Finance Act 2000

• (b) provision that, so far as framed by reference to any document, is framed by reference to that document as from time to time in force.

Deemed supplies under paragraph 24A, 24B, 24C or 42D

38A

• (1) A deemed supply under paragraph 24A or 24B is treated as taking place when the quantity of the commodity is brought onto, or arrives at, the site at which the station is situated or the CHPQA site of the station (as the case may be).

• (2) A deemed supply under paragraph 24C or 42D is treated as taking place upon the later determination.

42A

• (1) This paragraph applies to a deemed supply under paragraph 24A or 24B.

• (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.

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

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

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).

• (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.

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.

• (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).

42D

• (1) This paragraph applies if—

• (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.

Meaning of “exempt unlicensed electricity supplier”

152A

• (1) In this Schedule “exempt unlicensed electricity supplier” means a person—

• (a) to whom an exemption from section 4(1)(c) of the Electricity Act 1989 (persons supplying electricity to premises) has been granted by an order under section 5 of that Act, or

• (b) to whom an exemption from Article 8(1)(c) of the Electricity Supply (Northern Ireland) Order 1992 has been granted by an order under Article 9 of that Order,

except where the person is acting otherwise than for purposes connected with the carrying on of activities authorised by the exemption.

• (2) Sub-paragraph (1) applies subject to—

• (a) any direction under paragraph 151(1), and

• (b) any regulations under paragraph 151(2).

Meaning of “small generating station”

152B

• (1) In this Schedule “small generating station” means a generating station the capacity of which for producing electricity is no more than 2 megawatts.

• (2) Sub-paragraph (3) applies if a relevant station (“station X”) is one of a number of relevant stations which—

• (a) are situated in the United Kingdom, and

• (b) are owned by P or persons connected with P.

• (3) In applying sub-paragraph (1) in relation to station X, the reference to the capacity of a generating station is to be read as a reference to the capacity of station X and all the other relevant stations mentioned in sub-paragraph (2) taken together.

• (4) In sub-paragraphs (2) and (3) “relevant station” means a generating station which is neither an exempt CHP station nor a stand-by generator.

• (5) For the purposes of sub-paragraph (2)(b)—

• (a) “P” is the person who owns station X, and

• (b) section 1122 of the Corporation Tax Act 2010 (“connected” persons) applies.

• (6) Sub-paragraph (7) applies if the scheme in relation to which the CHPQA certificate of an exempt CHP station (“station Y”) is issued covers other exempt CHP stations as well.

• (7) In applying sub-paragraph (1) in relation to station Y, the reference to the capacity of a generating station is to be read as a reference to the capacity of station Y and all the other exempt CHP stations mentioned in sub-paragraph (6) taken together.

• (8) In this paragraph “exempt CHP station” means a fully exempt combined heat and power station or a partly exempt combined heat and power station.

Exemption: mineralogical and metallurgical processes

12A

• (1) A supply of a taxable commodity ... is exempt from the levy if the commodity is to be used ... in a mineralogical or metallurgical process.

• (2) “Mineralogical process” means a process falling within Division 23 of NACE Rev 2.

• (3) “Metallurgical process” means a process of any of the following descriptions.

• (4) The descriptions are—

• (a) a process falling within Division 24 of NACE Rev 2, excluding Class 24.46;

• (b) a process falling within Group 25.5 of NACE Rev 2;

• (c) a process falling within Class 25.61 of NACE Rev 2 which is—

• (i) plating, anodising etc of metals;

• (ii) heat treatment of metals;

• (iii) deburring, sandblasting, tumbling and cleaning of metals where carried out in conjunction with a process mentioned in paragraph (a) or (b).

• (4A) In this paragraph “NACE Rev 2” is as set out in Annex I to Regulation (EC) No 1893/2006 of the European Parliament and of the Council of 20 December 2006 (relating to the statistical classification of economic activities).

• (5) The Treasury may by regulations amend this paragraph so as to amend the definition of “mineralogical process”.

• (6) The Treasury may by regulations amend sub-paragraph (4) so as to add, remove or modify a description.

Controlled goods agreements

89A

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Reimbursed expenses

De-grouping charge: deferral until company leaves new group

Civil penalties for breach of excise duty requirements.

Approved profit sharing schemes: restriction on type of shares.

Approved profit sharing schemes: loan arrangements.

Gold: penalty for failure to comply with record-keeping requirements etc.

De-grouping charge: deferral until company leaves new group

Bridging renewal election

15ZA

• (1) A renewal election in respect of a single company or a group is a bridging renewal election if—

• (a) the last tonnage tax election in force in respect of the company or group (“the previous election”) expired (rather than ceasing to be in force for another reason),

• (b) in the period beginning with the expiry of the previous election and ending with the time from which the renewal election would have effect, nothing has happened which, if a tonnage tax election had been force in respect of the company or group, would have caused it to cease to be in force, and

• (c) the renewal election is made with the consent of an officer of Revenue and Customs.

• (2) An officer of Revenue and Customs may not give consent for the purposes of this paragraph unless satisfied that—

• (a) the consent was requested without delay after the company or (as appropriate) a company in the group first became aware that the previous election had expired, and

• (b) the conduct of the company or group in connection with tonnage tax has not at any time involved conduct the main purpose (or one of the main purposes) of which was the avoidance of tax.

• (3) Where a bridging renewal election is made, the previous election is to be treated as having remained in force until the time when the bridging renewal election takes effect.

De-grouping charge: deferral until company leaves new group

Meaning of managing a qualifying ship

18A

A company is regarded for the purposes of this Schedule as managing a qualifying ship if—

• (a) the ship is a qualifying ship operated by a tonnage tax company (“the operator”),

• (b) the company carries on activities in relation to the ship that would be tonnage tax activities of the operator if the operator carried them on, and

• (c) those activities as carried on by the company represent a significant contribution to the operation of the ship.