Finance Act 2012

(10A) (1) For the purposes of general betting duty or pool betting duty, a “qualifying foreign tax” is a foreign tax specified by the Commissioners in relation to that duty (“the relevant duty”). (2) “Specified” means specified in a notice published by the Commissioners, as revised or replaced from time to time. (3) The Commissioners must specify a foreign tax under this section if they are satisfied that— (a) it is a gambling tax, (b) the activities on which it is charged include betting, (c) the bets in respect of which it is charged include bets in respect of which the relevant duty is also charged, and (d) the charge in respect of such bets is based on betting by persons in or deemed to be in the country or territory where the tax is imposed. (4) The following factors indicate that a tax is a gambling tax— (a) that it is charged on activities involving betting or gaming (rather than activities generally), and (b) that it goes towards meeting general public expenditure (rather than being ring-fenced for a particular purpose). (5) A notice specifying a foreign tax may provide that the tax is to be treated as having been specified with effect from a date that is earlier than the date of the notice.

5

After section 26I insert—

(26IA) (1) This section applies if— (a) P is liable to pay remote gaming duty on the provision of facilities for remote gaming, and (b) P is also liable to pay a qualifying foreign tax in respect of remote gaming using those facilities. (2) The remote gaming using those facilities in respect of which the qualifying foreign tax is charged is referred to as “eligible gaming”. (3) Credit may be allowed for all or part of the qualifying foreign tax paid by P. (4) Whether any credit is allowed is determined in accordance with Schedule 4B. (5) If credit is allowed for an accounting period, P is entitled to claim a repayment of so much of the duty actually paid as is equal to the amount of credit allowed. (6) Total repayments to P for that period (taking into account all qualifying foreign taxes) must not, in aggregate, exceed the duty actually paid. (7) “The duty actually paid” means the remote gaming duty paid by P for that accounting period. (8) Remote gaming does not count as “eligible gaming” if one of the participants in the game in question is P or someone acting on P's behalf. (26IB) (1) For the purposes of remote gaming duty, a “qualifying foreign tax” is a foreign tax specified by the Commissioners in relation to remote gaming duty. (2) “Specified” means specified in a notice published by the Commissioners, as revised or replaced from time to time. (3) The Commissioners must specify a foreign tax under this section if they are satisfied that— (a) it is a gambling tax, (b) the activities on which it is charged include remote gaming, (c) the remote gaming on which it is charged includes remote gaming using facilities in respect of which remote gaming duty is also charged, and (d) the charge is based on remote gaming by persons in or deemed to be in the country or territory where the tax is imposed. (4) The following factors indicate that a tax is a gambling tax— (a) that it is charged on activities involving betting or gaming (rather than activities generally), and (b) that it goes towards meeting general public expenditure (rather than being ring-fenced for a particular purpose). (5) A notice specifying a foreign tax may provide that the tax is to be treated as having been specified with effect from a date that is earlier than the date of the notice. (26IC) (1) The Commissioners may make regulations about— (a) claims for repayment under section 26IA, and (b) the making of repayments under that section. (2) Regulations under this section may in particular include provision about— (a) the time within which claims may be made, (b) the form, content and delivery of claims, (c) the evidence required to satisfy the Commissioners of the validity of claims, and (d) the investigation and processing of claims.

6

In section 33 (interpretation)—

• (a) in subsection (1), after the definition of “the Commissioners” insert—

“foreign tax” means a tax, including any sort of duty or levy, imposed in a country or territory outside the United Kingdom (see also subsection (1B));

, and

• (b) after subsection (1A) insert—

(1B) A reference in this Act to a foreign tax does not include any penalty, interest, surcharge or other such cost arising in connection with the tax (whether or not recoverable as if it were that tax).

