Amendments to Schedule 6 to FA 2000
5(1)Paragraph 15 (exemption: supplies to combined heat and power stations) is amended as follows.
(2)In sub-paragraph (1)—
(a)for “a taxable commodity” substitute “electricity”,
(b)in paragraph (a), for “commodity” substitute “electricity”, and
(c)omit the final sentence.
(3)In sub-paragraph (2)—
(a)in paragraph (a), for “a taxable commodity” substitute “electricity”, and
(b)in paragraph (b), for “commodity” substitute “electricity”.
(4)In sub-paragraph (3) for “a taxable commodity” substitute “electricity”.
(5)After sub-paragraph (3) insert—
“(3A)A supply of a taxable commodity other than electricity to a person is exempt from the levy if—
(a)that person intends to cause the commodity to be used in—
(i)a fully exempt combined heat and power station, or
(ii)a partly exempt combined heat and power station,
in producing any outputs of the station, and
(b)the capacity of the station for producing electricity is no more than 2 megawatts.
(3B)If the station mentioned in sub-paragraph (3A)(a) is one of a number of generating stations (which may include stations which are neither fully exempt combined heat and power stations nor 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 station in sub-paragraph (3A)(b) is to be read as a reference to the capacity of all those generating stations taken together.
(3C)For the purposes of sub-paragraph (3B)(b)—
(a)“P” is the person who owns the station mentioned in sub-paragraph (3A)(a), and
(b)section 1122 of the Corporation Tax Act 2010 (“connected” persons) applies.
(3D)A supply of coal to a person is exempt from the levy if—
(a)that person intends to cause the coal to be used in—
(i)a fully exempt combined heat and power station, or
(ii)a partly exempt combined heat and power station,
in producing any outputs of the station, and
(b)the coal has a gross calorific value of no more than 15 gigajoules per tonne.”
(6)Before sub-paragraph (4)(a) insert—
“(za)outputs” has the meaning given by paragraph 148(9);”.