(a) in paragraph (a), after “if” insert “the person is UK-established and”,
and

(b) in paragraph (b), after “if” insert “the person is UK-established and”.

(3) In sub-paragraph (2), for “and the transferee is not registered under this Act
5at the time of the transfer” substitute “, the transferee is UK-established at
the time of the transfer and the transferee is not registered under this Act at
that time”.

(4) After sub-paragraph (2) insert—

“(2A) In determining the value of a person’s supplies for the purposes of
10sub-paragraph (1)(a) or (2)(a), supplies are to be taken into account
(subject to sub-paragraphs (3) to (7)) whether or not the person
was UK-established when they were made.”

(5) In sub-paragraph (4)(a), after “below,” insert “paragraph 11 of Schedule
1A,”.

(6) 15In sub-paragraph (5), after “below,” insert “paragraph 11 of Schedule 1A,”.

(7) At the end insert—

“(10) A person is “UK-established” if the person has a business
establishment, or some other fixed establishment, in the United
Kingdom in relation to a business carried on by the person.”

12 20In paragraph 3 of that Schedule, at the end of paragraph (b) insert “; or

(c) is not at that time UK-established (see paragraph 1(10)).”

13 Accordingly, in the heading of that Schedule, at the end insert “: uk
establishment”.

14 In paragraph 1 of Schedule 2 (registration in respect of supplies from other
25member States)—

(a) in sub-paragraph (1)(b), after “Schedule 1” insert “or 1A”, and

(b) in sub-paragraph (4), after “Schedule 1,” insert “paragraph 11 of
Schedule 1A,”.

15 In paragraph 1 of Schedule 3 (registration in respect of acquisitions from
30other member States)—

(a) in sub-paragraph (1)(b), after “Schedule 1” insert “, 1A”, and

(b) in sub-paragraph (3), after “Schedule 1,” insert “paragraph 11 of
Schedule 1A,”.

16 In paragraph 1 of Schedule 3A (registration in respect of disposals of assets
35for which a VAT repayment is claimed)—

(a) in sub-paragraph (1), after “Schedule 1,” insert “1A,”, and

(b) in sub-paragraph (2), after “Schedule 1,” insert “paragraph 11 of
Schedule 1A,”.

17 In paragraph 18 of Schedule 3B (supply of electronic services in member
40States: special accounting scheme)—

(a) after “Schedule 1”, in the first place it occurs, insert “or 1A”, and

(b) after “Schedule 1”, in the second place it occurs, insert “or, as the case
may be, 1A”.

Amendments of other Acts

18 In Schedule 41 to FA 2008 (penalties: failure to notify and certain VAT and
excise wrongdoing), in the Table in paragraph 1, after the entry for the
obligations under Schedule 1 to VATA 1994 insert the following entry—

Application

19 The amendments made by this Schedule have effect in relation to supplies
made or to be made on or after 1 December 2012.

Section 202

SCHEDULE 28 15Administration of VAT

1 VATA 1994 is amended as follows.

(1) Section 18B (fiscally warehoused goods: relief) is amended as follows.

(2) In subsection (1)(d) omit “be in such form and”.

(3) In subsection (2)(d) omit “in such form as the Commissioners may by
20regulations specify”.

(4) After subsection (2) insert—

“(2A) A certificate under subsection (1)(d) or (2)(d) must be in such form as
may be specified by regulations or by the Commissioners in
accordance with regulations.”

(1) 25Section 18C (warehouses and fiscal warehouses: services) is amended as
follows.

(2) In subsection (1)(c) omit “, in such a form as the Commissioners may by
regulations specify,”.

(3) After subsection (1) insert—

“(1A) 30A certificate under subsection (1)(c) must be in such form as may be
specified by regulations or by the Commissioners in accordance with
regulations.”

4 In section 35(2) (refund of VAT to persons constructing certain buildings),
for the words following paragraph (c) substitute—

35“as may be specified by regulations or by the Commissioners in
accordance with regulations.”

(1) Section 39(3) (repayment of VAT to those in business overseas) is amended
as follows.

(2) Before paragraph (a) insert—

“(za) for claims to be made in such form and manner as may be
5specified in the scheme or by the Commissioners in
accordance with the scheme;”.