7

Before Schedule 1 insert—

SCHEDULE A1 (1) This Schedule sets out the rules for determining whether credit is allowed under section 5E or 8ZA for qualifying foreign tax paid by P. (2) (1) This Schedule is to be read as follows. (2) “The applicable class”— (a) in the case of section 5E, has the meaning given in that section, and (b) in the case of section 8ZA, means dutiable pool bets. (3) A “reconciliation period” is— (a) if P has monthly accounting periods, a period consisting of 12 consecutive accounting periods, (b) if P has quarterly accounting periods, a period consisting of 4 consecutive accounting periods, and (c) if P has any other length of accounting period, a period consisting of such number of consecutive accounting periods as would produce a period as near as possible to 365 days. (4) In relation to an accounting period, a reference to “the reconciliation period” is to the reconciliation period in which that accounting period falls. (3) (1) To determine whether credit is allowed for an accounting period— (a) calculate the notional UK liability and the notional foreign liability for the accounting period, and (b) compare the two figures. (2) No credit is allowed if either figure is nil or both figures are nil. (3) Subject to that, credit is allowed of an amount equal to the smaller of the two figures (or, if they are the same, of an amount equal to that figure). (4) The notional UK liability for an accounting period is calculated as follows— - Step 1 If the applicable class is a class to which a provision of sections 2 to 4 applies, calculate P's net stake receipts for the period in accordance with section 5 but by reference to eligible bets (rather than bets of the applicable class).If the applicable class is the class to which section 5AB applies, calculate the commission charges in accordance with that section relating to eligible bets determined in the period (rather than bets to which that section applies).If the applicable class is dutiable pool bets, calculate P's net pool betting receipts for the period in accordance with section 7A but by reference to eligible bets (rather than dutiable pool bets).In calculating P's net stake receipts or net pool betting receipts for the purposes of this Step, do not carry forward to the period any losses in respect of eligible bets that arose in an accounting period before the start of the reconciliation period. - Step 2 If the amount calculated under Step 1 is nil or a negative amount, the notional UK liability for the period is nil.Otherwise, apply the appropriate rate to the amount calculated under Step 1. The result is the notional UK liability for the period.“The appropriate rate” is the percentage specified in whichever of section 2(3), 3(3)(a), 3(3)(b), 4(3), 5AB(4) or 7(2) applies to the applicable class, as in force for the accounting period in question. (5) The notional foreign liability for an accounting period is calculated as follows— - Step 1 Calculate the amount of qualifying foreign tax that would be payable by P for the accounting period if the tax were charged solely in respect of eligible bets and accounted for by reference to periods corresponding to P's accounting periods.Any apportionment needed for this calculation is to be done on a just and reasonable basis.If the law under which the qualifying foreign tax is imposed provides for losses to be carried forward, do not carry forward to the period any losses (in respect of eligible bets) that arose before the start of the reconciliation period. - Step 2 If the amount calculated under Step 1 is nil, the notional foreign liability for the period is nil.Otherwise, calculate the sterling equivalent of the amount calculated under Step 1. The result is the notional foreign liability for the period.The sterling equivalent is to be calculated using the London closing exchange rate for the last day of the accounting period. (6) (1) This paragraph applies if in respect of the applicable class of bets— (a) P receives a repayment under section 5E or 8ZA for one or more accounting periods in a reconciliation period, and (b) the amount calculated under Step 1 in paragraph 4 for the final accounting period in that reconciliation period is a negative amount. (2) P is liable to repay all or part of the repayment or repayments received. (3) The amount that P is liable to repay is the smallest of— (a) the loss multiplied by the rate at which the qualifying foreign tax is charged in respect of eligible bets, (b) the loss multiplied by the appropriate rate (as defined in paragraph 4) for the applicable class of bets, and (c) the repayment (or the sum of the repayments) made to P for the reconciliation period. (4) “The loss” means the negative amount mentioned in sub-paragraph (1)(b) but expressed as a positive number. (5) If there is more than one rate at which the qualifying foreign tax is charged in respect of eligible bets, each rate is to be applied to an appropriate portion of the loss in order to arrive at the amount under sub-paragraph (3)(a). (6) If all or part of the qualifying foreign tax is calculated other than on a net receipts basis, sub-paragraph (3) has effect as if paragraph (a) were omitted. (7) Any amount due from P under this paragraph is to be treated as if it were an amount of unpaid general betting duty or, as the case may be, pool betting duty. (7) The Commissioners are not required to make a repayment under section 5E or 8ZA if P is in breach of any obligation to deliver a return with respect to— (a) general betting duty, (b) pool betting duty, (c) bingo duty, (d) remote gaming duty, (e) gaming duty, or (f) lottery duty. (8) (1) Sub-paragraphs (2) to (4) apply if any of the following events take place— (a) the way in which a qualifying foreign tax is charged or calculated is changed retrospectively, (b) a tax authority waives or refunds all or part of an amount of qualifying foreign tax due from P, or (c) as a result of being liable to pay an amount of qualifying foreign tax, P or a connected person is entitled to any kind of tax deduction or relief calculated by reference to the amount of qualifying foreign tax. (2) P must notify the Commissioners of the event on becoming aware of it. (3) If the event is a retrospective change in the way in which the qualifying foreign tax is charged or calculated, the amount for which credit is allowed under section 5E or 8ZA is to be recalculated in accordance with this Schedule. (4) In any other case, the amount for which credit is allowed under section 5E or 8ZA is to be reduced by a just and reasonable sum to reflect the amount of tax waived or refunded or the deduction or relief given. (5) If it transpires (on account of this paragraph or otherwise) that a repayment or part of a repayment under section 5E or 8ZA should not have been made, P is liable for the amount that should not have been repaid, as if it were unpaid general betting duty or, as the case may be, pool betting duty. (6) Section 1122 of the Corporation Tax Act 2010 (connected persons) applies for the purposes of sub-paragraph (1)(c).

