Finance Act 2000

Amount payable by way of levy U.K.

42 (1) The amount payable by way of levy on a taxable supply is— U.K.

(a) if the supply is [F1 not] a reduced-rate supply F2 ..., the amount ascertained from the Table in accordance with sub-paragraph (2);

F3 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F4 (ba) if the supply is a reduced-rate supply of electricity, [F5 8] per cent of the amount that would be payable if the supply were a supply to which paragraph (a) applies;]

[F6 (bb) if the supply is a reduced-rate of supply of any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state, 23 per cent of the amount that would be payable if the supply were a supply to which paragraph (a) applies;]

(c) if the supply is [F7 any other] reduced-rate supply, [F8 [F9 11] per cent.] of the amount that would be payable if the supply [F10 were a supply to which paragraph (a) applies;]

F11 (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F12 TABLE

Taxable commodity supplied	Rate at which levy payable if supply is not a reduced-rate supply
Electricity	£0.00775 per kilowatt hour
Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility	£0.00775 per kilowatt hour
Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state	£0.02175 per kilogram
Any other taxable commodity	£0.06064 per kilogram]

F13 (1ZA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F14 (1A) Sub-paragraph (1) is subject to paragraph 45B.]

[F15 (1B) Sub-paragraph (1) does not apply to a deemed supply under paragraph 24A or 24B.]

(2) The levy payable on a fraction of a quantity of a commodity is that fraction of the levy payable on that quantity of the commodity.

[F16 (3) If a reduced-rate supply is part of an aid scheme within Article 25 of Commission Regulation (EC) No. 800/2008, sub-paragraph (4) cites the title and publication reference of that Regulation for the purpose of complying with Article 3(1) of that Regulation.

(4) That citation is Commission Regulation (EC) No. 800/2008 of 6 August 2008 declaring certain categories of aid compatible with the common market in application of Articles 87 and 88 of the Treaty (General block exemption Regulation) (O.J. 2008 No. L214/3) (with the reference to Articles 87 and 88 being read, as a result of the Treaty of Lisbon, as a reference to Articles 107 and 108 of the Treaty on the Functioning of the European Union).]

Textual Amendments

F1 Word in Sch. 6 para. 42(1)(a) substituted (1.11.2007) by Finance Act 2006 (c. 25), s. 172(11)(a)(16); S.I. 2007/2901, art. 2(1) (with art. 2(2)-(4))

F2 Words in Sch. 6 para. 42(1)(a) omitted (1.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 20 paras. 3(2)(a), 10

F3 Sch. 6 para. 42(1)(b) repealed (1.11.2007) by Finance Act 2006 (c. 25), s. 172(11)(b)(16), Sch. 26 Pt. 8(1); S.I. 2007/2901, art. 2(1) (with art. 2(2)-(4))

F4 Sch. 6 para. 42(1)(ba) inserted (with effect in relation to supplies treated as taking place on or after 1.4.2013) by Finance Act 2012 (c. 14), Sch. 30 paras. 20(a), 23

F5 Word in Sch. 6 para. 42(1)(ba) substituted (with effect in accordance with s. 92(5) of the amending Act) by Finance Act 2020 (c. 14), s. 92(3)(a)

F6 Sch. 6 para. 42(1)(bb) inserted (with effect in accordance with s. 92(5) of the amending Act) by Finance Act 2020 (c. 14), s. 92(3)(b)

F7 Words in Sch. 6 para. 42(1)(c) substituted (with effect in relation to supplies treated as taking place on or after 1.4.2013) by Finance Act 2012 (c. 14), Sch. 30 paras. 20(b), 23

F8 Words in Sch. 6 para. 42(1)(c) substituted (with effect in relation to supplies treated as taking place on or after 1.4.2011) by Finance Act 2010 (c. 13), s. 18

F9 Word in Sch. 6 para. 42(1)(c) substituted (1.4.2024 in relation to supplies treated as taking place on or after that date) by Finance (No. 2) Act 2023 (c. 30), s. 328(3)(5)

F10 Words in Sch. 6 para. 42(1)(c) substituted (with effect in relation to supplies of taxable commodities so far as the commodities are actually supplied on or after 1.4.2012) by Finance Act 2012 (c. 14), Sch. 30 paras. 10(a)(ii), 19

F11 Sch. 6 para. 42(1)(d) omitted (1.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 20 paras. 3(2)(b), 10

F12 Sch. 6 para. 42(1) table substituted (1.4.2024 in relation to supplies treated as taking place on or after that date) by Finance (No. 2) Act 2023 (c. 30), s. 328(2)(5)

F13 Sch. 6 para. 42(1ZA) omitted (1.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 20 paras. 3(3), 10

F14 Sch. 6 para. 42(1A) inserted (with effect where the certification period begins on or after 1.4.2009) by Finance Act 2009 (c. 10), s. 118(2), Sch. 59 para. 5

F15 Sch. 6 para. 42(1B) inserted (retrospective to 26.3.2013) by Finance Act 2013 (c. 29), Sch. 42 paras. 13, 21

F16 Sch. 6 para. 42(3)(4) inserted (8.4.2010) by Finance Act 2010 (c. 13), s. 67

Modifications etc. (not altering text)

C1 Sch. 6 para. 42 modified (retrospective to 1.4.2011) by Finance Act 2011 (c. 11), s. 79(2)(3)(6)

[F17 42A (1) This paragraph applies to a deemed supply under paragraph 24A or 24B. U.K.