(3) For paragraph (c) substitute—

“(c) for generally regulating—

(i) the time by which claims must be made, and

(ii) 10the methods by which the amount of any repayment
is to be determined and the repayment is to be made.”

(1) Section 48 (VAT representatives) is amended as follows.

(2) For subsection (1B)(c) substitute—

“(c) Council Regulation (EC) No 904/2010 of 7 October 2010 on
15administrative cooperation and combating fraud in the field
of value added tax.”

(3) After subsection (4) insert—

“(4A) Regulations under subsection (4) may require a notification under
that subsection to be made in such form and manner, and to contain
20such particulars, as may be specified in the regulations or by the
Commissioners in accordance with the regulations.”

7 In section 54(6)(a) (farmers etc)—

(a) omit “the form and manner in which”, and

(b) for “is to be made” substitute “to be made in the form and manner
25specified in the regulations or by the Commissioners in accordance
with the regulations”.

8 In Schedule 1 (registration in respect of taxable supplies), in paragraph 17
(notifications)—

(a) after “form” insert “and manner”, and

(b) 30for “as the Commissioners may by regulations prescribe” substitute
“as may be specified in regulations or by the Commissioners in
accordance with regulations.”

9 In Schedule 2 (registration in respect of supplies from other member States),
in paragraph 9 (notifications)—

(a) 35after “form” insert “and manner”, and

(b) for “as the Commissioners may by regulations prescribe” substitute
“as may be specified in regulations or by the Commissioners in
accordance with regulations.”

10 In Schedule 3 (registration in respect of acquisitions from other member
40States), in paragraph 10 (notifications)—

(a) after “form” insert “and manner”, and

(b) for “as the Commissioners may by regulations prescribe” substitute
“as may be specified in regulations or by the Commissioners in
accordance with regulations.”

11 45In Schedule 3A (registration in respect of disposals of assets for which a VAT
repayment is claimed), in paragraph 8 (notifications)—

(a) after “form” insert “and manner”, and

(b) for “as the Commissioners may by regulations prescribe” substitute
“as may be specified in regulations or by the Commissioners in
accordance with regulations.”

(1) 5Paragraph 2 of Schedule 11 (accounting for VAT and payment of VAT) is
amended as follows.

(2) In sub-paragraph (1) (keeping accounts and making returns), insert at the
end “or by the Commissioners in accordance with the regulations.”

(3) In sub-paragraph (3) (statements containing particulars of certain
10transactions)—

(a) for paragraph (b) substitute—

“(b) specified by the Commissioners in accordance with
the regulations,”, and

(b) for “prescribed” substitute “so specified”.

(4) 15In sub-paragraph (3A) (statements containing particulars of certain
supplies)—

(a) for paragraph (b) substitute—

“(b) specified by the Commissioners in accordance with
the regulations,”, and

(b) 20for “prescribed” substitute “so specified”.

(5) In sub-paragraph (3B) (notification of certain events), for “determined by the
Commissioners in accordance with powers conferred by the regulations”
substitute “by the Commissioners in accordance with the regulations”.

(6) In sub-paragraph (4) (notification of acquisition of certain goods), insert at
25the end “or (in the case of the notification requirement) by the
Commissioners in accordance with the regulations”.

(7) In sub-paragraph (5)(a) (further provision about notifications), after
“regulations” insert “or by the Commissioners in accordance with the
regulations”.

13 30In consequence of the amendments made by this Schedule—

(a) in FA 1996, omit section 30(2), and

(b) in FA 2009, omit section 77(2)(d).

Section 205

SCHEDULE 29 Climate change levy

35Part 1 Reduced-rate supplies on or after 1 April 2011: deemed supply

(1) In paragraph 45A(2)(b) of Schedule 6 to FA 2000 (reduced-rate supplies:
deemed supply) for “80” substitute “65”.

(2) The amendment made by this paragraph has effect in relation to a deemed
40supply if the actual supply in question was treated as taking place on or after
1 April 2011.