8

• (1) Schedule 1 (betting duties) is amended as follows.

• (2) In paragraph 2, after sub-paragraph (4) insert—

(5) Regulations under this paragraph may also in particular include provision about claims for repayment under section 5E and about the making of any such repayment, including provision about— (a) the time within which claims may be made, (b) the form, content and delivery of claims, (c) the evidence required to satisfy the Commissioners of the validity of claims, and (d) the investigation and processing of claims.

• (3) In paragraph 2A, after sub-paragraph (3) insert—

(4) Regulations under sub-paragraph (2) may also include provision about claims for repayment under section 8ZA and about the making of any such repayment, including provision about anything mentioned in paragraph 2(5)(a) to (d).

9

After Schedule 4A insert—

SCHEDULE 4B (1) This Schedule sets out the rules for determining whether credit is allowed under section 26IA for qualifying foreign tax paid by P. (2) (1) For the purposes of this Schedule, a “reconciliation period” is— (a) if P has quarterly accounting periods, a period consisting of 4 consecutive accounting periods, and (b) if P has any other length of accounting period, a period consisting of such number of consecutive accounting periods as would produce a period as near as possible to 365 days. (2) In relation to an accounting period, a reference to “the reconciliation period” is to the reconciliation period in which that accounting period falls. (3) (1) To determine whether credit is allowed for an accounting period— (a) calculate the notional UK liability and the notional foreign liability for the accounting period, and (b) compare the two figures. (2) No credit is allowed if either figure is nil or both figures are nil. (3) Subject to that, credit is allowed of an amount equal to the smaller of the two figures (or, if they are the same, of an amount equal to that figure). (4) The notional UK liability for an accounting period is calculated as follows— - Step 1 Calculate P's remote gaming profits for the period in accordance with section 26C(2) but by reference to the use of the facilities provided by P for eligible gaming (rather than remote gaming generally).In calculating P's remote gaming profits for the purposes of this Step, do not carry forward to the period any losses (in respect of the use of the facilities for eligible gaming) that arose in an accounting period before the start of the reconciliation period. - Step 2 If the amount calculated under Step 1 is nil or a negative amount, the notional UK liability for the period is nil.Otherwise, apply the appropriate rate to the amount calculated under Step 1. The result is the notional UK liability for the period.“The appropriate rate” is the percentage specified in section 26C(1) as in force for the accounting period in question. (5) The notional foreign liability for an accounting period is calculated as follows— - Step 1 Calculate the amount of qualifying foreign tax that would be payable by P for the accounting period if the tax were charged in respect of eligible gaming and were accounted for by reference to periods corresponding to P's accounting periods.Any apportionment needed for this calculation is to be done on a just and reasonable basis.If the law under which the qualifying foreign tax is imposed provides for losses to be carried forward, do not carry forward to the period any losses (in respect of eligible gaming) that arose before the start of the reconciliation period. - Step 2 If the amount calculated under Step 1 is nil, the notional foreign liability for the period is nil.Otherwise, calculate