Finance Act 2000

(3D) For the purposes of this section interest shall be treated as received by any person if it is received by another person at his direction or with his consent. (3E) For the purposes of this section the following shall be treated as interest— (a) any dividend in respect of a share in a building society; (b) any amount to which a person holding a relevant discounted security is entitled on the redemption of that security; and (c) any foreign dividend. (3F) In subsection (3E)(b) above “relevant discounted security” has the meaning given by paragraph 3 of Schedule 13 to the Finance Act 1996. (3G) In subsection (3E)(c) above “foreign dividend” means any annual payment, interest or dividend payable out of, or in respect of the stocks, funds, shares or securities of— (a) a body of persons that is not resident in the United Kingdom, or (b) a government or public or local authority in a country outside the United Kingdom.

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• (10) Section 482A of Taxes Act 1988 (audit powers in relation to non-residents) shall cease to have effect.

• (11) This section has effect in relation to amounts paid, credited or received on or after 6th April 2001.

International exchange of information: general

146

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

International exchange of information: inheritance tax

147

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Use of minimum wage information

148

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Orders for the delivery of documents

149

• (1) After section 20B of the Taxes Management Act 1970 insert—

(20BA) (1) The appropriate judicial authority may make an order under this section if satisfied on information on oath given by an authorised officer of the Board— (a) that there is reasonable ground for suspecting that an offence involving serious fraud in connection with, or in relation to, tax is being, has been or is about to be committed, and (b) that documents which may be required as evidence for the purposes of any proceedings in respect of such an offence are or may be in the power or possession of any person. (2) An order under this section is an order requiring the person who appears to the authority to have in his possession or power the documents specified or described in the order to deliver them to an officer of the Board within— (a) ten working days after the day on which notice of the order is served on him, or (b) such shorter or longer period as may be specified in the order. For this purpose a “working day” means any day other than a Saturday, Sunday or public holiday. (3) Where in Scotland the information mentioned in subsection (1) above relates to persons residing or having places of business at addresses situated in different sheriffdoms— (a) an application for an order may be made to the sheriff for the sheriffdom in which any of the addresses is situated, and (b) where the sheriff makes an order in respect of a person residing or having a place of business in his own sheriffdom, he may also make orders in respect of all or any of the other persons to whom the information relates (whether or not they have an address within the sheriffdom). (4) Schedule 1AA to this Act contains provisions supplementing this section.

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• (2) After Schedule 1 to the Taxes Management Act 1970, insert the Schedule 1AA set out in Schedule 39 to this Act.

• (3) In section 20BB of that Act (falsification etc. of documents)—

• (a) in subsection (1)(a), after “above" insert “ or an order under section 20BA above ”;

• (b) in subsection (3), after “notice is given" insert “ or the order is made ”; and

• (c) after “notice", in the second place where it occurs in that subsection, insert “ or order ”.

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Search warrants: miscellaneous amendments

150

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Provisions relating to government finance

Debt Management Account

151

In Schedule 5A to the National Loans Act 1968 (the Debt Management Account), in paragraph 11, after sub-paragraph (1) (excess of Account’s liabilities over its assets to be liability of National Loans Fund) insert—

(1A) The Treasury may pay from the National Loans Fund to the Debt Management Account an amount representing all or any of any excess mentioned in sub-paragraph (1) above, and if they do the liability there mentioned shall be extinguished or reduced accordingly.

.

National Savings Bank

152

• (1) In section 4 of the National Savings Bank Act 1971 (deposits: limits and minimum balances), after subsection (3) insert—

(4) Regulations under section 2 of this Act may include any provision that may be included in an order under this section.

.

• (2) In section 26 of that Act (regulations and orders etc.), for subsections (2) and (3) (parliamentary control of regulations under section 2 and orders under section 4) substitute—

(2) A statutory instrument containing— (a) regulations under section 2 of this Act, or (b) an order under section 4 of this Act, shall be subject to annulment in pursuance of a resolution of either House of Parliament.

.

• (3) If a draft of a statutory instrument containing an order under section 4 of that Act has been laid before Parliament, but the instrument has not been made, before the day on which this Act is passed, the instrument may be made either—

• (a) as if section 26 of that Act had not been amended by this section, or

• (b) in reliance on section 26(2) as substituted by this section.

The instrument shall be taken to be made as mentioned in paragraph (a) unless it states that it is made in reliance on section 26(2) as substituted by this section.

National savings certificates

153

• (1) This section applies to a national savings certificate issued under section 12 of the National Loans Act 1968 if—

• (a) it was purchased on or before 7th October 1999, and

• (b) the fifth anniversary of its purchase falls after the day on which this Act is passed.

• (2) The power of the Treasury (under the prospectus under which the certificate was issued) to alter or end the extension terms for the certificate shall have effect as if it included power for the Treasury to decide before the fifth anniversary of the certificate’s purchase that the extension terms for the certificate are to involve it (so far as not cashed in) undergoing automatic roll-over on that anniversary.

• (3) Where a certificate undergoes automatic roll-over on any occasion, the Treasury has power to decide before the fifth anniversary of that occasion that the extension terms for the certificate are to involve it (so far as not cashed in) undergoing automatic roll-over on that anniversary.

• (4) For the purposes of this section a certificate undergoes “automatic roll-over” on an occasion if during the period of 5 years beginning with that occasion the certificate (so far as not cashed in) will earn interest as though it were a national savings certificate—

• (a) purchased on that occasion for a term of 5 years at a price equal to the value (rounded, if necessary, to the nearest penny) of the certificate on that occasion, and

• (b) earning such interest (whether at fixed rates or at rates that give effect to index-linking or partly one and partly the other) as has been decided by the Treasury before that occasion.

• (5) Subject to subsections (2) and (3), a certificate to which this section applies continues (so far as not cashed in) to be held on the terms of the prospectus under which it was issued.

However, any obligation of the Director of Savings to take steps to inform the holder of the certificate before the fifth anniversary of its purchase of what is to happen to the certificate after that anniversary extends to taking the corresponding steps in relation to the fifth anniversary of each occasion on which the certificate has undergone automatic roll-over.

• (6) Nothing in this section shall be taken as prejudicing the rights of the holder of a certificate to which this section applies to apply at any time to cash in the certificate.

• (7) References in this section to cashing in a certificate include reinvesting it.

Exchange Equalisation Account

154

• (1) For section 4 of the Exchange Equalisation Account Act 1979 (examination and certification of the Account) substitute—

(4) (1) For each financial year in which the Account operates the Treasury shall prepare, in such form and on such basis as they may prescribe, accounts in relation to the transactions, assets and liabilities of the Account. (2) The Treasury shall send the accounts to the Comptroller and Auditor General not later than 30th November of the financial year following that to which the accounts relate. (3) The Comptroller and Auditor General shall examine and certify the accounts, issue a report on them and send the certified accounts and the report to the Treasury not later than 15th January of that year. (4) The Treasury shall lay the certified accounts and the report before each House of Parliament not later than 31st January of that year. (5) In certifying accounts under subsection (3) above the Comptroller and Auditor General shall state whether or not it is his opinion, having regard to his examination of the accounts, that— (a) the resources of the Account have been used in accordance with the provisions of this Act; (b) the transactions of the Account are in accordance with any relevant authority; and (c) the accounts have been prepared in the form, and on the basis, prescribed under subsection (1) above. (6) The Treasury may by order made by statutory instrument amend the date for the time being specified in any of subsections (2) to (4) above. (7) Before making an order under subsection (6) above the Treasury shall consult the Comptroller and Auditor General. (8) A statutory instrument containing an order under subsection (6) above shall be subject to annulment in pursuance of a resolution of the House of Commons. (9) In this section a reference to the use of resources is a reference to their expenditure, consumption or reduction in value.

