Finance Act 2000

[F1 Deemed taxable supply: commodities to be used in combined heat and power station U.K.

Textual Amendments

F1 Sch. 6 paras. 24A-24D and cross-headings inserted (retrospective and with effect in accordance with Sch. 42 para. 22(4) of the amending Act) by Finance Act 2013 (c. 29), Sch. 42 paras. 10, 21

24B (1) Sub-paragraph (2) applies if— U.K.

(a) a quantity of a carbon price support rate commodity is brought onto, or arrives at, the CHPQA site of a fully exempt combined heat and power station or a partly exempt combined heat and power station in Great Britain,

(b) that quantity of the commodity is intended to be used in the station for producing outputs of the station, and

(c) the station is not a small generating station.

(2) For the purposes of this Schedule the operator of the station is deemed to make a taxable supply to himself of that quantity of the commodity so far as that quantity is referable to the production of electricity [F2 to which sub-paragraph (2A) does not apply].

[F3 (2A) This sub-paragraph applies to electricity so far as—

(a) it is included in the CHP Qualifying Power Output of the combined heat and power station's CHPQA scheme, and

(b) either condition A or B is met.

(2B) Condition A is that the producer of the electricity makes no supply of it to another person, but causes it to be consumed in the United Kingdom.

(2C) Condition B is that the electricity is supplied (within the meaning of Part 1 of the Electricity Act 1989 (see section 64 of that Act)) by a person who is an exempt unlicensed electricity supplier.]

(3) For the purposes of sub-paragraph (2) the extent to which a quantity of a commodity is referable to the production of electricity [F4 to which sub-paragraph (2A) does not apply] is to be determined in accordance with regulations under paragraph 24D(1).

(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 through a pipe.

(5) In sub-paragraph (1)(b) “outputs” has the meaning given by paragraph 148(9).

(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 subject to any condition.

[F5 (7) For the purposes of this paragraph—

• “CHP Qualifying Power Output” has the meaning given by section 4 of the Combined Heat and Power Quality Assurance Standard, Issue 5 (November 2013), prepared by the Department of Energy and Climate Change or, if that issue of the Standard has been replaced by another issue, by the current issue of the Standard (taking account, in either case, of any amendment which has been made to the issue);

• “CHPQA scheme”, in relation to a combined heat and power station, means the scheme in relation to which the station's CHPQA certificate was issued;

• “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 CHPQA scheme.]

Textual Amendments

F2 Words in Sch. 6 para. 24B(2) inserted (with effect in accordance with s. 63(5) of the amending Act) by Finance Act 2015 (c. 11), s. 63(2)(a)

F3 Sch. 6 paras. 24B(2A)-(2C) inserted (with effect in accordance with s. 63(5) of the amending Act) by Finance Act 2015 (c. 11), s. 63(2)(b)

F4 Words in Sch. 6 para. 24B(3) inserted (with effect in accordance with s. 63(5) of the amending Act) by Finance Act 2015 (c. 11), s. 63(2)(c)

F5 Sch. 6 para. 24B(7) substituted (with effect in accordance with s. 63(5) of the amending Act) by Finance Act 2015 (c. 11), s. 63(2)(d)

24C (1) This paragraph applies if— U.K.

(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 commodity is, or

(ii) a proportion of such a quantity is not,

referable to the production of electricity [F6 to which paragraph 24B(2A) does not apply],

(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

(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 [F7 to which paragraph 24B(2A) does not apply], and

(ii) accordingly, should have been determined to be the subject of a deemed supply under paragraph 24B.

(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 a quantity, and

(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).]

Textual Amendments

F6 Words in Sch. 6 para. 24C(1)(a) inserted (with effect in accordance with s. 63(5) of the amending Act) by Finance Act 2015 (c. 11), s. 63(3)(a)

F7 Words in Sch. 6 para. 24C(1)(c)(i) inserted (with effect in accordance with s. 63(5) of the amending Act) by Finance Act 2015 (c. 11), s. 63(3)(b)