Finance Act 2012

Amendments to Schedule 6 to FA 2000

4 After paragraph 14(5) (exemption: supplies to electricity producers) insert—

“(6) A supply of a taxable commodity other than electricity to a person is exempt from the levy if—

(a) the commodity is to be used by that person in producing electricity in a generating station,

(b) the generating station is neither a fully exempt combined heat and power station nor a partly exempt combined heat and power station, and

(c) the capacity of the generating station for producing electricity is no more than 2 megawatts.

(7) If the generating station mentioned in sub-paragraph (6)(a) is one of a number of generating stations (which may include fully or partly exempt combined heat and power stations) which—

(a) are situated in the United Kingdom, and

(b) are owned by P or persons connected with P,

the reference to the capacity of the generating station in sub-paragraph (6)(c) is to be read as a reference to the capacity of all those generating stations taken together.

(8) For the purposes of sub-paragraph (7)(b)—

(a) “P” is the person who owns the generating station mentioned in sub-paragraph (6)(a), and

(b) section 1122 of the Corporation Tax Act 2010 (“connected” persons) applies.

(9) A supply of coal to a person is exempt from the levy if—

(a) the coal is to be used by that person in producing electricity in a generating station which is neither a fully exempt combined heat and power station nor a partly exempt combined heat and power station, and

(b) the coal has a gross calorific value of no more than 15 gigajoules per tonne.”