|
| |
|
| |
| |
Climate change levy: supplies subject to carbon price support rates etc |
| |
| |
Earlier provision not to have effect |
| |
1 (1) | On and after 26 March 2013, Schedule 6 to FA 2000 (climate change levy) has |
| 5 |
| |
(a) | Schedule 20 to FA 2011, nor |
| |
(b) | Parts 1 and 2 of Schedule 32 to FA 2012, |
| |
| |
| 10 |
(a) | in FA 2011, section 78 and Schedule 20 are omitted, and |
| |
(b) | in FA 2012, Parts 1 and 2 of Schedule 32 are omitted. |
| |
(3) | The amendments made by sub-paragraph (2) are treated as having come |
| |
into force on 26 March 2013. |
| |
| 15 |
New provision having effect from 1 April 2013 |
| |
| |
2 | Schedule 6 to FA 2000 (climate change levy) is amended as follows. |
| |
3 | In paragraph 4 (definition of “taxable supply”) in sub-paragraph (2)(b) after |
| |
“24” insert “, 24A, 24B, 24C, 42D”. |
| 20 |
4 | In paragraph 5 (supplies of electricity) after sub-paragraph (2) insert— |
| |
“(2A) | Levy is chargeable on a supply of electricity if— |
| |
(a) | the supply is made by an exempt unlicensed electricity |
| |
supplier who is an auto-generator or who is of a |
| |
description prescribed by regulations made by the |
| 25 |
| |
(b) | the electricity was produced in a generating station owned |
| |
by the supplier using commodities which were the subject |
| |
of a deemed supply under paragraph 24A or which would |
| |
have been the subject of such a supply had the reference in |
| 30 |
paragraph 24A(1)(a) to Great Britain been a reference to |
| |
the United Kingdom instead, |
| |
(c) | the supply is not a deemed supply under paragraph 23(3), |
| |
| |
(d) | the person to whom the supply is made is not an electricity |
| 35 |
| |
5 | In paragraph 6 (supplies of gas) in sub-paragraph (2A) after “24” insert “, |
| |
| |
6 (1) | Paragraph 14 (exemption for supplies to electricity producers) is amended |
| |
| 40 |
|
| |
|
| |
|
(2) | In sub-paragraphs (2)(b) and (3)(b) after “electricity” insert “in a small |
| |
| |
(3) | After sub-paragraph (3) insert— |
| |
“(3ZA) | Sub-paragraph (1) does not exempt a supply where the person to |
| |
| 5 |
(a) | uses the commodity supplied in producing electricity in a |
| |
| |
(b) | uses the electricity produced otherwise than in exemption- |
| |
| |
(4) | After sub-paragraph (3A) insert— |
| 10 |
“(3B) | Paragraph 24A makes provision under which carbon price |
| |
support rate commodities intended to be used in a generating |
| |
station may be the subject of a deemed taxable supply (and, |
| |
accordingly, this paragraph needs to be read subject to that |
| |
| 15 |
(5) | Omit sub-paragraphs (4) and (5). |
| |
7 | In paragraph 15 (exemption for supplies to combined heat and power |
| |
stations) after sub-paragraph (4) insert— |
| |
“(4A) | Paragraph 24B makes provision under which carbon price |
| |
support rate commodities intended to be used in a combined heat |
| 20 |
and power station may be the subject of a deemed taxable supply |
| |
(and, accordingly, this paragraph needs to be read subject to that |
| |
| |
8 (1) | Paragraph 17 (exemption: self-supplies by electricity producers) is amended |
| |
| 25 |
(2) | After sub-paragraph (1) insert— |
| |
“(1A) | The supply is exempt from levy if it is a supply of electricity |
| |
| |
(a) | a fully exempt combined heat and power station, |
| |
(b) | a partly exempt combined heat and power station, |
| 30 |
(c) | a stand-by generator, or |
| |
(d) | a small generating station. |
| |
(1B) | Sub-paragraph (1A)(d) applies only if the producer is— |
| |
(a) | an auto-generator, or |
| |
(b) | an exempt unlicensed electricity supplier of a description |
| 35 |
prescribed by regulations made by the Treasury.” |
| |
(3) | In sub-paragraph (2) for the words from “If” to “unless—” substitute “This |
| |
paragraph does not exempt the supply if—”. |
| |
(4) | Omit sub-paragraphs (3) and (4). |
| |
9 | In paragraph 21 (regulations to avoid double charges to levy) after sub- |
| 40 |
| |
“(2A) | In sub-paragraph (2)(b) “taxable supply” does not include a |
| |
deemed supply under paragraph 24A, 24B, 24C or 42D.” |
| |
|
| |
|
| |
|
10 | In Part 2 after paragraph 24 insert— |
| |
“Deemed taxable supply: commodities to be used in producing electricity |
| |
24A (1) | Sub-paragraph (2) applies if— |
| |
(a) | a quantity of a carbon price support rate commodity is |
| |
brought onto, or arrives at, a site in Great Britain at which |
| 5 |
a generating station is situated, |
| |
(b) | that quantity of the commodity is intended to be used for |
| |
producing electricity in the station, |
| |
(c) | the station is neither a fully exempt combined heat and |
| |
power station nor a partly exempt combined heat and |
| 10 |
| |
(d) | the station is neither a small generating station nor a stand- |
| |
| |
(2) | For the purposes of this Schedule the owner of the station is |
| |
deemed to make a taxable supply to himself of that quantity of the |
| 15 |
| |