the sterling equivalent of the amount calculated under Step 1. The result is the notional foreign liability for the period.The sterling equivalent is to be calculated using the London closing exchange rate for the last day of the accounting period. (6) (1) This paragraph applies if in respect of eligible gaming— (a) P receives a repayment under section 26IA for one or more accounting periods in a reconciliation period, and (b) the amount calculated under Step 1 in paragraph 4 for the final accounting period in that reconciliation period is a negative amount. (2) P is liable to repay all or part of the repayment or repayments received. (3) The amount that P is liable to repay is the smallest of— (a) the loss multiplied by the rate at which the qualifying foreign tax is charged in respect of eligible gaming, (b) the loss multiplied by the appropriate rate (as defined in paragraph 4), and (c) the repayment (or the sum of the repayments) made to P for the reconciliation period. (4) “The loss” means the negative amount mentioned in sub-paragraph (1)(b) but expressed as a positive number. (5) If there is more than one rate at which the qualifying foreign tax is charged in respect of eligible gaming, each rate is to be applied to an appropriate portion of the loss in order to arrive at the amount under sub-paragraph (3)(a). (6) If all or part of the qualifying foreign tax is calculated other than on a net receipts basis, sub-paragraph (3) has effect as if paragraph (a) were omitted. (7) Any amount due from P under this paragraph is to be treated as if it were an amount of unpaid remote gaming duty. (7) The Commissioners are not required to make a repayment under section 26IA if P is in breach of any obligation to deliver a return with respect to— (a) general betting duty, (b) pool betting duty, (c) bingo duty, (d) remote gaming duty, (e) gaming duty, or (f) lottery duty. (8) (1) Sub-paragraphs (2) to (4) apply if any of the following events take place— (a) the way in which a qualifying foreign tax is charged or calculated is changed retrospectively, (b) a tax authority waives or refunds all or part of an amount of qualifying foreign tax due from P, or (c) as a result of being liable to pay an amount of qualifying foreign tax, P or a connected person is entitled to any kind of tax deduction or relief calculated by reference to the amount of qualifying foreign tax. (2) P must notify the Commissioners of the event on becoming aware of it. (3) If the event is a retrospective change in the way in which the qualifying foreign tax is charged or calculated, the amount for which credit is allowed under section 26IA is to be recalculated in accordance with this Schedule. (4) In any other case, the amount for which credit is allowed under that section is to be reduced by a just and reasonable sum to reflect the amount of tax waived or refunded or the deduction or relief given. (5) If it transpires (on account of this paragraph or otherwise) that a repayment or part of a repayment under section 26IA should not have been made, P is liable for the amount that should not have been repaid, as if it were unpaid remote gaming duty. (6) Section 1122 of the Corporation Tax Act 2010 (connected persons) applies for the purposes of sub-paragraph (1)(c).

Consequential amendments

10

In section 13A(2) of FA 1994 (meaning of “relevant decision”), after paragraph (g) insert—

(ga) any decision by HMRC as to whether or not any person is entitled to any repayment under section 5E, 8ZA or 26IA of the Betting and Gaming Duties Act 1981 (double taxation relief), or the amount of the repayment to which any person is so entitled;

.

