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PART II |
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TAXABLE SUPPLIES |
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Introduction |
| | 4. - (1) A supply of a taxable commodity (or part of such a supply) is a taxable supply for the purposes of the levy if levy is chargeable on the supply under-
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paragraph 5 (supplies of electricity), |
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paragraph 6 (supplies of gas), or |
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paragraph 7 (other supplies in course or furtherance of business), |
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and the supply (or part) is not excluded under paragraphs 8 to 10 or exempt under paragraphs 11 to 21.
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(2) In this Schedule-
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(a) references to a supply of a taxable commodity include a supply that is deemed to be made under paragraph 22, and |
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(b) references to a taxable supply include a supply that is deemed to be made under paragraph 23, |
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but paragraphs 22 and 23 have effect subject to any exceptions provided for under paragraph 20.
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Supplies of electricity |
| | 5. - (1) Levy is chargeable on a supply of electricity if-
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(a) the supply is made by an electricity utility, and |
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(b) the person to whom the supply is made- |
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(i) is not an electricity utility, or
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(ii) is the utility itself.
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(2) Levy is chargeable on a supply made from a combined heat and power station of electricity produced in the station if-
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(a) the station is a partly exempt combined heat and power station, |
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(b) the supply is not one that is deemed to be made under paragraph 22(3) (self-supply by producer), and |
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(c) the person to whom the supply is made is not an electricity utility. |
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(3) Levy is chargeable on a supply of electricity that is deemed to be made under paragraph 22(3).
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(4) Except as provided by sub-paragraphs (1) to (3), levy is not chargeable on a supply of electricity.
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Supplies of gas |
| | 6. - (1) Levy is chargeable on a supply of any gas if-
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(a) the supply is made by a gas utility, and |
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(b) the person to whom the supply is made- |
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(i) is not a gas utility, or
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(ii) is the utility itself.
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(2) Levy is chargeable on a supply of gas in a gaseous state if-
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(a) the supply is made by an exempt unlicensed gas supplier of a description prescribed by regulations made by the Treasury, and |
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(b) the gas is of a kind supplied by a gas utility. |
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(3) Levy is chargeable on a supply of gas that is deemed to be made under paragraph 22(3) (self-supply by producer) if the gas-
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(a) is held in a gaseous state immediately prior to being released for burning, and |
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(b) is of a kind supplied by a gas utility. |
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(4) Except as provided by sub-paragraphs (1) to (3), levy is not chargeable on a supply of any gas that is supplied in a gaseous state.
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(5) In sub-paragraph (2) "exempt unlicensed gas supplier" means a person-
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(a) to whom an exemption from section 5(1)(b) of the Gas Act 1986 (persons supplying gas to premises) has been granted by an order under section 6A of that Act, or |
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(b) to whom an exemption from Article 6(1)(c) of the Gas (Northern Ireland) Order 1996 has been granted by an order under Article 7 of that Order. |
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Other supplies made in course or furtherance of business |
| | 7. - (1) This paragraph applies to a supply of a taxable commodity other than-
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(b) gas in a gaseous state. |
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(2) Levy is chargeable on any such supply if the supply is made in the course or furtherance of a business.
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Excluded supplies: supply for domestic or charity use |
| | 8. - (1) A supply is excluded from the levy if it is-
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(a) for domestic use (see paragraph 9), or |
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(2) For the purposes of this paragraph, a supply is for charity use if the commodity supplied is for use by a charity otherwise than in the course or furtherance of a business.
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(3) If a supply is partly for domestic or charity use and partly not, the part of the supply that is for domestic or charity use is excluded from the levy.
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(4) Where a supply of a commodity is partly for domestic or charity use and partly not-
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(a) if at least 60 per cent. of the commodity is supplied for domestic or charity use, the whole supply is treated as a supply for domestic or charity use, and |
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(b) in any other case, an apportionment shall be made to determine the extent to which the supply is for domestic or charity use. |
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Excluded supplies: meaning of "for domestic use" |
| | 9. - (1) For the purposes of paragraph 8 the following supplies are always for domestic use-
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(a) a supply of not more than one tonne of coal or coke held out for sale as domestic fuel; |
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(b) a supply to a person at any premises of- |
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(i) any gas in a gaseous state that is provided through pipes and is of a kind supplied by a gas utility, or
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(ii) petroleum gas in a gaseous state provided through pipes,
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where the gas or petroleum gas (together with any other gas or petroleum gas provided through pipes to him at the premises by the same supplier) was not provided at a rate exceeding 4397 kilowatt hours a month; |
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(c) a supply of petroleum gas in a liquid state where the petroleum gas is supplied in cylinders the net weight of each of which is less than 50 kilogrammes and either the number of cylinders supplied is 20 or fewer or the petroleum gas is not intended for sale by the recipient; |
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(d) a supply of petroleum gas in a liquid state, otherwise than in cylinders, to a person at any premises at which he is not able to store more than two tonnes of such petroleum gas; |
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(e) a metered supply of electricity to a person at any premises where the electricity (together with any other electricity provided to him at the premises by the same supplier) was not provided at a rate exceeding 1000 kilowatt hours a month; |
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(f) an unmetered supply of electricity to a person where the electricity (together with any other unmetered electricity provided to him by the same supplier) was not provided at a rate exceeding 1000 kilowatt hours a month. |
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(2) For the purposes of paragraph 8, supplies not within sub-paragraph (1) are for domestic use if and only if the commodity supplied is for use in-
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(a) a building, or part of a building, which consists of a dwelling or number of dwellings, |
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(b) a building, or part of a building, used for a relevant residential purpose, |
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(c) self-catering holiday accommodation (including any accommodation advertised or held out as such), |
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(e) a houseboat (that is to say, a boat or other floating decked structure designed or adapted for use solely as a place of permanent habitation and not having means of, or capable of being readily adapted for, self-propulsion), or |
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(i) is not part of a combined heat and power station,
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(i) is located otherwise than in premises of a description mentioned in any of paragraphs (a) to (e), and
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(iii) is used to heat air or water that, when heated, is supplied to premises of, or each of, such a description.
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(3) For the purposes of this paragraph use for a relevant residential purpose means use as-
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(a) a home or other institution providing residential accommodation for children, |
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(b) a home or other institution providing residential accommodation with personal care for persons in need of personal care by reason of old age, disablement, past or present dependence on alcohol or drugs or past or present mental disorder, |
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(d) residential accommodation for students or school pupils, |
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(e) residential accommodation for members of any of the armed forces, |
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(f) a monastery, nunnery or similar establishment, or |
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(g) an institution which is the sole or main residence of at least 90 per cent. of its residents, |
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except use as a hospital, a prison or similar institution or an hotel or inn or similar establishment.
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(4) The power to make provision by order under section 2(1C) of the Value Added Tax Act 1994 varying, or varying any provision contained in, Schedule A1 to that Act (supplies for domestic use and non-business use by a charity that attract reduced VAT rate) includes power to make provision for any appropriate corresponding variation of, or of any provision contained in, this paragraph.
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Excluded supplies: supply before 1st April 2001 |
| | 10. Any supply made before 1st April 2001 is excluded from the levy.
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