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• (2) This section applies in relation to the operation of the Exchange Equalisation Account in the financial year ending 31st March 2001 and subsequent financial years.

Supplementary provisions

Interpretation

155

In this Act “the Taxes Act 1988” means the Income and Corporation Taxes Act 1988 and “ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005 and “ITA 2007” means the Income Tax Act 2007.

Repeals

156

• (1) The enactments mentioned in Schedule 40 to this Act (which include provisions that are spent or of no practical utility) are repealed to the extent specified in the third column of that Schedule.

• (2) The repeals specified in that Schedule have effect subject to the commencement provisions and savings contained or referred to in the notes set out in that Schedule.

Short title

157

This Act may be cited as the Finance Act 2000.

SCHEDULE 1

Converting unleaded petrol into leaded petrol

1

• (1) In paragraph 1(1) of Schedule 2A to the Hydrocarbon Oil Duties Act 1979 (converting unleaded petrol into leaded petrol), before paragraph (a) insert—

(aa) adding lead to unleaded petrol in respect of which duty has been charged at the rate specified in section 6(1A)(a);

.

• (2) In paragraph 8 of that Schedule (rate for mixtures of light oil), for sub-paragraph (2) substitute—

(2) In the case of a mixture produced in contravention of paragraph 1 above, the rate is the rate in force under section 6(1A)(b) at the time the mixture is produced.

.

Converting unleaded petrol into higher octane unleaded petrol

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Mixing different kinds of unleaded petrol

3

• (1) After paragraph 2 of that Schedule insert—

(2A) (1) A mixture which is unleaded petrol is produced in contravention of this paragraph if the mixture is produced by mixing unleaded petrol of any two or more of the following descriptions— (a) petrol on which duty has been paid at the rate specified in section 6(1A)(a), (b) petrol in respect of which a rebate has been allowed under section 13A(1A)(b), (c) petrol in respect of which a rebate has been allowed under section 13A(1A)(a), where the mixture produced is petrol of a description subject to a higher effective rate of duty than one or more of the ingredients of the mixture. (2) The comparison required by sub-paragraph (1) shall be made by reference to the effective rates of duty in force at the time the mixture is produced. (3) This paragraph is subject to any direction given under paragraph 3.

.

• (2) In paragraph 3 of that Schedule, for “paragraph 1 above or (as the case may be) paragraph 2 above" substitute “ paragraph 1, 2 or 2A above ”.

• (3) In paragraph 8 of that Schedule, after sub-paragraph (3) insert—

(3A) In the case of a mixture produced in contravention of paragraph 2A above, the rate is— (a) in the case of a mixture that is higher octane unleaded petrol, the rate produced by deducting from the rate in force under section 6(1A)(b) at the time the mixture is produced the rebate which at that time is in force under section 13A(1A)(a); (b) in the case of a mixture that is neither higher octane unleaded petrol nor ultra low sulphur petrol, the rate produced by deducting from the rate in force under section 6(1A)(b) at the time the mixture is produced the rebate which at that time is in force under section 13A(1A)(b).

.

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation

4

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SCHEDULE 2

Introduction

1

The Betting and Gaming Duties Act 1981 is amended as follows.

Exceptions from requirement to be licensed

2

In section 21(3A) (types of amusement machine excepted from requirement to be licensed) in paragraph (b) (five-penny machine which is a small-prize machine) for “five-penny machine" substitute “ ten-penny machine ”.

Amusement machine licence duty

3

• (1) In section 22(2) (definition of small-prize machines)—

• (a) after “Act" insert “ (a) ”;

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) at the end insert—

(b) an amusement machine is a medium-prize machine if it is a prize machine and the value or aggregate value of the benefits in money or money’s worth, which any player who is successful in a single game played by means of the machine may receive, can exceed £8 but cannot exceed £15.

.

• (2) In section 22(3) (power of Commissioners to amend the sum mentioned in the definition of prize machines), for “the sum" substitute “ a sum ”.

Amount of duty

4

• (1) In section 23(2) (amount of duty)—

• (a) in paragraph (b) for “column 2, column 3 or column 4 of the Table" substitute “ Category A, Category B, Category C, Category D or Category E ”;

• (b) for “the rate in column 2, the rate in column 3, or the rate in column 4" substitute “ the rate for the category of machine in question in column 2, 3, 4, 5 or 6 of the Table ”;

• (c) for the Table substitute—

(1)	(2)	(3)	(4)	(5)	(6)
Period (in months) for which licence granted	Category A	Category B	Category C	Category D	Category E
	£	£	£	£	£
1	30	80	80	165	220
2	50	150	160	320	425
3	75	220	230	470	615
4	95	285	300	605	800
5	120	345	360	735	970
6	140	400	420	855	1,125
7	160	450	475	965	1,270
8	185	500	525	1,065	1,405
9	205	540	570	1,155	1,525
10	225	580	610	1,240	1,635
11	240	615	650	1,310	1,730
12	250	645	680	1,375	1,815

• (2) At the end of section 23 insert—

(3) The machines comprised in each category referred to in this section are as follows— Category A: any machine which is not a gaming machine; Category B: any gaming machine which is a small-prize machine or five-penny machine; Category C: any gaming machine which is a medium-prize machine, unless it is also a five-penny machine; Category D: any gaming machine which is a ten-penny machine, unless it is also— (a) a five-penny machine, (b) a small-prize machine, or (c) a medium-prize machine; Category E: any machine which is not in any other category.

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Meaning of amusement machine

5

• (1) In section 25 (meaning of amusement machine), in paragraph (b) of subsection (1B) (meaning of video machine) omit “, other than one consisting only in a blank surface onto which light is projected”.

• (2) In that section, in subsection (7) (application of provisions to a machine that falls to be treated as more than one machine) omit the word “or" at the end of paragraph (c) and after that paragraph insert—

(cc) medium-prize machines, (cd) ten-penny machines, or

.

Supplementary provisions

6

In section 26(2) (definitions), after the definition of “five-penny machine" insert—

“ten-penny machine" means an amusement machine which can only be played by the insertion into the machine of coins of a denomination, or aggregate denomination, not exceeding 10p;

.

Paragraphs 2 to 6: commencement

7

• (1) Paragraphs 2 to 4, 5(2) and 6 shall have effect in relation to any amusement machine licence for which an application is received by the Commissioners of Customs and Excise after 4th August 2000.

• (2) Paragraph 5(1) shall have effect on and after the day on which this Act is passed.

Seasonal licences: duration

8

• (1) Amend paragraph 4 of Schedule 4 as follows.