11

• (1) The Table in paragraph 1 of Schedule 41 to FA 2008 (penalties: failure to notify and certain VAT and excise wrongdoing) is amended as follows.

• (2) In the second column of the entry for general betting duty, for “paragraph 4(1) to (3) of Schedule 1 to BGDA 1981” substitute “ paragraph 8(2) of Schedule A1 to BGDA 1981 (obligation to notify reduction etc in qualifying foreign tax) or paragraph 4(1) to (3) of Schedule 1 to that Act ”.

• (3) In the second column of the entry for pool betting duty, for “paragraphs 4(2) and 5(1) of Schedule 1 to BGDA 1981” substitute “ paragraph 8(2) of Schedule A1 to BGDA 1981 (obligation to notify reduction etc in qualifying foreign tax) or paragraphs 4(2) and 5(1) of Schedule 1 to that Act ”.

• (4) In the second column of the entry for remote gaming duty, for “to register under regulations under section 26J of BGDA 1981” substitute “ to notify under paragraph 8(2) of Schedule 4B to BGDA 1981 (reduction etc in qualifying foreign tax) and obligation to register under regulations under section 26J of that Act ”.

Commencement

12

The amendments made by this Schedule have effect in relation to accounting periods ending on or after 1 April 2012 (and, accordingly, the first reconciliation period begins with the first accounting period in relation to which the amendments have effect).

SCHEDULE 26

PART 1 — Zero-rated supplies

Introductory

1

Part 2 of Schedule 8 of VATA 1994 (zero-rating) is amended as follows.

Food

2

• (1) Group 1 (food) is amended as follows.

• (2) After excepted item 4 insert—

(4A) Sports drinks that are advertised or marketed as products designed to enhance physical performance, accelerate recovery after exercise or build bulk, and other similar drinks, including (in either case) syrups, concentrates, essences, powders, crystals or other products for the preparation of such drinks.

• (3) In Note (3), omit the words from “and for the purposes of paragraph (b) above” to the end.

• (4) After that Note insert—

(3A) For the purposes of Note (3), in the case of any supplier, the premises on which food is supplied include any area set aside for the consumption of food by that supplier's customers, whether or not the area may also be used by the customers of other suppliers. (3B) “Hot food” means food which (or any part of which) is hot at the time it is provided to the customer and— (a) has been heated for the purposes of enabling it to be consumed hot, (b) has been heated to order, (c) has been kept hot after being heated, (d) is provided to a customer in packaging that retains heat (whether or not the packaging was primarily designed for that purpose) or in any other packaging that is specifically designed for hot food, or (e) is advertised or marketed in a way that indicates that it is supplied hot. (3C) For the purposes of Note (3B)— (a) something is “hot” if it is at a temperature above the ambient air temperature, and (b) something is “kept hot” after being heated if the supplier stores it in an environment which provides, applies or retains heat, or takes other steps to ensure it remains hot or to slow down the natural cooling process. (3D) In Notes (3B) and (3C), references to food being heated include references to it being cooked or reheated.

Protected buildings

3

• (1) Group 6 (protected buildings) is amended as follows.

• (2) Omit items 2 and 3 (approved alterations and building materials).

• (3) In Note (3), for “(12) to (14) and (22) to (24)” substitute “ and (12) to (14) ”.

• (4) For Note (4) substitute—

(4) For the purposes of item 1, a protected building is not to be regarded as substantially reconstructed unless, when the reconstruction is completed, the reconstructed building incorporates no more of the original building (that is to say, the building as it was before the reconstruction began) than the external walls, together with other external features of architectural or historic interest.

• (5) In Note (5), in paragraphs (a), (b) and (c) omit “or other supply”.

• (6) Omit Notes (6) to (11).

Caravans

4

• (1) Group 9 (caravans and houseboats) is amended as follows.

