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

EXPLANATORY NOTE

(This note is not part of the Order)

The Order suspends the exemption from climate change levy provided for in paragraph 18A(1) of Schedule 6 to the Finance Act 2000 (exemption if commodity supplied for use in a recycling process for which there is a relevant competing process), with effect from 1st April 2011.

The Order is made in exercise of a power contained in resolution number 48, 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 Schedule 6 to the Finance Act 2000 is to have effect in relation to any supply of a taxable commodity made on or after 1st April 2011 as if paragraph 18A, and any reference to that paragraph, were omitted. It also provides that such an order may apply generally, or only in relation to supplies of a description specified in the order.

The provisions of the resolution correspond to provisions contained in clause 80 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/tiin6845.