(2) The amount payable by way of levy on the deemed supply is the amount ascertained by applying the relevant carbon price support rate; and the levy payable on a fraction of a kilowatt hour, kilogram or gigajoule is that fraction of the levy payable on a kilowatt hour, kilogram or gigajoule.

[F18 (3) The carbon price support rates are as follows.

Carbon price support rate commodity	Carbon price support rate
Any gas in a gaseous state that is of a kind supplied by a gas utility	£0.00331 per kilowatt hour
Any petroleum gas, or other gaseous hydrocarbon, in a liquid state	£0.05280 per kilogram
Any commodity falling within paragraph 3(1)(d) to (f)	£1.54790 per gigajoule]

(4) Sub-paragraph (2) needs to be read with paragraphs 42B and 42C.

Textual Amendments

F17 Sch. 6 paras. 42A-42D inserted (retrospective to 26.3.2013) by Finance Act 2013 (c. 29), Sch. 42 paras. 14, 21

F18 Sch. 6 para. 42A(3) substituted (with effect in relation to supplies treated as taking place on or after 1.4.2016) by Finance Act 2014 (c. 26), s. 98

42B (1) This paragraph applies for the purposes of paragraph 42A(2) if the commodity deemed to be supplied is a quantity of a commodity falling within paragraph 3(1)(d) to (f). U.K.

(2) The number of gigajoules in the quantity supplied is to be determined by reference to the total gross calorific value of that quantity.

(3) Sub-paragraph (4) applies if there is included in that quantity any coal slurry taken from a slurry pit situated at the site of a coal mine (including a disused coal mine).

(4) The gross calorific value of the coal slurry is to be left out of account in determining the total gross calorific value of that quantity.

Textual Amendments

F17 Sch. 6 paras. 42A-42D inserted (retrospective to 26.3.2013) by Finance Act 2013 (c. 29), Sch. 42 paras. 14, 21

42C (1) Sub-paragraph (2) applies for the purposes of paragraph 42A(2) if, in the calendar year in which the deemed supply is treated as taking place, carbon capture and storage technology is operated in relation to carbon dioxide generated by the station in question in producing electricity. U.K.

(2) In relation to the deemed supply, only C% of the relevant carbon price support rate is to be applied (instead of the full rate).

(3) “C%” is 100% minus the station's carbon capture percentage for the calendar year.

(4) The station's “carbon capture percentage” for the calendar year is the percentage of the station's generated carbon dioxide for that year which, through the operation of the carbon capture and storage technology, is—

(a) captured, and

(b) then disposed of by way of permanent storage.

(5) The station's “generated carbon dioxide” for the calendar year is the amount of carbon dioxide generated in the year by the station from the use of carbon price support rate commodities in producing electricity.

(6) In this paragraph “carbon capture and storage technology” and “carbon dioxide” have the meaning given by section 7(3) and (4) of the Energy Act 2010.

(7) Sub-paragraph (8) applies for the purposes of sub-paragraph (4) in relation to any carbon dioxide if—

(a) the carbon dioxide is captured but then leaks out and therefore is not disposed of by way of permanent storage, but

(b) the leak does not occur—

(i) on the land on which the station is situated,

(ii) on any other land under the control of the station's owner or a person connected with the station's owner, or

(iii) from any pipeline or other facility or installation which is operated by the station's owner or a person connected with the station's owner.

Section 1122 of the Corporation Tax Act 2010 (“connected” persons) applies for the purposes of paragraph (b).

(8) The carbon dioxide is to be treated as if it had been disposed of by way of permanent storage.

(9) If the percentage mentioned in sub-paragraph (4) is not a whole number, it is to be rounded to the nearest whole number (taking 0.5% as nearest to the next whole number).

Textual Amendments

F17 Sch. 6 paras. 42A-42D inserted (retrospective to 26.3.2013) by Finance Act 2013 (c. 29), Sch. 42 paras. 14, 21

42D (1) This paragraph applies if— U.K.

(a) an amount is determined to be payable by way of levy on a deemed supply of a quantity of a commodity under paragraph 24A or 24B, but

(b) it is later determined that that amount is too low.

(2) For the purposes of this Schedule—

(a) the person who made the deemed supply is deemed to make a further taxable supply to himself of the quantity of the commodity, and

(b) the amount payable by way of levy on that further deemed supply is—

(i) the total amount payable on the first deemed supply on the basis of the later determination mentioned in sub-paragraph (1)(b), less

(ii) the amount previously determined to be payable on the first deemed supply.]

Textual Amendments

F17 Sch. 6 paras. 42A-42D inserted (retrospective to 26.3.2013) by Finance Act 2013 (c. 29), Sch. 42 paras. 14, 21