• (2) For item 1 substitute—

(1) Caravans which exceed the limits of size of a trailer for the time being permitted to be towed on roads by a motor vehicle having a maximum gross weight of 3,500 kilogrammes and which— (a) were manufactured to standard BS 3632:2005 approved by the British Standards Institution, or (b) are second hand, were manufactured to a previous version of standard BS 3632 approved by that Institution and were occupied before 6 April 2013.

• (3) In item 3 for “5(3)” substitute “ 5(4) ”.

• (4) In the Note for “item 3” substitute “ item 4 ”.

PART 2 — Exempt supplies

Land: self storage and facilities to supply hairdressing services

5

• (1) In Part 2 of Schedule 9 to VATA 1994 (exemptions), Group 1 (land) is amended as follows.

• (2) In item 1, after paragraph (k) insert—

(ka) the grant of facilities for the self storage of goods;

.

• (3) In that item, omit “and” at the end of paragraph (m) and after that paragraph insert—

(ma) the grant of facilities to a person who uses the facilities wholly or mainly to supply hairdressing services; and

.

• (4) In that item, in paragraph (n), for “(m)” substitute “ (ma) ”.

• (5) After Note (15) insert—

(15A) In paragraph (ka)— - “facilities for the self storage of goods” means the use of a relevant structure for the storage of goods by the person (or persons) to whom the grant of facilities is made, and - “goods” does not include live animals. (15B) For the purposes of Note (15A), use by a person with the permission of the person (or any of the persons) to whom the grant of facilities is made counts as use by the person (or persons) to whom that grant is made. (15C) A grant of facilities for the self storage of goods does not fall within paragraph (ka) if— (a) the person making the grant (“P”)— (i) is doing so in circumstances where the relevant structure used is, or forms part of, a relevant capital item, and (ii) is connected with any person who uses that relevant structure for the self storage of goods, (b) the grant is made to a charity which uses the relevant structure solely otherwise than in the course of a business, or (c) in a case where the relevant structure is part of a building, its use for the storage of goods by the person (or persons) to whom the grant is made is ancillary to other use of the building by that person (or those persons). (15D) In Notes (15A) and (15C) “relevant structure” means the whole or part of— (a) a container or other structure that is fully enclosed, or (b) a unit or building. (15E) In Note (15C)(a)(i) “relevant capital item” means a capital item which— (a) is subject to adjustments of input tax deduction by P under regulations made under section 26(3), and (b) has not yet reached the end of its prescribed period of adjustment.

• (6) After Note (16) insert—

(17) Paragraph (ma) does not apply to a grant of facilities which provides for the exclusive use, by the person to whom the grant is made, of a whole building, a whole floor, a separate room or a clearly defined area, unless the person making the grant or a person connected with that person provides or makes available (directly or indirectly) services related to hairdressing for use by the person to whom the grant is made. (18) For the purposes of Note (17)— (a) “services related to hairdressing” means the services of a hairdresser's assistant or cashier, the booking of appointments, the laundering of towels, the cleaning of the facilities subject to the grant, the making of refreshments and other similar services typically used in connection with hairdressing, but does not include the provision of utilities or the cleaning of shared areas in a building, and (b) it does not matter if the services related to hairdressing are shared with other persons. (19) For the purposes of Notes (15C) and (17) any question whether a person is connected with any other person is to be determined in accordance with section 1122 of the Corporation Tax Act 2010 (connected person).

PART 3 — Supplies chargeable at reduced rate

6

• (1) Schedule 7A to VATA 1994 (charge at reduced rate) is amended as follows.

• (2) In Part 1 (index to reduced-rate supplies of goods and services), at the appropriate place insert—

Caravans	Group 12

.

• (3) In Part 2 (the groups), at the end insert—

(1) Supplies of caravans which exceed the limits of size of a trailer for the time being permitted to be towed on roads by a motor vehicle having a maximum gross weight of 3,500 kilogrammes. (2) The supply of such services as are described in paragraph 1(1) or 5(4) of Schedule 4 in respect of a caravan within item 1. NOTE: This Group does not include— (a) removable contents other than goods of a kind mentioned in item 4 of Group 5 of Schedule 8, or (b) the supply of accommodation in a caravan.