• (2) In sub-paragraph (2) (which provides for a seasonal licence to remain in force during October of the year for which it is granted) for the words from “during October of that year" to the end substitute

the provision of that number of relevant machines on the premises during the period in that year— (a) beginning with 1st October; and (b) ending with the Sunday before the first Monday in November.

.

• (3) In sub-paragraph (8) (meaning of “winter period”) for “November to February" substitute “ the period beginning with the first Monday in November and ending with the last day of February ”.

• (4) Sub-paragraph (2) applies in relation to any licence expressed to be granted for a period beginning with 1st April in 2000 or any subsequent year.

• (5) Sub-paragraph (3) has effect for determining what was comprised in the winter period beginning in 1999, and for determining what is comprised in any subsequent winter period.

Unlicensed amusement machines: duty chargeable

9

After section 24 insert—

(24A) Schedule 4A to this Act (which provides for the recovery of amusement machine licence duty in relation to unlawfully unlicensed machines) shall have effect.

.

10

• (1) After Schedule 4 insert—

Schedule 4A (1) This Schedule applies where it appears to the Commissioners that an amusement machine is or was provided for play on premises in contravention of section 21(1) or 24(3) or (4) of this Act. (2) (1) The Commissioners may give a notice which complies with the requirements of sub-paragraphs (3) and (4) below. (2) In this Schedule such a notice is referred to as a “default notice". (3) The notice shall state that one or more amusement machines appear to have been provided for play on specified premises (“relevant premises”) during a specified period (the “alleged default period”)— (a) the first day of which falls not more than three years before the date of the notice, and (b) the last day of which falls on or before the date of the notice. (4) The notice shall request the production to the Commissioners on or before a specified date (the “due date”) of every relevant amusement machine licence. (5) For the purposes of sub-paragraph (4) above an amusement machine licence is a relevant licence if, at any time during the alleged default period, it was in force in relation to an amusement machine provided for play on the relevant premises at that time. (6) A single default notice may relate to— (a) different alleged default periods, or (b) different relevant premises. (7) A default notice shall be deemed to have been given if it is— (a) left at, or posted to, the relevant premises, or (b) given to, or posted to or left at the proper address of one or more persons falling within sub-paragraph (8) below. (8) Those persons are— (a) one or more of the persons who are or appear to be, or who at any time during the alleged default period were or appear to have been, responsible persons in relation to the relevant premises or an amusement machine provided for play on those premises, or (b) any person who is the representative of such a person. (3) (1) In any case where— (a) the Commissioners give a default notice, (b) the due date specified in the notice passes, and (c) it appears to the Commissioners that at some time during the alleged default period specified in the notice one or more amusement machines were provided for play on the relevant premises so specified without an amusement machine licence being in force in relation to the machines, the Commissioners may grant, in accordance with this paragraph, one or more licences in relation to each of the machines. (2) In this Schedule— - “default licence” means a licence granted by the Commissioners under sub-paragraph (1) above; - “unlicensed machine” means a machine in relation to which a default licence is granted by the Commissioners. (3) The Commissioners may grant a separate default licence for each period of consecutive days— (a) which falls within the alleged default period, and (b) for which no amusement machine licence in force in relation to the unlicensed machine was produced. (4) The Commissioners may grant a default licence in relation to an unlicensed machine even though the period of that licence would include a day or days when the unlicensed machine was provided for play in contravention of section 21(1) or 24(3) or (4) of this Act on premises other than the relevant premises specified in the applicable default notice. (5) In a case where the Commissioners grant a default licence in accordance with sub-paragraph (4) above, references in this Schedule to the relevant premises shall be construed in relation to any particular time as references to the premises on which the machine was provided for play at that time. (6) The Commissioners may grant a default licence even though no application has been made for it. (7) A default licence may be granted for a period of any length (whether or not a licence under Schedule 4 to this Act could be granted for a period of that length). (4) (1) This paragraph applies where a default licence is granted in relation to an unlicensed machine. (2) The Commissioners may, subject to the following provisions of this paragraph, assess to the best of their judgement the amount which would have been payable under this Act as amusement machine licence duty if the default licence had been an amusement machine licence granted under Schedule 4 to this Act. (3) The Commissioners shall make the assessment using the rates of amusement machine licence duty which apply in relation to amusement machine licences granted in consequence of applications received by the Commissioners on the due date. (4) If the period of the licence is 12 months or less, the assessment shall be made as if an amusement machine licence had been granted in relation to the unlicensed machine for that period. (5) If the period of the licence is longer than 12 months, the assessment shall be made as if— (a) a separate amusement machine licence had been granted in relation to the unlicensed machine for each complete period of 12 months falling wholly within the period of the licence, and (b) a further amusement machine licence had been granted in relation to the unlicensed machine for any remaining part of the period of the licence. (6) Sub-paragraphs (7) and (8) below shall apply in relation to an assessment to be made in any case where— (a) the period of a licence mentioned in sub-paragraph (4) above, or (b) the part of the period mentioned in sub-paragraph (5)(b) above, is not a period of complete months. (7) Any period of less than a month comprised in the period or the part of the period shall be treated as a complete month; and accordingly the period or the part of the period in question shall be treated as if it consisted of a complete month or, as the case may be, complete months. (8) The amusement machine licence treated as granted for such a period, or for such a part of a period, shall be treated as having been— (a) granted for that period, or that part of the period, as extended in accordance with sub-paragraph (7) above, and (b) surrendered at the end of the last day of the period mentioned in sub-paragraph (4) above or, as the case may be, of the part of the period mentioned in sub-paragraph (5)(b) above. (5) (1) Where an amount has been assessed under paragraph 4 above and notified to a responsible person or his representative, that amount— (a) shall be deemed to be an amount of duty charged in accordance with section 22 of this Act on an amusement machine licence within the meaning of section 21 of this Act, (b) shall be due from the responsible person, and (c) may be recovered accordingly unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced. (2) The responsible persons to whom an assessment may be notified are any one or more of the persons who are or appear to be, or at any time during the period to which the assessment relates were or appear to have been, responsible persons in relation to the unlicensed machine or the relevant premises. (3) An assessment shall be deemed to have been notified to a person if it is— (a) given to him, or (b) left at or posted to his proper address. (4) But an assessment shall not be deemed to have been notified to a person unless and until— (a) the default licence in relation to which the assessment has been made, or (b) a copy of that licence, has been given to him, or left at or posted to his proper address. (5) Where an amount has been assessed and notified to more than one responsible person (or his representative), that amount shall be recoverable jointly and severally from any or all of the responsible persons. (6) Arrangements made in accordance with paragraph 7A of Schedule 4 to this Act do not apply in relation to an amount assessed and notified in accordance with this paragraph. (6) (1) Section 14 of the Finance Act 1994 (reviews of decisions) shall apply to so much of any decision by the Commissioners as is of any of the kinds mentioned in sub-paragraph (2) below, as it applies to the decisions mentioned in subsection (1) of that section. (2) Those decisions are— (a) any decision that a default licence should be granted, (b) any decision contained in an assessment under paragraph 4 above that a person is liable to pay an amount of duty, and (c) any decision contained in an assessment under paragraph 4 above as to the amount of a person’s liability. (3) Sub-paragraph (4) below applies where the Commissioners— (a) have given a default notice, and (b) in consequence of so doing have granted a default licence. (4) An assessment made under paragraph 4 above in relation to the default licence may not be notified to a responsible person (or his representative) at any time after the end of the period of one year beginning with the due date specified in the default notice. (5) The reference to three years in paragraph 2(3)(a) above shall have effect as if it were a reference to twenty years in any case where sub-paragraph (6) or (7) below applies. (6) This sub-paragraph applies where an amusement machine has been provided for play in circumstances where a person— (a) has, by virtue of conduct engaged in for the purpose of evading any amount of amusement machine licence duty, become liable to a penalty under section 8 of the Finance Act 1994, or (b) has been convicted of an offence under section 24(6) of this Act. (7) This sub-paragraph applies where an amusement machine has been provided for play in circumstances where proceedings for an offence under section 24(6) of this Act would have been commenced or continued against a person (whether or not the person assessed), but for their having been compounded under section 152(a) of the Customs and Excise Management Act 1979. (7) (1) The following provisions of this paragraph apply for the purposes of this Schedule. (2) A person is a responsible person in relation to an amusement machine at a particular time if, at that time, he is or was— (a) the owner or hirer of the machine, or (b) a party to any contract under which the machine may be, or may have been, or is or was required to be, on the relevant premises at that time. (3) A person is a responsible person in relation to relevant premises at a particular time if, at that time, he is or was— (a) the owner, lessee or occupier of the premises, or (b) responsible to the owner, lessee or occupier for the management of the premises, or (c) responsible for issuing or exchanging coins or tokens for use in playing any amusement machine on the premises, or otherwise for controlling the use of any such machine, or (d) responsible for controlling the admission of persons to the premises or for providing persons resorting to the premises with any goods or services. (4) A person’s representative is— (a) his personal representative, (b) his trustee in bankruptcy, (c) any receiver or liquidator appointed in relation to him or any of his property, or (d) any other person acting in a representative capacity in relation to him. (5) The proper address of a person is— (a) in the case of a body corporate, its registered office or principal office, and (b) in any other case— (i) his last known place of abode or business, or (ii) any vessel or aircraft to which he may belong or have lately belonged. (6) An item is only to be treated as posted to an address or place if it has been sent there by registered post or the recorded delivery service. (8) The grant of a default licence in relation to an unlicensed machine shall be without prejudice to any liability arising under section 24 of this Act in relation to the machine.