Part 2 Taxable supplies on or after 1 April 2012 for use in recycling processes

2 Schedule 6 to FA 2000 (climate change levy) is amended as follows.

3 In paragraph 4(2)(b) (definition of taxable supply) for “45A” substitute
5“43B”.

4 In paragraph 5(3) (taxable supplies: deemed supplies of electricity) for “45A”
substitute “43B”.

5 In paragraph 6(2A) (taxable supplies: deemed supplies of gas) for “45A”
substitute “43B”.

6 10In paragraph 14(3A)(a) (use of electricity in an “exemption-retaining” way)
for “, 18 and 18A” substitute “and 18”.

7 Omit paragraph 18A (exemption: supply for use in recycling processes).

8 In paragraph 34 (time of supply of commodities other than gas and
electricity: deemed supplies)—

(a) 15in sub-paragraph (1)(b), for “45A” substitute “43B”, and

(b) in sub-paragraph (4), for “45A” substitute “43B”.

9 In paragraph 39(1)(c) (regulations as to time of supply) for “45A” substitute
“43B”.

10 In paragraph 42 (amount payable by way of levy)—

(a) 20in sub-paragraph (1)—

(i) in paragraph (a) after “supply” (in the second place it occurs)
insert “or a supply for use in scrap metal recycling”,

(ii) in paragraph (c) for “were not a reduced-rate supply.”
substitute “were a supply to which paragraph (a) applies;”,
25and

(iii) after paragraph (c) insert—

“(d) if the supply is a supply for use in scrap metal
recycling, 20 per cent of the amount that would be
payable if the supply were a supply to which
30paragraph (a) applies.”, and

(b) after that sub-paragraph insert—

“(1ZA) If a taxable supply is both a reduced-rate supply and a
supply for use in scrap metal recycling, the amount
payable by way of levy on the supply under sub-
35paragraph (1) is the lower of the two amounts provided for
that supply under that sub-paragraph.”

11 Before the cross-heading before paragraph 44 insert—

“Supplies for use in scrap metal recycling

(1) For the purposes of this Schedule, a taxable supply is a supply for
40use in scrap metal recycling if—

(a) the person to whom the taxable commodity is supplied
intends to cause the commodity to be used as fuel in a
process (“the recycling process”) to be carried out by that

person which is the shredding (or fragmentation), pre-
treatment and melting of scrap metal for recycling, and

(b) the condition in sub-paragraph (2) is satisfied.

(2) The condition is that there is another process (“the competing
5process”) that—

(a) uses taxable commodities otherwise than as fuel,

(b) produces a product of the same kind as one produced by
the recycling process,

(c) uses a greater amount of energy than the recycling process
10to produce a given quantity of that product, and

(d) involves a lesser charge to levy for a given quantity of that
product than would, but for paragraph 42(1)(d), be the
case for the recycling process.

(3) For the purposes of sub-paragraph (2)(a), taxable commodities are
15used “otherwise than as fuel” only if the supplies of those
commodities to the person using them are exempted from the levy
by virtue of paragraph 18.

(4) Sub-paragraphs (5) and (6) apply where the recycling process or
the competing process, as well as producing a product of the same
20kind as one produced by the other process (“the corresponding
product”), also produces one or more products that are not
(“different products”).

(5) If the production of the different products is merely incidental to
the production of the corresponding product, the different
25products are to be treated for the purposes of sub-paragraph (2)(c)
and (d) as being of the same kind as the corresponding product.

(6) If the production of the different products is not merely incidental
to the production of the corresponding product—

(a) the amounts of energy referred to in sub-paragraph (2)(c),
30and the amounts of the charge to levy referred to in sub-
paragraph (2)(d), are to be determined on a just and
reasonable apportionment, and

(b) in calculating the amount payable by way of levy on the
taxable supply, only the proportion of the supply that is
35the same as the proportion of the energy used by the
recycling process to produce the corresponding product
(as determined for the purposes of paragraph (a)) is to be
treated as being a supply for use in scrap metal recycling.

(7) In this paragraph—

• 40“melting” means—

  (a)

  the pre-heating and first melting of scrap metal before
  casting into items (“intermediates”) for further
  processing or re-melting, or

  (b)

  the heating of scrap metal as part of the recycling
  45process before any solidification and re-melting,

  but excluding the melting of any metal which is not scrap
  but which is added at any stage to improve the quality or
  adjust the composition of the recycled metal or
  intermediates, and

Finance (No. 4) BillPage 586

• “metal” means aluminium or steel.