PART 4 — Commencement and transitional provision

7

• (1) Subject to sub-paragraphs (2) and (3), the amendments made by this Schedule come into force on 1 October 2012.

• (2) Paragraphs 4 and 6 come into force on 6 April 2013.

• (3) Paragraph 3(2) to (6) comes into force, in relation to relevant supplies, on 1 October 2015.

• (4) A supply is “relevant” if it is—

• (a) a supply of any services, other than excluded services, which is made—

• (i) in the course of an approved alteration of a protected building, and

• (ii) pursuant to a written contract entered into, or a relevant consent applied for, before 21 March 2012, or

• (b) a supply of building materials which is made—

• (i) to a person to whom the supplier is supplying services within paragraph (a) which include the incorporation of the materials into the building (or its site) in question, and

• (ii) pursuant to a written contract entered into, or a relevant consent applied for, before 21 March 2012.

• (5) In relation to supplies made on or after 1 October 2012 but before 1 October 2015, Group 6 has effect as if, for the purposes of item 1 of that Group, a protected building were also regarded as substantially reconstructed if sub-paragraph (6) or (7) applies.

• (6) This sub-paragraph applies if at least three-fifths of the works carried out to effect the reconstruction (measured by reference to cost) are of such a nature that the supply of services (other than excluded services), materials and other items to carry out the works would, if supplied by a taxable person, be relevant supplies.

• (7) This sub-paragraph applies if—

• (a) at least 10% (measured by reference to cost) of the reconstruction of the protected building was completed before 21 March 2012, and

• (b) at least three-fifths of the works carried out to effect the reconstruction (measured by reference to cost) are of such a nature that the supply of services (other than excluded services), materials and other items to carry out the works would, if supplied by a taxable person, be relevant supplies but for the requirement for a written contract to have been entered into or relevant consent to have been applied for before that date.

• (8) For the purposes of sub-paragraph (4), works carried out that are not within the scope of the written contract entered into, or the relevant consent applied for, as it stood immediately before 21 March 2012, are not a supply made pursuant to that contract or relevant consent.

• (9) In this paragraph—

• “excluded services” means the services of an architect, surveyor or other person acting as consultant or in a supervisory capacity;

• “Group 6” means Group 6 of Part 2 of Schedule 8 to VATA 1994 (protected buildings);

• “relevant consent” means—in the case of an ecclesiastical building to which section 60 of the Planning (Listed Buildings and Conservation Areas) Act 1990 applies, consent for the approved alterations by a competent body with the authority to approve alterations to such buildings, orin any other case, consent under any provision of—Part 1 of the Planning (Listed Buildings and Conservation Areas) Act 1990,Part 1 of the Planning (Listed Buildings and Conservation Areas) (Scotland) Act 1997,Part 5 of the Planning (Northern Ireland) Order 1991,Part 1 of the Ancient Monuments and Archaeological Areas Act 1979, orPart 2 of the Historic Monuments and Archaeological Objects (Northern Ireland) Order 1995.

• (10) The Notes of Group 6 apply in relation to this paragraph as they apply in relation to that Group, except that in applying Notes (9), (10) and (11), references to item 2 are to be read as references to sub-paragraph (4) of this paragraph.

SCHEDULE 27

PART 1 — Anti-forestalling charge to VAT

Introductory

1

In this Schedule—

• “date of the VAT change” means 1 October 2012;

• “pre-change supply” means a supply of a description specified in paragraph 3 which—is treated as taking place before the date of the VAT change, andif it had been treated as taking place on that date, would have been charged to VAT at the standard rate as a result of the amendments made by Schedule 26.

The charge

2

• (1) There is an anti-forestalling charge to value added tax on any pre-change supply which—

• (a) is treated as taking place on or after 21 March 2012, and

• (b) is a supply linked to the post-change period (see paragraph 4).