.

• (2) This paragraph has effect in relation to amusement machines which appear to the Commissioners of Customs and Excise to have been provided for play on premises in contravention of section 21(1) or 24(3) or (4) of the Betting and Gaming Duties Act 1981 on or after the day falling three years before the day on which this Act is passed.

SCHEDULE 3

After Part I of Schedule 1 to the Vehicle Excise and Registration Act 1994, insert—

SCHEDULE 4

Introduction

1

• (1) This Schedule applies to vehicles in respect of which different rates of vehicle excise duty are, under the provisions listed below, chargeable in respect of vehicles by reference to characteristics of the vehicle.

• (2) The provisions referred to in sub-paragraph (1) are—

Part I of Schedule 1 to the Vehicle Excise and Registration Act 1994 (the general rate),

Part IA of that Schedule (graduated rates for light passenger vehicles first registered on or after 1st March 2001), or

Part II of that Schedule (motorcycles).

Particulars to be furnished on application for licence

2

• (1) The Secretary of State may make provision by regulations as to the particulars to be furnished on an application for a vehicle licence in respect of a vehicle to which this Schedule applies.

• (2) The regulations may make different provision for different descriptions of vehicle and different descriptions of licence.

• (3) The prescribed particulars may include—

• (a) particulars other than those required for the purposes of vehicle excise duty, and

• (b) particulars other than with respect to the vehicle in respect of which the licence is to be taken out.

• (4) Every person making an application with respect to which regulations under this paragraph are in force shall—

• (a) furnish such particulars as may be prescribed by the regulations, and

• (b) make such a declaration as may be specified by the Secretary of State.

• (5) A person applying for a licence need not make the declaration specified for the purposes of sub-paragraph (4)(b) if he agrees to comply with such conditions as may be specified in relation to him by the Secretary of State.

The conditions which may be specified include—

• (a) a condition that the prescribed particulars are furnished by being transmitted to the Secretary of State by such electronic means as he may specify; and

• (b) a condition requiring such payments as may be specified by the Secretary of State to be made to him in respect of—

• (i) steps taken by him for facilitating compliance by any person with any condition falling within paragraph (a); and

• (ii) in such circumstances as may be so specified, the processing of applications for vehicle licences where particulars are transmitted in accordance with that paragraph.

• (6) In relation to applications with respect to which regulations under this paragraph are in force, the preceding provisions of this paragraph have effect in place of the provisions of subsections (1) to (3B) of section 7 of the Vehicle Excise and Registration Act 1994.

Power to require evidence in support of application

3

The Secretary of State may make provision by regulations—

• (a) requiring an application for a vehicle licence in respect of a vehicle to which this Schedule applies to be supported by such documentary or other evidence as may be specified in the regulations, and

• (b) authorising him to refuse to issue the licence applied for if such evidence is not provided.

Powers exercisable where licence issued on basis of incorrect application

4

The powers conferred by paragraphs 5 to 11 below are exercisable in a case where—

• (a) a vehicle licence is issued to a person on the basis of an application stating that the vehicle—

• (i) is a vehicle to which this Schedule applies, or

• (ii) is a vehicle to which this Schedule applies in respect of which a particular amount of vehicle excise duty falls to be paid, and

• (b) the vehicle is not such a vehicle or, as the case may be, is one in respect of which duty falls to be paid at a higher rate.

Power to declare licence void

5

The Secretary of State may by notice sent by post to the person inform him that the licence is void as from the time when it was granted.

Power to require payment of balance of duty

6

• (1) The Secretary of State may by notice sent by post to the person require him to secure that the additional duty payable is paid within such reasonable period as is specified in the notice.

• (2) If that requirement is not complied with, the Secretary of State may by notice sent by post to the person inform him that the licence is void as from the time when it was granted.

If he does so, the licence shall be void as from the time when it was granted.

Power to require delivery up of licence

7

The Secretary of State may in a notice under paragraph 5 or 6(2) require the person to whom it is sent to deliver up the licence within such reasonable period as is specified in the notice.

Power to require delivery up of licence and payment in respect of duty

8

• (1) The Secretary of State may in a notice under paragraph 5 or 6(2) require the person to whom it is sent—

• (a) to deliver up the licence within such reasonable period as is specified in the notice, and

• (b) on doing so to pay an amount equal to the monthly duty shortfall for each month, or part of a month, in the relevant period.

• (2) The “monthly duty shortfall” means one-twelfth of the difference between—

• (a) the duty that would have been payable for a licence for a period of twelve months if the vehicle had been correctly described in the application, and

• (b) that duty payable in respect of such a licence on the basis of the description in the application as made.

For this purpose the amount of the duty payable shall be ascertained by reference to the rates in force at the beginning of the relevant period.