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

(9) Regulations under this paragraph may, in particular, include
5provision for determining whether or not a taxable supply is a
supply for use in scrap metal recycling (to any extent).

Supplies for use in scrap metal recycling and reduced-rate supplies: deemed supply

(1) This paragraph applies where—

(a) a taxable supply (“the original supply”) has been made to
10any person (“the recipient”),

(b) the original supply was made on the basis that it was, to
any extent, a supply for use in scrap metal recycling or a
reduced-rate supply,

(c) it is later determined that the original supply was (or was
15to some extent) a different kind of supply, and

(d) the amount payable on the supply on the basis mentioned
in paragraph (b) is less than the amount payable on the
supply on the basis of the later determination.

(2) For the purposes of this Schedule—

(a) 20the recipient is deemed to make a taxable supply to itself of
the taxable commodity, and

(b) the amount payable by way of levy on that deemed supply
is—

(i) the amount payable on the original supply on the
25basis of the later determination mentioned in sub-
paragraph (1)(c), less

(ii) the amount payable on the original supply on the
basis mentioned in sub-paragraph (1)(b).

(3) This paragraph does not apply where a supply is treated as not
30being a reduced-rate supply by virtue of paragraph 45B.”

12 Omit paragraph 45A (reduced-rate supplies: deemed supply).

13 After paragraph 62(1)(c) (tax credits) insert—

“(ca) after a taxable supply has been made on the basis that it
was not a supply for use in scrap metal recycling, it is
35determined that the supply was (to any extent) a supply
for use in scrap metal recycling;

(cb) after a taxable supply has been made on the basis that it
was (to any extent) a supply for use in scrap metal
recycling, it is determined that the supply was such a
40supply to a greater extent than previously determined;”.

14 In paragraph 101(2)(a) (penalty for incorrect notification)—

(a) in sub-paragraph (ii) omit “, 18A”,

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

(c) before sub-paragraph (iv) insert—

“(iiia) 45a supply (or supplies) for use in scrap metal
recycling, or”.

15 In paragraph 146(3) (regulations subject to affirmative resolution procedure)
omit “18A,”.

16 In paragraph 147 (interpretation)—

(a) in the definition of “prescribed”, omit “, 18A”, and

(b) 5insert at the appropriate place—

• ““supply for use in scrap metal recycling” has the
  meaning given by paragraph 43A(1);”.

17 Omit section 188 of FA 2003 (climate change levy: exemption for fuel used in
recycling process).

(1) 10FA 2011 is amended as follows.

(2) In section 79 (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 (2)—

(a) omit the “and” after paragraph (b), and

(b) 15after that paragraph insert—

“(ba) the supply is not a supply for use in scrap metal
recycling (within the meaning of that Schedule (see
paragraph 147)), and”.

(3) Omit section 80 (power to suspend exemption for supplies used in recycling
20process).

19 The amendments made by paragraphs 2 to 18 have effect in relation to
supplies of taxable commodities so far as the commodities are actually
supplied on or after 1 April 2012.

Part 3 25Rates of climate change levy for supplies on or after 1 April 2013

20 In paragraph 42(1) of Schedule 6 to FA 2000 (amount payable by way of levy)
(as amended by paragraph 10(a) above)—

(a) before paragraph (c) insert—

“(ba) if the supply is a reduced-rate supply of electricity,
3010 per cent of the amount that would be payable if
the supply were a supply to which paragraph (a)
applies;”,

(b) in paragraph (c), for “a” (in the first place it occurs) substitute “any
other”, and

(c) 35for the table substitute—

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) 15the 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
20commodity,”.

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
25supplies treated as taking place on or after 1 April 2013.

Section 205

SCHEDULE 30 Climate change levy: climate change agreements

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
30“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 35In 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) 5containing any terms required by regulations
falling within paragraph 52E.”

(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) 10for “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) 15after 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) 20entered 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
25falling within paragraph 52E.”

(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) 30In 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) 35omit paragraph (c) and the “or” before it.

9 After paragraph 52 insert—

“The Administrator etc

(1) In this Part of this Schedule references to “the Administrator” are
to the body appointed as such by regulations made by the
40Secretary 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).