The Climate Change Levy (Suspension of Transport Exemption) Order 2011

EXPLANATORY NOTE

(This note is not part of the Order)

Articles 2 and 3 suspend the exemption from climate change levy provided for in paragraph 12 of Schedule 6 to the Finance Act 2000 (exemption: supply used in transport), for taxable commodities burned or consumed in relation to open access passenger rail services and rail freight services. These services are defined in article 4.

The Order is made in exercise of a power contained in resolution number 47, passed by the House of Commons on 29th March 2011 following the Budget held on 23rd March. The resolution has temporary statutory effect by virtue of section 1 of the Provisional Collection of Taxes Act 1968. It provides that the Treasury may by order provide that paragraph 12 of Schedule 6 to the Finance Act 2000 does not apply in relation to any supply of a taxable commodity which is made on or after 1st April 2011 and is of a description specified in the order.

The provisions of the resolution correspond to provisions contained in clause 79 of Finance (No. 3) Bill 2011, as published by the House of Commons on 31st March 2011. Assuming that the clause is not rejected during the passage of the Bill through Parliament, those provisions will come into force when the Bill receives Royal Assent, and the Order made under the resolution will continue to have statutory effect by virtue of those provisions of the Act arising from the Bill.

A Tax Information and Impact Note covering this instrument was published at Budget on 23rd March 2011 and is available on the HMRC website at www.hmrc.gov.uk/budget2011/tiin6840.