Failure to deliver up licence

9

• (1) A person who—

• (a) is required by notice under paragraph 7 or 8(1)(a) above to deliver up a licence, and

• (b) fails to comply with the requirement contained in the notice,

commits an offence.

• (2) A person committing such an offence is liable on summary conviction to a penalty not exceeding whichever is the greater of—

• (a) level 3 on the standard scale, and

• (b) five times the annual duty shortfall.

• (3) The “annual duty shortfall” means the difference between—

• (a) the duty that would have been payable for a licence for a period of twelve months if the vehicle had been correctly described in the application, and

• (b) that duty payable in respect of a licence for a period of twelve months in respect of the vehicle as described in the application.

For this purpose the amount of the duty payable shall be ascertained by reference to the rates in force at the beginning of the relevant period.

Failure to deliver up licence: additional liability

10

• (1) Where a person has been convicted of an offence under paragraph 9, the court shall (in addition to any penalty which it may impose under that paragraph) order him to pay an amount equal to the monthly duty shortfall for each month, or part of a month, in the relevant period (or so much of the relevant period as falls before the making of the order).

• (2) In sub-paragraph (1) the “monthly duty shortfall” has the meaning given by paragraph 8(2).

• (3) Where—

• (a) a person has been convicted of an offence under paragraph 9, and

• (b) a requirement to pay an amount with respect to that licence has been imposed on that person by virtue of paragraph 8(1)(b),

the order to pay an amount under this paragraph has effect instead of that requirement and the amount to be paid under the order shall be reduced by any amount actually paid in pursuance of the requirement.

Meaning of the “relevant period"

11

References in this Schedule to the “relevant period" are to the period—

• (a) beginning with the first day of the period for which the licence was applied for or, if later, the day on which the licence first was to have effect, and

• (b) ending with whichever is the earliest of the following times—

• (i) the end of the month during which the licence was required to be delivered up;

• (ii) the end of the month during which the licence was actually delivered up;

• (iii) the date on which the licence was due to expire;

• (iv) the end of the month preceding that in which there first had effect a new vehicle licence for the vehicle in question.

Construction and effect

12

• (1) This Schedule and the Vehicle and Excise Registration Act 1994 shall be construed and have effect as if this Schedule were contained in that Act.

• (2) References in any other enactment to that Act shall be construed and have effect accordingly as including references to this Schedule.

SCHEDULE 5

1

Part VIII of Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of vehicle excise duty: goods vehicles) is amended as follows.

2

For the Table in paragraph 9(1) (rigid goods vehicles not satisfying reduced pollution requirements and with a revenue weight exceeding 3,500 kilograms but not exceeding 44,000 kilograms) substitute—

Revenue weight of vehicle	Revenue weight of vehicle	Rate	Rate	Rate
(1)	(2)	(3)	(4)	(5)
Exceeding	Not Exceeding	Two axle vehicle	Three axle vehicle	Four or more axle vehicle
kgs	kgs	£	£	£
3,500	7,500	165	165	165
7,500	12,000	300	300	300
12,000	13,000	470	490	350
13,000	14,000	650	490	350
14,000	15,000	840	490	350
15,000	17,000	1,320	490	350
17,000	19,000	1,600	850	350
19,000	21,000	1,600	1,020	350
21,000	23,000	1,600	1,470	510
23,000	25,000	1,600	2,230	830
25,000	27,000	1,600	2,340	1,470
27,000	29,000	1,600	2,340	2,320
29,000	31,000	1,600	2,340	3,360
31,000	44,000	1,600	2,340	4,400

3

For the Table in paragraph 9B (rigid goods vehicles satisfying reduced pollution requirements and with a revenue weight exceeding 3,500 kilograms but not exceeding 44,000 kilograms) substitute—

Revenue weight of vehicle	Revenue weight of vehicle	Rate	Rate	Rate
(1)	(2)	(3)	(4)	(5)
Exceeding	Not Exceeding	Two axle vehicle	Three axle vehicle	Four or more axle vehicle
kgs	kgs	£	£	£
3,500	7,500	160	160	160
7,500	12,000	160	160	160
12,000	13,000	160	160	160
13,000	14,000	160	160	160
14,000	15,000	160	160	160
15,000	17,000	320	160	160
17,000	19,000	600	160	160
19,000	21,000	600	160	160
21,000	23,000	600	470	160
23,000	25,000	600	1,230	160
25,000	27,000	600	1,340	470
27,000	29,000	600	1,340	1,320
29,000	31,000	600	1,340	2,360
31,000	44,000	600	1,340	3,400

4

For the Table in paragraph 11(1) (tractive units not satisfying reduced pollution requirements and with a revenue weight exceeding 3,500 kilograms but not exceeding 44,000 kilograms) substitute—

Revenue weight of tractive unit	Revenue weight of tractive unit	Rate for tractive unit with two axles	Rate for tractive unit with two axles	Rate for tractive unit with two axles	Rate for tractive unit with three or more axles	Rate for tractive unit with three or more axles	Rate for tractive unit with three or more axles
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
Exceeding	Not exceeding	Any no. of semi-trailer axles	2 or more semi-trailer axles	3 or more semi-trailer axles	Any no. of semi-trailer axles	2 or more semi-trailer axles	3 or more semi-trailer axles
kgs	kgs	£	£	£	£	£	£
3,500	7,500	165	165	165	165	165	165
7,500	12,000	300	300	300	300	300	300
12,000	16,000	460	460	460	460	460	460
16,000	20,000	520	460	460	460	460	460
20,000	23,000	810	460	460	460	460	460
23,000	26,000	1,190	590	460	590	460	460
26,000	28,000	1,190	1,130	460	1,130	460	460
28,000	31,000	1,740	1,740	1,090	1,740	660	460
31,000	33,000	2,530	2,530	1,740	2,530	1,000	460
33,000	34,000	5,170	5,170	1,740	2,530	1,470	570
34,000	35,000	5,170	5,170	2,340	2,530	2,100	860
35,000	36,000	6,750	6,750	2,340	2,530	2,100	860
36,000	38,000	9,250	9,250	2,710	2,820	2,820	1,280
38,000	41,000	9,250	9,250	3,950	3,750	4,250	2,500
41,000	44,000	9,250	9,250	3,950	7,250	7,250	2,950

5

For the Table in paragraph 11B (tractive units satisfying reduced pollution requirements and with a revenue weight exceeding 3,500 kilograms but not exceeding 44,000 kilograms) substitute—

Revenue weight of tractive unit	Revenue weight of tractive unit	Rate for tractive unit with two axles	Rate for tractive unit with two axles	Rate for tractive unit with two axles	Rate for tractive unit with three or more axles	Rate for tractive unit with three or more axles	Rate for tractive unit with three or more axles
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
Exceeding	Not exceeding	Any no. of semi-trailer axles	2 or more semi-trailer axles	3 or more semi-trailer axles	Any no. of semi-trailer axles	2 or more semi-trailer axles	3 or more semi-trailer axles
kgs	kgs	£	£	£	£	£	£
3,500	7,500	160	160	160	160	160	160
7,500	12,000	160	160	160	160	160	160
12,000	16,000	160	160	160	160	160	160
16,000	20,000	160	160	160	160	160	160
20,000	23,000	160	160	160	160	160	160
23,000	26,000	190	160	160	160	160	160
26,000	28,000	190	160	160	160	160	160
28,000	31,000	740	740	160	740	160	160
31,000	33,000	1,530	1,530	740	1,530	160	160
33,000	34,000	4,170	4,170	740	1,530	470	160
34,000	35,000	4,170	4,170	1,340	1,530	1,100	160
35,000	36,000	5,750	5,750	1,340	1,530	1,100	160
36,000	38,000	8,250	8,250	1,710	1,820	1,820	280
38,000	41,000	8,250	8,250	2,950	2,750	3,250	1,500
41,000	44,000	8,250	8,250	2,950	6,250	6,250	1,950

6

• (1) In the following provisions—

• (a) in paragraph 11(1), after “Subject to sub-paragraphs (2) and (3)", and

• (b) in paragraph 11A(2), after “Subject to sub-paragraph (3)",

insert “ and paragraph 11C ”.

