraph (5) insert—
“(5A) Sub-paragraph (4) needs to be read with paragraph 42B.
(5B) For the purposes of sub-paragraph (2A) the extent to which a supply is referable to the production of electricity in a station is to be determined in accordance with regulations made by the Treasury.
(5C) Regulations under sub-paragraph (5B) may, in particular, include—
(a) provision in respect of the calculations, measurements, data and procedures to be made or used;
(b) provision that, so far as framed by reference to any document, is framed by reference to that document as from time to time in force.”
(7) In sub-paragraph (6) after “paragraph” insert “and paragraph 42B”.
(8) For sub-paragraph (7) substitute—
“(7) Regulations under sub-paragraph (6) may, in particular, include provision—
(a) for determining whether or not a taxable supply is subject to the carbon price support rates,
(b) if the supply is subject to those rates, for determining whether or not paragraph 42B(2) applies in relation to the supply, and
(c) if paragraph 42B(2) applies in relation to the supply, for determining the reduction in the relevant carbon price support rate.”
15 After paragraph 42A insert—
“42B (1) Sub-paragraph (2) applies for the purposes of paragraph 42A(4) if—
(a) the taxable supply is a supply of a taxable commodity to be used for producing electricity in a generating station, and
(b) in the calendar year in which the supply is made, carbon capture and storage technology is operated in relation to carbon dioxide generated by the generating station in producing electricity.
(2) In relation to the supply, only C% of the relevant carbon price support rate is to be applied (instead of the full rate).
(3) “C%” is 100% minus the generating station’s carbon capture percentage for the calendar year.
(4) The generating station’s “carbon capture percentage” for the calendar year is the percentage of the station’s generated carbon dioxide for that year which, through the operation of the carbon capture and storage technology, is—
(a) captured, and
(b) then disposed of by way of permanent storage.
(5) The generating station’s “generated carbon dioxide” for the calendar year is the amount of carbon dioxide generated in the year by the station in producing electricity through the burning of taxable commodities mentioned in the Table in paragraph 42A(5).
(6) In this paragraph “carbon capture and storage technology” and “carbon dioxide” have the meaning given by section 7(3) and (4) of the Energy Act 2010.
(7) Sub-paragraph (8) applies for the purposes of sub-paragraph (4) in relation to any carbon dioxide if—
(a) the carbon dioxide is captured but then leaks out and therefore is not disposed of by way of permanent storage, but
(b) the leak does not occur—
(i) on the land on which the generating station is situated,
(ii) on any other land under the control of the station’s operator or a person connected with the station’s operator, or
(iii) from any pipeline or other facility or installation which is operated by the station’s operator or a person connected with the station’s operator.
Section 1122 of the Corporation Tax Act 2010 (“connected” persons) applies for the purposes of paragraph (b).
(8) The carbon dioxide is to be treated as if it had been disposed of by way of permanent storage.
(9) If the percentage mentioned in sub-paragraph (4) is not a whole number, it is to be rounded to the nearest whole number (taking 0.5% as nearest to the next whole number).
42C (1) This paragraph applies if—
(a) a taxable supply (“the original supply”) subject to the carbon price support rates has been made to any person (“the recipient”),
(b) the original supply was made on the basis that paragraph 42B(2) applied in relation to the original supply, and
(c) it is later determined—
(i) that paragraph 42B(2) did not apply in relation to the original supply, or
(ii) that the reduction given, by virtue of paragraph 42B(2), in the amount payable by way of levy on the original supply was too much.
(2) For the purposes of this Schedule—
(a) the recipient is deemed to make a taxable supply to itself of the taxable commodity in question, and
(b) the amount payable by way of levy on that deemed supply is—
(i) the total amount payable on the original supply on the basis of the later determination mentioned in sub-paragraph (1)(c), less
(ii) the amount previously determined to be payable on the original supply.
42D (1) This paragraph applies if—
(a) a taxable supply (“the original supply”) is made to a person (“the recipient”) on the basis that it is, or is to some extent, a taxable supply subject to the carbon price support rates, and
(b) it is later determined that that basis was incorrect and, in consequence, the amount previously determined to be payable by way of levy on the original supply was too low.
(2) For the purposes of this Schedule—
(a) the recipient is deemed to make a taxable supply to itself of the taxable commodity in question, and
(b) the amount payable by way of levy on that deemed supply is—
(i) the total amount payable on the original supply on the basis of the later determination mentioned in sub-paragraph (1)(b), less
(ii) the amount previously determined to be payable on the original supply.”
16 After paragraph 62(1)(b) (tax credits) insert—
“(ba) after a taxable supply subject to the carbon price support rates (see paragraph 42A) is made on the basis that paragraph 42B(2) does not apply in relation to the supply, it is determined that paragraph 42B(2) does apply;
(bb) after a taxable supply subject to the carbon price support rates is made on the basis that paragraph 42B(2) applies in relation to the supply, it is determined that the reduction given, by virtue of paragraph 42B(2), in the amount payable by way of levy on the supply was too little;
(bc) after a taxable supply is made on the basis that it is, or is to some extent, subject to the carbon price support rates, it is determined that that basis was incorrect and, in consequence, the amount previously determined to be payable by way of levy on the supply was too much;”.