(3) | In sub-paragraph (1)(a) the reference to a commodity being |
| |
brought onto, or arriving at, a site covers (in particular) gas in a |
| |
gaseous state arriving at the site through a pipe. |
| |
(4) | For the purposes of sub-paragraph (1) it does not matter— |
| 20 |
(a) | if the quantity of the commodity is not the subject of an |
| |
actual supply made to the owner of the station, or |
| |
(b) | if the commodity’s availability for use in the station is |
| |
subject to any condition. |
| |
Deemed taxable supply: commodities to be used in combined heat and power station |
| 25 |
24B (1) | Sub-paragraph (2) applies if— |
| |
(a) | a quantity of a carbon price support rate commodity is |
| |
brought onto, or arrives at, the CHPQA site of a fully |
| |
exempt combined heat and power station or a partly |
| |
exempt combined heat and power station in Great Britain, |
| 30 |
(b) | that quantity of the commodity is intended to be used in |
| |
the station for producing outputs of the station, and |
| |
(c) | the station is not a small generating station. |
| |
(2) | For the purposes of this Schedule the operator of the station is |
| |
deemed to make a taxable supply to himself of that quantity of the |
| 35 |
commodity so far as that quantity is referable to the production of |
| |
| |
(3) | For the purposes of sub-paragraph (2) the extent to which a |
| |
quantity of a commodity is referable to the production of |
| |
electricity is to be determined in accordance with regulations |
| 40 |
| |
(4) | In sub-paragraph (1)(a) the reference to a commodity being |
| |
brought onto, or arriving at, the CHPQA site of a station covers (in |
| |
particular) gas in a gaseous state arriving at the CHPQA site |
| |
| 45 |
|
| |
|
| |
|
(5) | In sub-paragraph (1)(b) “outputs” has the meaning given by |
| |
| |
(6) | For the purposes of sub-paragraph (1) it does not matter— |
| |
(a) | if the quantity of the commodity is not the subject of an |
| |
actual supply made to the operator of the station, or |
| 5 |
(b) | if the commodity’s availability for use in the station is |
| |
subject to any condition. |
| |
(7) | In this paragraph “CHPQA site”, in relation to a fully exempt |
| |
combined heat and power station or a partly exempt combined |
| |
heat and power station, means the site of the scheme in relation to |
| 10 |
which the station’s CHPQA certificate was issued. |
| |
24C (1) | This paragraph applies if— |
| |
(a) | a determination (“the initial determination”) is made |
| |
under regulations falling within paragraph 24B(3) that— |
| |
(i) | none of a quantity of a carbon price support rate |
| 15 |
| |
(ii) | a proportion of such a quantity is not, |
| |
| referable to the production of electricity, |
| |
(b) | as a result of the initial determination, the quantity or |
| |
proportion of a quantity is determined not to be the subject |
| 20 |
of a deemed supply under paragraph 24B, and |
| |
(c) | it is later determined that, contrary to the initial |
| |
determination, the quantity or proportion of a quantity— |
| |
(i) | was referable to the production of electricity, and |
| |
(ii) | accordingly, should have been determined to be |
| 25 |
the subject of a deemed supply under paragraph |
| |
| |
(2) | For the purposes of this Schedule— |
| |
(a) | the operator of the station in question is deemed to make a |
| |
taxable supply to himself of the quantity or proportion of |
| 30 |
| |
(b) | the amount payable by way of levy on the deemed supply |
| |
is the amount which would have been payable in relation |
| |
to the quantity or proportion of a quantity had it been |
| |
determined to be the subject of a deemed supply as |
| 35 |
mentioned in sub-paragraph (1)(c)(ii). |
| |
Power to make regulations giving effect to paragraphs 24A to 24C etc |
| |
24D (1) | The Commissioners may by regulations make provision for giving |
| |
effect to paragraphs 24A to 24C and 42A to 42D. |
| |
(2) | Regulations under sub-paragraph (1) may, in particular, include |
| 40 |
| |
(a) | for determining whether a deemed supply under |
| |
paragraph 24A or 24B is made; |
| |
(b) | for determining the quantity of any commodity which is |
| |
the subject of such a deemed supply; |
| 45 |
(c) | for determining whether paragraph 42C(2) applies in |
| |
relation to a deemed supply under paragraph 24A or 24B |
| |
|
| |
|
| |
|
and, if it does, the reduction in the relevant carbon price |
| |
| |
(3) | Regulations under sub-paragraph (1) may include— |
| |
(a) | provision in respect of calculations, measurements, data |
| |
and procedures to be made or used; |
| 5 |
(b) | provision that, so far as framed by reference to any |
| |
document, is framed by reference to that document as from |
| |
| |
11 | After paragraph 38 insert— |
| |
“Deemed supplies under paragraph 24A, 24B, 24C or 42D |
| 10 |
38A (1) | A deemed supply under paragraph 24A or 24B is treated as taking |
| |