• (2) After paragraph 11B insert—

(11C) (1) This paragraph applies to a tractive unit that— (a) has a revenue weight exceeding 41,000 kilograms but not exceeding 44,000 kilograms, (b) has 3 or more axles and is used exclusively for the conveyance of semi-trailers with 3 or more axles, (c) is of a type that could lawfully be used on a public road immediately before 21st March 2000, and (d) complies with the requirements in force immediately before that date for use on a public road. (2) The annual rate of vehicle excise duty applicable to a vehicle to which this paragraph applies is— (a) in the case of a vehicle with respect to which the reduced pollution requirements are not satisfied, £1,280; (b) in the case of a vehicle with respect to which those requirements are satisfied, £280.

.

SCHEDULE 6

Part I — The levy

Climate change levy

1

• (1) A tax to be known as climate change levy (“the levy”) shall be charged in accordance with this Schedule.

• (2) The levy is under the care and management of the Commissioners of Customs and Excise.

Levy charged on taxable supplies

2

• (1) The levy is charged on taxable supplies.

• (2) Any supply of a taxable commodity is a taxable supply, subject to the provisions of Part II of this Schedule.

Meaning of “taxable commodity"

3

• (1) The following are taxable commodities for the purposes of this Schedule, subject to sub-paragraph (2) and to any regulations under sub-paragraph (3)—

• (a) electricity;

• (b) any gas in a gaseous state that is of a kind supplied by a gas utility;

• (c) any petroleum gas, or other gaseous hydrocarbon, in a liquid state;

• (d) coal and lignite;

• (e) coke, and semi-coke, of coal or lignite;

• (f) petroleum coke.

• (2) The following are not taxable commodities—

• (a) hydrocarbon oil or road fuel gas within the meaning of the Hydrocarbon Oil Duties Act 1979;

• (b) waste within the meaning of Part II of the Environmental Protection Act 1990 or the meaning given by Article 2(2) of the Waste and Contaminated Land (Northern Ireland) Order 1997.

• (3) The Treasury may by regulations provide that a commodity of a description specified in the regulations is, or is not, a taxable commodity for the purposes of this Schedule.

Part II — Taxable supplies

Introduction

4

• (1) A supply of a taxable commodity (or part of such a supply) is a taxable supply for the purposes of the levy if levy is chargeable on the supply under—

• paragraph 5 (supplies of electricity),

• paragraph 6 (supplies of gas), or

• paragraph 7 (other supplies in course or furtherance of business),

and the supply (or part) is not excluded under paragraphs 8 to 10 or exempt under paragraphs 11 to 22.

• (2) In this Schedule—

• (a) references to a supply of a taxable commodity include a supply that is deemed to be made under paragraph 23, and

• (b) references to a taxable supply include a supply that is deemed to be made under paragraph 24 , 24A, 24B, 24C, 42D or 43B,

but paragraphs 23 and 24 have effect subject to any exceptions provided for under paragraph 21.

Supplies of electricity

5

• (1) Levy is chargeable on a supply of electricity if—

• (a) the supply is made by an electricity utility, and

• (b) the person to whom the supply is made—

• (i) is not an electricity utility, or

• (ii) is the utility itself.

• (2) Levy is chargeable on a supply made from a combined heat and power station of electricity produced in the station if—

• (a) the station is a partly exempt combined heat and power station,

• (b) the supply is not one that is deemed to be made under paragraph 23(3) (self-supply by producer), and

• (c) the person to whom the supply is made is not an electricity utility.

• (2A) Levy is chargeable on a supply of electricity if—

• (a) the supply is made by an exempt unlicensed electricity supplier who is an auto-generator or who is of a description prescribed by regulations made by the Treasury,

• (b) the electricity was produced in a generating station owned by the supplier using commodities which were the subject of a deemed supply under paragraph 24A or which would have been the subject of such a supply had the reference in paragraph 24A(1)(a) to Great Britain been a reference to the United Kingdom instead,

• (c) the supply is not a deemed supply under paragraph 23(3), and

• (d) the person to whom the supply is made is not an electricity utility.

• (3) Levy is chargeable on a supply of electricity that is deemed to be made under paragraph 20(6)(a), 20B(6)(a), 23(3) , 24 or 43B.

• (4) Except as provided by sub-paragraphs (1) to (3), levy is not chargeable on a supply of electricity.

Supplies of gas

6

• (1) Levy is chargeable on a supply of any gas if—

• (a) the supply is made by a gas utility, and

• (b) the person to whom the supply is made—

• (i) is not a gas utility, or

• (ii) is the utility itself.

• (2) Levy is chargeable on a supply of gas that is deemed to be made under paragraph 23(3) (self-supply by producer) if the gas—

• (a) is held in a gaseous state immediately prior to being released for burning, and

• (b) is of a kind supplied by a gas utility.

• (2A) Levy is chargeable on a supply of gas that is deemed to be made under paragraph 24 , 24A, 24B, 24C, 42D or 43B.

• (3) Except as provided by sub-paragraph (1), (2) or (2A), levy is not chargeable on a supply of any gas that is supplied in a gaseous state.

Other supplies made in course or furtherance of business

7

• (1) This paragraph applies to a supply of a taxable commodity other than—

• (a) electricity, or

• (b) gas in a gaseous state.

• (2) Levy is chargeable on any such supply if the supply is made in the course or furtherance of a business.

Excluded supplies: supply for domestic or charity use

8

• (1) A supply is excluded from the levy if it is—

• (a) for domestic use (see paragraph 9), or

• (b) for charity use.

• (2) For the purposes of this paragraph, a supply is for charity use if the commodity supplied is for use by a charity otherwise than in the course or furtherance of a business.

• (3) If a supply is partly for domestic or charity use and partly not, the part of the supply that is for domestic or charity use is excluded from the levy.

• (4) Where a supply of a commodity is partly for domestic or charity use and partly not—

• (a) if at least 60 per cent. of the commodity is supplied for domestic or charity use, the whole supply is treated as a supply for domestic or charity use, and

• (b) in any other case, an apportionment shall be made to determine the extent to which the supply is for domestic or charity use.

