|
| |
| |
(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 |
| |
| |
(5) | In sub-paragraph (1)(b) “outputs” has the meaning given by |
| 5 |
| |
(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 |
| |
| 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 |
| |
(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 |
| |
| 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 |
| |
| 45 |
(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; |
| |
(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 |
| |
(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 |
| |
| |
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) |
| |
| 25 |
“(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 |
| |
| 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. |
| |
| |
| |
|
| |
| |
|
(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 |
| |
(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 |
| |
| |
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 |
| |
| |
(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 |
| |
(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 |
| |
| 40 |
| |
(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 |
| |
from the use of carbon price support rate commodities in |
| |
| |
(6) | In this paragraph “carbon capture and storage technology” and |
| 5 |
“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— |
| |
(a) | the carbon dioxide is captured but then leaks out and |
| 10 |
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, |
| |
(ii) | on any other land under the control of the station’s |
| 15 |
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 |
| |
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 |
| |
(b) | the amount payable by way of levy on that further deemed |
| |
| |
(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 |
| |
| 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) |
| |
| |
| |
|
| |
| |
| |
“(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 |
| |
| |
| 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 |
| |
| 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. |
| |
| |
““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 |
| |
| 40 |
““stand-by generator” means a generating station |
| |
| |
(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)”. |
| |
| |
| |
|
| |
| |
19 | After paragraph 152 insert— |
| |
“Meaning of “exempt unlicensed electricity supplier” |
| |
152A (1) | In this Schedule “exempt unlicensed electricity supplier” means a |
| |
| |
(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 |
| |
| |
(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 |
| |
| |
(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 |
| |
(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 |
| |
| |
(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 |
| |
(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. |
| |
| |
| |
|
| |
| |
(8) | In this paragraph “exempt CHP station” means a fully exempt |
| |
combined heat and power station or a partly exempt combined |
| |
| |
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 |
| |
| |
(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. |
| |
| |
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 |
| |
| |
| 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. |
| |
|
| |
| |
|
