|
| |
|
(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.” |
| |
12 (1) | Paragraph 2 of Schedule 11 (accounting for VAT and payment of VAT) is |
| 5 |
| |
(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 |
| |
| 10 |
(a) | for paragraph (b) substitute— |
| |
“(b) | specified by the Commissioners in accordance with |
| |
| |
(b) | for “prescribed” substitute “so specified”. |
| |
(4) | In sub-paragraph (3A) (statements containing particulars of certain |
| 15 |
| |
(a) | for paragraph (b) substitute— |
| |
“(b) | specified by the Commissioners in accordance with |
| |
| |
(b) | for “prescribed” substitute “so specified”. |
| 20 |
(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 |
| |
the end “or (in the case of the notification requirement) by the |
| 25 |
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 |
| |
| |
13 | In consequence of the amendments made by this Schedule— |
| 30 |
(a) | in FA 1996, omit section 30(2), and |
| |
(b) | in FA 2009, omit section 77(2)(d). |
| |
| |
| |
| |
| 35 |
Reduced-rate supplies on or after 1 April 2011: deemed supply |
| |
1 (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 |
| |
supply if the actual supply in question was treated as taking place on or after |
| 40 |
| |
|
| |
|
| |
|
| |
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 |
4 | In paragraph 5(3) (taxable supplies: deemed supplies of electricity) for “45A” |
| |
| |
5 | In paragraph 6(2A) (taxable supplies: deemed supplies of gas) for “45A” |
| |
| |
6 | In paragraph 14(3A)(a) (use of electricity in an “exemption-retaining” way) |
| 10 |
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) | in sub-paragraph (1)(b), for “45A” substitute “43B”, and |
| 15 |
(b) | in sub-paragraph (4), for “45A” substitute “43B”. |
| |
9 | In paragraph 39(1)(c) (regulations as to time of supply) for “45A” substitute |
| |
| |
10 | In paragraph 42 (amount payable by way of levy)— |
| |
(a) | in sub-paragraph (1)— |
| 20 |
(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;”, |
| |
| 25 |
(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 |
| |
paragraph (a) applies.”, and |
| 30 |
(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- |
| |
paragraph (1) is the lower of the two amounts provided for |
| 35 |
that supply under that sub-paragraph.” |
| |
11 | Before the cross-heading before paragraph 44 insert— |
| |
“Supplies for use in scrap metal recycling |
| |
43A (1) | For the purposes of this Schedule, a taxable supply is a supply for |
| |
use in scrap metal recycling if— |
| 40 |
(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 |
| |
| 5 |
(a) | uses taxable commodities otherwise than as fuel, |
| |
(b) | produces a product of the same kind as one produced by |
| |
| |
(c) | uses a greater amount of energy than the recycling process |
| |
to produce a given quantity of that product, and |
| 10 |
(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 |
| |
used “otherwise than as fuel” only if the supplies of those |
| 15 |
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 |
| |
kind as one produced by the other process (“the corresponding |
| 20 |
product”), also produces one or more products that are not |
| |
| |
(5) | If the production of the different products is merely incidental to |
| |
the production of the corresponding product, the different |
| |
products are to be treated for the purposes of sub-paragraph (2)(c) |
| 25 |
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), |
| |
and the amounts of the charge to levy referred to in sub- |
| 30 |
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 |
| |
the same as the proportion of the energy used by the |
| 35 |
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. |
| |
| |
| 40 |
(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 |
| |
process before any solidification and re-melting, |
| 45 |
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 |
| |
| |
|
| |
|
| |
|
“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 |
| |
provision for determining whether or not a taxable supply is a |
| 5 |
supply for use in scrap metal recycling (to any extent). |
| |
Supplies for use in scrap metal recycling and reduced-rate supplies: deemed supply |
| |
43B (1) | This paragraph applies where— |
| |
(a) | a taxable supply (“the original supply”) has been made to |
| |
any person (“the recipient”), |
| 10 |
(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 |
| |
| |
(c) | it is later determined that the original supply was (or was |
| |
to some extent) a different kind of supply, and |
| 15 |
(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) | the recipient is deemed to make a taxable supply to itself of |
| 20 |
the taxable commodity, and |
| |
(b) | the amount payable by way of levy on that deemed supply |
| |
| |
(i) | the amount payable on the original supply on the |
| |
basis of the later determination mentioned in sub- |
| 25 |
| |
(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 |
| |
being a reduced-rate supply by virtue of paragraph 45B.” |
| 30 |
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 |
| |
determined that the supply was (to any extent) a supply |
| 35 |
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 |
| |
supply to a greater extent than previously determined;”. |
| 40 |
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) | a supply (or supplies) for use in scrap metal |
| 45 |
| |
|
| |
|
| |
|
15 | In paragraph 146(3) (regulations subject to affirmative resolution procedure) |
| |
| |
16 | In paragraph 147 (interpretation)— |
| |
(a) | in the definition of “prescribed”, omit “, 18A”, and |
| |
(b) | insert at the appropriate place— |
| 5 |
““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 |
| |
| |
18 (1) | FA 2011 is amended as follows. |
| 10 |
(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) | after that paragraph insert— |
| 15 |
“(ba) | the supply is not a supply for use in scrap metal |
| |
recycling (within the meaning of that Schedule (see |
| |
| |
(3) | Omit section 80 (power to suspend exemption for supplies used in recycling |
| |
| 20 |
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. |
| |
| |
Rates of climate change levy for supplies on or after 1 April 2013 |
| 25 |
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, |
| |
10 per cent of the amount that would be payable if |
| 30 |
the supply were a supply to which paragraph (a) |
| |
| |
(b) | in paragraph (c), for “a” (in the first place it occurs) substitute “any |
| |
| |
(c) | for the table substitute— |
| 35 |
| |
| 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 |
| | | | | £0.00524 per kilowatt hour |
| | 40 |
|
|
| |
|
| |
|
| 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 |
| | | | Gas supplied by a gas utility or |
| £0.00182 per kilowatt hour |
| | | | any gas supplied in a gaseous |
| | | 5 | | state that is of a kind supplied |
| | | | | | | | | | Any petroleum gas, or other |
| | | | | gaseous hydrocarbon, supplied |
| | | | | | | | 10 | | Any other taxable commodity |
| | | |
|
|
| |
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— |
| 15 |
“(b) | the original supply was made on the basis that it was, to |
| |
| |
(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 |
| 20 |
| |
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 |
| 25 |
supplies treated as taking place on or after 1 April 2013. |
| |
| |
| |
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”. |
| 35 |
5 | In the cross-heading before paragraph 47 omit “with Secretary of State”. |
| |
6 | In paragraph 47(1) (definition of “climate change agreement”: direct |
| |
| |
(a) | in paragraph (a), for “Secretary of State” substitute “Administrator”, |
| |
(b) | omit the “and” after paragraph (f), |
| 40 |
|
| |
|
| |
|
| |
(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 |
| 5 |
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 |
| 10 |
(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 |
| 15 |
(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,”, |
| 20 |
| |
(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.” |
| 25 |
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 |
| |
| |
(3) | In sub-paragraph (7) for “paragraphs 47 and 48 and this paragraph” |
| 30 |
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. |
| 35 |
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 |
| |
| 40 |
(2) | The body appointed must be a body established by an enactment |
| |
(as defined in section 97 of the Climate Change Act 2008). |
| |
|
| |
|