Excluded supplies: meaning of “for domestic use"

9

• (1) For the purposes of paragraph 8 the following supplies are always for domestic use—

• (a) a supply of not more than one tonne of coal or coke held out for sale as domestic fuel;

• (b) a supply to a person at any premises of—

• (i) any gas in a gaseous state that is provided through pipes and is of a kind supplied by a gas utility, or

• (ii) petroleum gas in a gaseous state provided through pipes,

where the gas or petroleum gas (together with any other gas or petroleum gas provided through pipes to him at the premises by the same supplier) was not provided at a rate exceeding 4397 kilowatt hours a month;

• (c) a supply of petroleum gas in a liquid state where the petroleum gas is supplied in cylinders the net weight of each of which is less than 50 kilogrammes and either the number of cylinders supplied is 20 or fewer or the petroleum gas is not intended for sale by the recipient;

• (d) a supply of petroleum gas in a liquid state, otherwise than in cylinders, to a person at any premises at which he is not able to store more than two tonnes of such petroleum gas;

• (e) a metered supply of electricity to a person at any premises where the electricity (together with any other electricity provided to him at the premises by the same supplier) was not provided at a rate exceeding 1000 kilowatt hours a month;

• (f) an unmetered supply of electricity to a person where the electricity (together with any other unmetered electricity provided to him by the same supplier) was not provided at a rate exceeding 1000 kilowatt hours a month.

• (2) For the purposes of paragraph 8, supplies not within sub-paragraph (1) are for domestic use if and only if the commodity supplied is for use in—

• (a) a building, or part of a building, which consists of a dwelling or number of dwellings,

• (b) a building, or part of a building, used for a relevant residential purpose,

• (c) self-catering holiday accommodation (including any accommodation advertised or held out as such),

• (d) a caravan,

• (e) a houseboat (that is to say, a boat or other floating decked structure designed or adapted for use solely as a place of permanent habitation and not having means of, or capable of being readily adapted for, self-propulsion), or

• (f) an appliance that—

• (i) is not part of a combined heat and power station,

• (ii) is located otherwise than in premises of a description mentioned in any of paragraphs (a) to (e), and

• (iii) is used to heat air or water that, when heated, is supplied to premises of, or each of, such a description.

• (3) For the purposes of this paragraph use for a relevant residential purpose means use as—

• (a) a home or other institution providing residential accommodation for children,

• (b) a home or other institution providing residential accommodation with personal care for persons in need of personal care by reason of old age, disablement, past or present dependence on alcohol or drugs or past or present mental disorder,

• (c) a hospice,

• (d) residential accommodation for students or school pupils,

• (e) residential accommodation for members of any of the armed forces,

• (f) a monastery, nunnery or similar establishment, or

• (g) an institution which is the sole or main residence of at least 90 per cent. of its residents,

except use as a hospital, a prison or similar institution or an hotel or inn or similar establishment.

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) The power to make provision under section 29A(3) of the Value Added Tax Act 1994 varying Schedule 7A to that Act (charge at reduced rate) includes power to make provision for any appropriate corresponding variation of this paragraph.

Excluded supplies: supply before 1st April 2001

10

Any supply made before 1st April 2001 is excluded from the levy.

Exemption: supply not for burning in the UK

11

• (1) A supply of a taxable commodity to which this sub-paragraph applies is exempt from the levy if the person to whom the supply is made ...—

• (a) ... intends to use the commodity in making supplies of it to any other person, or

• (b) ... intends to cause the commodity to be exported from the United Kingdom and has no intention to cause it to be thereafter brought back into the United Kingdom.

• (2) Sub-paragraph (1) applies to supplies of a taxable commodity other than—

• (a) electricity, or

• (b) any gas in a gaseous state.

• (3) A supply of electricity, or of gas in a gaseous state, is exempt from the levy if the person to whom the supply is made ...—

• (a) ... intends to cause the commodity to be exported from the United Kingdom, and

• (b) has no intention to cause it to be thereafter brought back into the United Kingdom.

• (4) Regulations under paragraph 22 may, in particular, include provision as to the application of sub-paragraph (3) in cases where a person who is both an exporter and an importer of a commodity intends to be a net exporter of the commodity.

Exemption: supply used in transport

12

• (1) A supply of a taxable commodity is exempt from levy if the commodity is to be burned (or, in the case of electricity, consumed)—

• (a) in order to propel a train,

• (b) in order to propel a non-railway vehicle while it is being used for, or for purposes connected with, transporting passengers,

• (c) in a railway vehicle, or a non-railway vehicle, while it is being used for, or for purposes connected with, transporting passengers,

• (d) in a railway vehicle while it is being used for, or for purposes connected with, transporting goods, or

• (e) in a ship while it is engaged on a journey any part of which is beyond the seaward limit of the territorial sea.

Paragraphs (a) to (c) are subject to the exception in sub-paragraph (3).

• (2) In this paragraph—

• “railway vehicle” and “train” have the meaning given by section 83 of the Railways Act 1993;

• “non-railway vehicle” means—any vehicle other than a railway vehicle, orany ship,that is designed or adapted to carry not less than 12 passengers.

• (3) Sub-paragraph (1)(a) to (c) does not apply in relation to the transporting of passengers to, from or within—

• (a) a place of entertainment, recreation or amusement, or

• (b) a place of cultural, scientific, historical or similar interest,

that is a place to which rights of admission, or where rights to use facilities at it, are supplied by the person to whom the commodity is supplied or by a person connected with him within the meaning of section 1122 of the Corporation Tax Act 2010.

Exemption: supplies to producers of commodities other than electricity

13

A supply of a taxable commodity to a person is exempt from the levy if—

• (a) the supply is not a supply of electricity that is deemed to be made under paragraph 23(3), and

• (b) the commodity is to be used by that person—

• (i) in producing taxable commodities other than electricity,

• (ii) in producing hydrocarbon oil or road fuel gas,

• (iia) in producing biodiesel for chargeable use within the meaning of section 6AA of the Hydrocarbon Oil Duties Act 1979 (excise duty on biodiesel),

• (iib) in producing bioblend for delivery for home use from any place mentioned in section 6AB(1)(b) of that Act (excise duty on bioblend),

• (iic) in producing bioethanol for chargeable use within the meaning of section 6AD of that Act (excise duty on bioethanol),

• (iid) in producing bioethanol blend for delivery for home use from any place mentioned in section 6AE(1)(b) of that Act (excise duty on bioethanol blend),

• (iii) in producing, for chargeable use within the meaning of section 6A of the Hydrocarbon Oil Duties Act 1979 (fuel substitutes), liquids (within the meaning of that section) in respect of which a charge is capable of arising under that section, or

• (iv) in producing uranium for use in an electricity generating station.

Expressions which are used in this paragraph and the Hydrocarbon Oil Duties Act 1979 have the same meaning in this paragraph as they have in that Act.

Exemption: supplies (other than self-supplies) to electricity producers

14

• (1) A supply of a taxable commodity to a person is exempt from the levy if—(a) the commodity is to be used by that person in producing electricity in a generating station that is neither—

• (i) a fully exempt combined heat and power station, nor

• (ii) a partly exempt combined heat and power station,

and

• (b) the supply is not a supply of electricity that is deemed to be made under paragraph 23(3).