place when the quantity of the commodity is brought onto, or |
| |
arrives at, the site at which the station is situated or the CHPQA |
| |
site of the station (as the case may be). |
| |
(2) | A deemed supply under paragraph 24C or 42D is treated as taking |
| 15 |
place upon the later determination.” |
| |
12 (1) | Paragraph 39 (regulations as to time of supply) is amended as follows. |
| |
(2) | In sub-paragraph (1)(c) after “24” insert “, 24A, 24B, 24C, 42D”. |
| |
(3) | In sub-paragraph (3) after “supply)” insert “and 38A”. |
| |
13 | In paragraph 42 (amount payable by way of levy) before sub-paragraph (2) |
| 20 |
| |
“(1B) | Sub-paragraph (1) does not apply to a deemed supply under |
| |
| |
14 | After paragraph 42 insert— |
| |
“42A (1) | This paragraph applies to a deemed supply under paragraph 24A |
| 25 |
| |
(2) | The amount payable by way of levy on the deemed supply is the |
| |
amount ascertained by applying the relevant carbon price support |
| |
rate; and the levy payable on a fraction of a kilowatt hour, |
| |
kilogram or gigajoule is that fraction of the levy payable on a |
| 30 |
kilowatt hour, kilogram or gigajoule. |
| |
(3) | The carbon price support rates are as follows. |
| |
|
|
| |
|
| |
|
|
|
(4) | Sub-paragraph (2) needs to be read with paragraphs 42B and 42C. |
| |
42B (1) | This paragraph applies for the purposes of paragraph 42A(2) if the |
| |
commodity deemed to be supplied is a quantity of a commodity |
| |
falling within paragraph 3(1)(d) to (f). |
| |
(2) | The number of gigajoules in the quantity supplied is to be |
| 15 |
determined by reference to the total gross calorific value of that |
| |
| |
(3) | Sub-paragraph (4) applies if there is included in that quantity any |
| |
coal slurry taken from a slurry pit situated at the site of a coal mine |
| |
(including a disused coal mine). |
| 20 |
(4) | The gross calorific value of the coal slurry is to be left out of |
| |
account in determining the total gross calorific value of that |
| |
| |
42C (1) | Sub-paragraph (2) applies for the purposes of paragraph 42A(2) if, |
| |
in the calendar year in which the deemed supply is treated as |
| 25 |
taking place, carbon capture and storage technology is operated in |
| |
relation to carbon dioxide generated by the station in question in |
| |
| |
(2) | In relation to the deemed supply, only C% of the relevant carbon |
| |
price support rate is to be applied (instead of the full rate). |
| 30 |
(3) | “C%” is 100% minus the station’s carbon capture percentage for |
| |
| |
(4) | The 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 |
| 35 |
| |
| |
(b) | then disposed of by way of permanent storage. |
| |
(5) | The station’s “generated carbon dioxide” for the calendar year is |
| |
the amount of carbon dioxide generated in the year by the station |
| 40 |
from the use of carbon price support rate commodities in |
| |
| |
|
| |
|
| |
|
(6) | In this paragraph “carbon capture and storage technology” and |
| |
“carbon dioxide” have the meaning given by section 7(3) and (4) of |
| |
| |
(7) | Sub-paragraph (8) applies for the purposes of sub-paragraph (4) in |
| |
relation to any carbon dioxide if— |
| 5 |
(a) | the carbon dioxide is captured but then leaks out and |
| |
therefore is not disposed of by way of permanent storage, |
| |
| |
(b) | the leak does not occur— |
| |
(i) | on the land on which the station is situated, |
| 10 |
(ii) | on any other land under the control of the station’s |
| |
owner or a person connected with the station’s |
| |
| |
(iii) | from any pipeline or other facility or installation |
| |
which is operated by the station’s owner or a |
| 15 |
person connected with the station’s owner. |
| |
| 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. |
| 20 |
(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). |
| |
42D (1) | This paragraph applies if— |
| |
(a) | an amount is determined to be payable by way of levy on |
| 25 |
a deemed supply of a quantity of a commodity under |
| |
paragraph 24A or 24B, but |
| |
(b) | it is later determined that that amount is too low. |
| |
(2) | For the purposes of this Schedule— |
| |
(a) | the person who made the deemed supply is deemed to |
| 30 |
make a further taxable supply to himself of the quantity of |
| |
| |
(b) | the amount payable by way of levy on that further deemed |
| |
| |
(i) | the total amount payable on the first deemed |
| 35 |
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 first deemed supply.” |
| |
15 | In paragraph 55 (notification of registrability) in sub-paragraph (1) after |
| 40 |
| |
“(aa) | expects to be deemed to make a taxable supply to himself |
| |
under paragraph 24A or 24B, or”. |
| |
16 | In paragraph 62 (tax credits) in sub-paragraph (1) after paragraph (b) |
| |
| 45 |
“(ba) | a quantity of a carbon price support rate commodity is the |
| |
subject of a deemed supply under paragraph 24A or 24B |
| |
but afterwards the quantity— |
| |
|
| |
|