17 The amendment of paragraph 101(2) of Schedule 6 to FA 2000 (civil penalties: incorrect certificates) made by paragraph 7 of Schedule 20 to FA 2011 is not to have effect; and paragraph 7 of Schedule 20 to FA 2011 is omitted.
18 (1) Paragraph 8 of Schedule 20 to FA 2011 (commencement) is amended as follows.
(2) In sub-paragraphs (1) and (3), for “7” substitute “6”.
(3) In sub-paragraph (2), omit paragraph (b) and the “and” before it.
19 (1) Paragraph 8 of Schedule 20 to FA 2011 (as amended by paragraph 18 above) applies in relation to the amendments made by paragraphs 1 to 16 above as it applies in relation to the amendments made by paragraphs 1 to 6 of that Schedule.
(2) In paragraph 9(1)(c) of Schedule 20 to FA 2011 the reference to paragraph 42A of Schedule 6 to FA 2000 is to be read as a reference to paragraph 42A as amended by paragraph 14 above.
(3) In relation to a supply within paragraph 42A(3) of Schedule 6 of FA 2000 (as amended by paragraph 14 above), paragraph 9(5) of Schedule 20 to FA 2011 applies as if for “23 March 2011” there were substituted “21 March 2012”.
20 (1) In paragraph 42A(5) of Schedule 6 to FA 2000 (supplies subject to the carbon price support rates) (as amended by paragraph 14 above)—
(a) for “£0.00091 per kilowatt hour” substitute “£0.00175 per kilowatt hour”,
(b) for “£0.01460 per kilogram” substitute “£0.02822 per kilogram”, and
(c) for “£0.44264 per gigajoule” substitute “£0.85489 per gigajoule”.
(2) The amendments made by this paragraph have effect in relation to supplies treated as taking place on or after 1 April 2014.
21 (1) Paragraph 20A of Schedule 6 to FA 2000 (climate change levy: exemption in relation to electricity produced in combined heat and power stations) is amended as follows.
(2) In sub-paragraph (1)—
(a) omit the “and” after paragraph (c), and
(b) after paragraph (d) insert “; and
(e) the electricity is actually supplied before 1 April 2018.”
(3) In sub-paragraph (4)(a)—
(a) in sub-paragraph (i), after “station” insert “before 1 April 2013”, and
(b) in sub-paragraph (ii), after “station”, in the first place it occurs, insert “before 1 April 2013”.
22 (1) The following repeals are made in consequence of paragraph 21.
(2) In Schedule 6 to FA 2000—
(a) in paragraph 5(3), omit “20B(6)(a),”,
(b) omit paragraphs 20A and 20B,
(c) in paragraph 24(2)—
(i) omit “or 20A,”
(ii) omit “or in combined heat and power stations”, and
(iii) omit “or 20B”, and
(d) omit paragraph 149A.
(3) Omit sections 123 and 124 of FA 2002.
(4) Omit section 193(3) and (5) of FA 2003.
(5) The repeals made by this paragraph come into force on the day appointed by the Treasury by order made by statutory instrument.
Section 207
1 After Schedule 1 to IHTA 1984 insert—
1 (1) This Schedule applies if—
(a) a chargeable transfer is made (under section 4) on the death of a person (“D”), and
(b) all or part of the value transferred by the chargeable transfer is chargeable to tax at a rate other than nil per cent.
(2) The part of the value transferred that is chargeable to tax at a rate other than nil per cent is referred to in this Schedule as “TP”.
2 (1) If the charitable giving condition is met—
(a) the tax charged on the part of TP that qualifies for the lower rate of tax is to be charged at the lower rate of tax, and
(b) the tax charged on any remaining part of TP is to be charged at the rate at which it would (but for this Schedule) have been charged on the whole of TP in accordance with section 7.
(2) For the purposes of this paragraph, the charitable giving condition is met if, for one or more components of the estate (taking each component separately), the donated amount is at least 10% of the baseline amount.
(3) Paragraph 3 defines the components of the estate.
(4) Paragraphs 4 and 5 explain how to calculate the donated amount and the baseline amount for each component.
(5) The part of TP that “qualifies for the lower rate of tax” is the part attributable to all the property in each of the components for which the donated amount is at least 10% of the baseline amount.
(6) The lower rate of tax is 36%.
3 (1) For the purposes of paragraph 2, the components of the estate are—
(a) the survivorship component,
(b) the settled property component, and
(c) the general component.
(2) The survivorship component is made up of all the property comprised in the estate that, immediately before D’s death, was joint (or common) property liable to pass on D’s death—
(a) by survivorship (in England and Wales or Northern Ireland),