• (2) Sub-paragraph (1) does not exempt a supply where the person to whom the supply is made—

• (a) is an exempt unlicensed electricity supplier of a description prescribed by regulations made by the Treasury, ...

• (b) uses the commodity supplied in producing electricity in a small generating station, and

• (c) uses the electricity produced otherwise than in exemption-retaining ways.

• (3) Sub-paragraph (1) does not exempt a supply where the person to whom the supply is made—

• (a) is an auto-generator,

• (b) uses the commodity supplied in producing electricity in a small generating station, and

• (c) uses the electricity produced otherwise than in exemption-retaining ways.

• (3ZA) Sub-paragraph (1) does not exempt a supply where the person to whom the supply is made—

• (a) uses the commodity supplied in producing electricity in a stand-by generator, and

• (b) uses the electricity produced otherwise than in exemption-retaining ways.

• (3A) For the purposes of this paragraph, electricity is used in an “exemption-retaining” way if it is used—

• (a) in making supplies that are excluded under paragraphs 8 to 10 or exempt under any of paragraphs 11, 12 and 18, or

• (b) in any of the ways mentioned in sub-paragraphs (i) to (iv) of paragraph 13(b).

• (3B) Paragraph 24A makes provision under which carbon price support rate commodities intended to be used in a generating station may be the subject of a deemed taxable supply (and, accordingly, this paragraph needs to be read subject to that paragraph).

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15

• (1) A supply of a taxable commodity to a person is exempt from the levy if—

• (a) that person intends to cause the commodity to be used in—

• (i) a fully exempt combined heat and power station, or

• (ii) a partly exempt combined heat and power station,

in producing any outputs of the station, and

• (b) the supply is not a supply of electricity that is deemed to be made under paragraph 23(3).

For this purpose “outputs” has the meaning given by paragraph 148(9).

• (2) Where—

• (a) a supply of a taxable commodity to a person would (apart from this sub-paragraph) be exempted in full by sub-paragraph (1), and

• (b) at the time the supply is made, the efficiency percentage for the combined heat and power station in which the commodity is to be used ... is less than the threshold efficiency percentage for the station,

sub-paragraph (1) only exempts the relevant fraction of the supply.

• (3) For the purposes of sub-paragraph (2), the “relevant fraction” of a supply of a taxable commodity that is to be used in a combined heat and power station is the fraction—

• (a) whose numerator is the efficiency percentage for the station at the time the supply is made, and

• (b) whose denominator is the threshold efficiency percentage for the station at that time.

• (4) For the purposes of this paragraph—

• (a) the “threshold efficiency percentage" for a combined heat and power station is the percentage set as the threshold efficiency percentage for the station by regulations made by the Treasury;

• (b) the “efficiency percentage” for a combined heat and power station shall be determined in accordance with regulations under paragraph 149.

• (4A) Paragraph 24B makes provision under which carbon price support rate commodities intended to be used in a combined heat and power station may be the subject of a deemed taxable supply (and, accordingly, this paragraph needs to be read subject to that paragraph).

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Exemption: supplies (other than self-supplies) of electricity from partly exempt combined heat and power stations

16

• (1) This paragraph applies to a supply that—

• (a) is a supply made from a partly exempt combined heat and power station of electricity produced in the station, and

• (b) is not a supply that is deemed to be made under paragraph 23(3).

• (2) The supply is exempt from the levy if the quantity of electricity supplied by the supply is not such as causes the exceeding of any specified limit that, by virtue of regulations made by the Treasury, applies in relation to the station for any specified period.

• (3) In this paragraph “specified” means prescribed by, or determined in accordance with, regulations made by the Treasury.

Exemption: self-supplies by electricity producers

17

• (1) This paragraph applies to a supply of electricity that is deemed to be made under paragraph 23(3) by a person (“the producer”) to himself.

• (1A) The supply is exempt from levy if it is a supply of electricity produced in—

• (a) a fully exempt combined heat and power station,

• (b) a partly exempt combined heat and power station,

• (c) a stand-by generator, or

• (d) a small generating station.

• (1B) Sub-paragraph (1A)(d) applies only if the producer is—

• (a) an auto-generator, or

• (b) an exempt unlicensed electricity supplier of a description prescribed by regulations made by the Treasury.

• (2) This paragraph does not exempt the supply if—

• (a) it is a supply from a partly-exempt combined heat and power station of electricity produced in the station, and

• (b) the quantity of electricity supplied by the supply is such as causes the exceeding of any such limit as is mentioned in paragraph 16(2) that applies in relation to the station.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Exemption: supply not used as fuel

18

• (1) A supply of a taxable commodity is exempt from the levy if the person to whom the supply is made intends to cause the commodity to be used otherwise than as fuel.

• (2) The Treasury may by regulations specify, in relation to any commodity, uses of that commodity that, for the purposes of sub-paragraph (1), are to be taken as being, or as not being, uses of that commodity as fuel.

• (3) The uses of a commodity that may be specified under sub-paragraph (2) as being uses of that commodity as, or otherwise than as, fuel include uses (“mixed uses”) of the commodity that involve it being used partly as fuel and partly not; but the Treasury must have regard to the object of securing that a mixed use is not specified as being a use of the commodity otherwise than as fuel if it involves the use of the commodity otherwise than as fuel in a way that is merely incidental to its use as fuel.

Exemption: electricity from renewable sources

19

• (1) A supply of electricity is exempt from the levy if—

• (a) the supply is not one that is deemed to be made under paragraph 23(3),

• (b) the supply is made under a contract that contains a renewable source declaration given by the supplier,

• (c) prescribed conditions are fulfilled, ...

• (d) the supplier, and each other person (if any) who is a generator of any renewable source electricity allocated by the supplier to supplies under the contract, has in a written notice given to the Commissioners agreed that he will fulfil those conditions so far as they may apply to him , and

• (e) the electricity is actually supplied before 1 April 2018.

• (2) In this paragraph “renewable source declaration” means a declaration that, in each averaging period, the amount of electricity supplied by exempt renewable supplies made by the supplier in the period will not exceed the difference between—

• (a) the total amount of renewable source electricity that during that period is either acquired or generated by the supplier, and

• (b) so much of that total amount as is allocated by the supplier otherwise than to exempt renewable supplies made by him in the period.

In this sub-paragraph “averaging period” has the same meaning as in paragraph 20 and “exempt renewable supplies” means supplies made on the basis that they are exempt under this paragraph.

• (3) For the purposes of this paragraph and paragraph 20, electricity is “renewable source electricity” if—

• (za) it is generated before 1 August 2015,

• (a) it is generated in a prescribed manner, and

• (b) prescribed conditions are fulfilled.

A manner of generating electricity may be prescribed by reference to the means by which the electricity is generated or the materials from which it is generated (or both).

• (4) In prescribing a manner of generating electricity under sub-paragraph (3), the Commissioners must have regard to the object of securing that exemption under this paragraph is only available for supplies of electricity that has a renewable source.

• (4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) The conditions that may be prescribed under sub-paragraph (1)(c) include, in particular, conditions in connection with—

• (a) the giving of effect to renewable source declarations;

• (b) the supply of information;