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Finance Bill
Schedule 40 — Climate change levy: supplies subject to carbon price support rates etc
Part 2 — New provision having effect from 1 April 2013

476

 

      (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

through a pipe.

      (5)  

In sub-paragraph (1)(b) “outputs” has the meaning given by

5

paragraph 148(9).

      (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

(b)   

if the commodity’s availability for use in the station is

10

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

which the station’s CHPQA certificate was issued.

15

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

commodity is, or

20

(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

of a deemed supply under paragraph 24B, and

25

(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

the subject of a deemed supply under paragraph

30

24B.

      (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

a quantity, and

35

(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

mentioned in sub-paragraph (1)(c)(ii).

40

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

provision—

45

(a)   

for determining whether a deemed supply under

paragraph 24A or 24B is made;

 
 

Finance Bill
Schedule 40 — Climate change levy: supplies subject to carbon price support rates etc
Part 2 — New provision having effect from 1 April 2013

477

 

(b)   

for determining the quantity of any commodity which is

the subject of such a deemed supply;

(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

5

support rate.

      (3)  

Regulations under sub-paragraph (1) may include—

(a)   

provision in respect of calculations, measurements, data

and procedures to be made or used;

(b)   

provision that, so far as framed by reference to any

10

document, is framed by reference to that document as from

time to time in force.”

11         

After paragraph 38 insert—

“Deemed supplies under paragraph 24A, 24B, 24C or 42D

38A   (1)  

A deemed supply under paragraph 24A or 24B is treated as taking

15

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

place upon the later determination.”

20

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)

insert—

25

   “(1B)  

Sub-paragraph (1) does not apply to a deemed supply under

paragraph 24A or 24B.”

14         

After paragraph 42 insert—

“42A  (1)  

This paragraph applies to a deemed supply under paragraph 24A

or 24B.

30

      (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

kilowatt hour, kilogram or gigajoule.

35

      (3)  

The carbon price support rates are as follows.

 
 

Finance Bill
Schedule 40 — Climate change levy: supplies subject to carbon price support rates etc
Part 2 — New provision having effect from 1 April 2013

478

 
 

Carbon price support

Carbon price support

 
 

rate commodity

rate

 
 

Any gas in a gaseous

£0.00091 per kilowatt

 
 

state that is of a kind

hour

 
 

supplied by a gas

  

5

 

utility

  
 

Any petroleum gas, or

£0.01460 per kilogram

 
 

other gaseous

  
 

hydrocarbon, in a

  
 

liquid state

  

10

 

Any commodity

£0.44264 per gigajoule

 
 

falling within

  
 

paragraph 3(1)(d) to

  
 

(f)

  

      (4)  

Sub-paragraph (2) needs to be read with paragraphs 42B and 42C.

15

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

determined by reference to the total gross calorific value of that

20

quantity.

      (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).

      (4)  

The gross calorific value of the coal slurry is to be left out of

25

account in determining the total gross calorific value of that

quantity.

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

taking place, carbon capture and storage technology is operated in

30

relation to carbon dioxide generated by the station in question in

producing electricity.

      (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).

      (3)  

“C%” is 100% minus the station’s carbon capture percentage for

35

the calendar year.

      (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

storage technology, is—

40

(a)   

captured, and

(b)   

then disposed of by way of permanent storage.

 
 

Finance Bill
Schedule 40 — Climate change levy: supplies subject to carbon price support rates etc
Part 2 — New provision having effect from 1 April 2013

479

 

      (5)  

The station’s “generated carbon dioxide” for the calendar year is

the amount of carbon dioxide generated in the year by the station

from the use of carbon price support rate commodities in

producing electricity.

      (6)  

In this paragraph “carbon capture and storage technology” and

5

“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

10

therefore is not disposed of by way of permanent storage,

but

(b)   

the leak does not occur—

(i)   

on the land on which the station is situated,

(ii)   

on any other land under the control of the station’s

15

owner or a person connected with the station’s

owner, or

(iii)   

from any pipeline or other facility or installation

which is operated by the station’s owner or a

person connected with the station’s owner.

20

           

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

25

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

a deemed supply of a quantity of a commodity under

30

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

make a further taxable supply to himself of the quantity of

35

the commodity, and

(b)   

the amount payable by way of levy on that further deemed

supply is—

(i)   

the total amount payable on the first deemed

supply on the basis of the later determination

40

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

paragraph (a) insert—

45

“(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)

 
 

Finance Bill
Schedule 40 — Climate change levy: supplies subject to carbon price support rates etc
Part 2 — New provision having effect from 1 April 2013

480

 

insert—

“(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—

(i)   

is not used as mentioned in paragraph 24A(1)(b) or

5

24B(1)(b) (as the case may be), and

(ii)   

is removed from the site at which the station is

situated or from the CHPQA site of the station (as

the case may be);

(bb)   

after—

10

(i)   

a determination is made under regulations falling

within paragraph 24B(3) that a quantity, or a

proportion of a quantity, of a carbon price support

rate commodity is referable to the production of

electricity, and

15

(ii)   

it is accordingly determined that the quantity or

proportion of a quantity is the subject of a deemed

supply under paragraph 24B,

   

it is determined that the quantity or proportion of a

quantity was not referable to the production of electricity;

20

(bc)   

after an amount is determined to be payable by way of levy

on a deemed supply under paragraph 24A or 24B, it is

determined that that amount is too high;”.

17         

In paragraph 146 (regulations) in sub-paragraph (3)—

(a)   

for “14(3),” substitute “5(2A), 14(2),”, and

25

(b)   

after “16,” insert “17(1B),”.

18         

In paragraph 147 (definitions)—

(a)   

at the appropriate places, insert—

““carbon price support rate commodity” means any

taxable commodity other than electricity;”,

30

““CHPQA certificate” has the same meaning as in the

Climate Change Levy (Combined Heat and Power

Stations) Exemption Certificate Regulations 2001 (S.I.

2001/486);”,

““exempt unlicensed electricity supplier” has the

35

meaning given by paragraph 152A;”,

““Great Britain” includes the territorial waters of the

United Kingdom so far as adjacent to Great Britain;”,

““small generating station” has the meaning given by

paragraph 152B;”, and

40

““stand-by generator” means a generating station

which—

(a)   

is used to provide an emergency electricity

supply to a building in the event of a failure of

the building’s usual electricity supply, and

45

(b)   

is not used for any other purpose;”, and

(b)   

in the definition of “prescribed”—

(i)   

for “14(3),” substitute “5(2A), 14(2),”, and

(ii)   

after “16(3)” insert “, 17(1B)”.

 
 

Finance Bill
Schedule 40 — Climate change levy: supplies subject to carbon price support rates etc
Part 2 — New provision having effect from 1 April 2013

481

 

19         

After paragraph 152 insert—

“Meaning of “exempt unlicensed electricity supplier”

152A  (1)  

In this Schedule “exempt unlicensed electricity supplier” means a

person—

(a)   

to whom an exemption from section 4(1)(c) of the

5

Electricity Act 1989 (persons supplying electricity to

premises) has been granted by an order under section 5 of

that Act, or

(b)   

to whom an exemption from Article 8(1)(c) of the

Electricity Supply (Northern Ireland) Order 1992 has been

10

granted by an order under Article 9 of that Order,

           

except where the person is acting otherwise than for purposes

connected with the carrying on of activities authorised by the

exemption.

      (2)  

Sub-paragraph (1) applies subject to—

15

(a)   

any direction under paragraph 151(1), and

(b)   

any regulations under paragraph 151(2).

Meaning of “small generating station”

152B  (1)  

In this Schedule “small generating station” means a generating

station the capacity of which for producing electricity is no more

20

than 2 megawatts.

      (2)  

Sub-paragraph (3) applies if a relevant station (“station X”) is one

of a number of relevant stations which—

(a)   

are situated in the United Kingdom, and

(b)   

are owned by P or persons connected with P.

25

      (3)  

In applying sub-paragraph (1) in relation to station X, the

reference to the capacity of a generating station is to be read as a

reference to the capacity of station X and all the other relevant

stations mentioned in sub-paragraph (2) taken together.

      (4)  

In sub-paragraphs (2) and (3) “relevant station” means a

30

generating station which is neither an exempt CHP station nor a

stand-by generator.

      (5)  

For the purposes of sub-paragraph (2)(b)—

(a)   

“P” is the person who owns station X, and

(b)   

section 1122 of the Corporation Tax Act 2010 (“connected”

35

persons) applies.

      (6)  

Sub-paragraph (7) applies if the scheme in relation to which the

CHPQA certificate of an exempt CHP station (“station Y”) is

issued covers other exempt CHP stations as well.

      (7)  

In applying sub-paragraph (1) in relation to station Y, the

40

reference to the capacity of a generating station is to be read as a

reference to the capacity of station Y and all the other exempt CHP

stations mentioned in sub-paragraph (6) taken together.

 
 

Finance Bill
Schedule 40 — Climate change levy: supplies subject to carbon price support rates etc
Part 3 — Carbon price support rates from 1 April 2014

482

 

      (8)  

In this paragraph “exempt CHP station” means a fully exempt

combined heat and power station or a partly exempt combined

heat and power station.”

20    (1)  

Regulation 5 of the Climate Change Levy (Electricity and Gas) Regulations

2001 (S.I. 2001/1136) is amended as follows.

5

      (2)  

In paragraph (1) for “paragraph 14(2) of the Act (exemption: certain supplies

to electricity producers)” substitute “paragraphs 5(2A), 14(2) and 17(1B) of

the Act (which contain references to exempt unlicensed electricity

suppliers)”.

      (3)  

In paragraph (2)(a) for “14(4)” substitute “152A(1)”.

10

      (4)  

The amendments made by this paragraph are to be treated as having been

made by the Treasury under the powers to make regulations conferred by

paragraphs 5(2A), 14(2) and 17(1B) of Schedule 6 to FA 2000.

Commencement

21         

The amendments made by this Part of this Schedule are treated as having

15

come into force on 26 March 2013.

22    (1)  

The amendments made by paragraph 6(2) and (3) above have effect for the

purpose of determining if a supply of gas or electricity is exempt from levy

where the gas or electricity is actually supplied on or after 1 April 2013.

           

“Gas” means gas in a gaseous state that is of a kind supplied by a gas utility.

20

      (2)  

Those amendments are to have effect for the purpose of determining if any

other supply is exempt from levy where the supply is treated as taking place

on or after 1 April 2013.

      (3)  

The amendments made by paragraph 8 above have effect for the purpose of

determining if a supply of electricity is exempt from levy where the

25

electricity is caused to be consumed on or after 1 April 2013.

      (4)  

The amendment made by paragraph 10 above has effect in relation to carbon

price support rate commodities which are brought onto, or arrive at, sites on

or after 1 April 2013.

Part 3

30

Carbon price support rates from 1 April 2014

23    (1)  

In paragraph 42A of Schedule 6 to FA 2000 (as inserted by paragraph 14

above) for sub-paragraph (3) substitute—

    “(3)  

The carbon price support rates are as follows.

 

Carbon price support

Carbon price support

 

35

 

rate commodity

rate

 
 

Any gas in a gaseous

£0.00175 per kilowatt

 
 

state that is of a kind

hour

 
 

supplied by a gas

  
 

utility

  

40

 
 

 
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