• (2) “Chargeable pre-change supply” means a supply to which sub-paragraph (1) applies.

• (3) An anti-forestalling charge to value added tax under this Schedule is to be treated for all purposes as if it were value added tax charged in accordance with VATA 1994.

The supplies

3

• (1) The descriptions of supplies are—

• (a) the supply, in the course of an approved alteration of a protected building, of any services, other than the services of an architect, surveyor or any person acting as consultant or in a supervisory capacity,

• (b) the supply of building materials to a person to whom the supplier is supplying services within paragraph (a) which include the incorporation of the materials into the building (or its site),

• (c) the grant of facilities for the self storage of goods, or

• (d) the grant of a right to receive a supply within paragraph (c).

• (2) The Notes to Group 6 in Schedule 8 to VATA 1994 have effect for the purposes of sub-paragraph (1)(a) and (b) as they had effect for the purposes of items 1 to 3 of that Group on 21 March 2012.

• (3) For the purposes of this Schedule a right to receive a supply includes—

• (a) any option to receive that supply, and

• (b) any interest deriving from such an option.

Supplies linked to the post-change period

4

• (1) A supply of services within paragraph 3(1)(a) or (c) is linked to the post-change period if, and to the extent that, the services are carried out or provided on or after the date of the VAT change.

• (2) A supply of goods within paragraph 3(1)(b) is linked to the post-change period if, and to the extent that, the goods are incorporated into the building concerned (or its site) on or after that date.

• (3) A supply within paragraph 3(1)(d) is linked to the post-change period if, and to the extent that, the services to which the grant relates are carried out or provided on or after that date.

Power to modify this Schedule

5

• (1) The Treasury may by order modify this Schedule for the purposes of preventing an anti-forestalling charge from arising, in the circumstances specified in the order, in relation to any description of supplies specified in the order.

• (2) An order under this paragraph may contain provision having retrospective effect.

• (3) An order under this paragraph is to be made by statutory instrument.

• (4) A statutory instrument containing an order under this paragraph is subject to annulment in pursuance of a resolution of the House of Commons.

PART 2 — Liability and amount

Liability

6

• (1) An anti-forestalling charge under this Schedule on a chargeable pre-change supply—

• (a) is a liability of the supplier (subject to sub-paragraph (2)), and

• (b) becomes due on the date of the VAT change (rather than at the time of supply).

• (2) If, on the date on which the anti-forestalling charge becomes due, the person who would be liable to pay the charge under sub-paragraph (1)—

• (a) is not a taxable person, but

• (b) is treated as a member of a group under sections 43A to 43D of VATA 1994,

the anti-forestalling charge is a liability of the representative member of the group.

Amount

7

• (1) The amount of the anti-forestalling charge on a chargeable pre-change supply is the amount of VAT that would be chargeable on the supply if it were subject to VAT at 20%.

This is subject to any reduction under sub-paragraph (2).

• (2) If the chargeable pre-change supply is not wholly linked to the post-change period, the anti-forestalling charge is the relevant proportion of that amount.

• (3) The relevant proportion is—

$$P W$where—P is so much of the consideration for the chargeable supply as is attributable, on a just and reasonable basis, to that part of the supply (or, in the case of a grant of a right, that part of the supply to which the right relates) which is linked to the post-change period;W is the whole of the consideration for the chargeable pre-change supply.$

PART 3 — Administration and interpretation

Person ceasing to be taxable person before anti-forestalling charge due

8

• (1) This paragraph applies if, on the date on which an anti-forestalling charge under this Schedule becomes due (“the due date”), the person who is liable to pay the charge under paragraph 6 is not a taxable person.

• (2) The anti-forestalling charge must be accounted for by that person in accordance with VATA 1994 (and regulations made under that Act) as if it were VAT due in the last period for which the person was required to make a return by or under VATA 1994.

• (3) If an amount assessed as due by way of an anti-forestalling charge under this Schedule would (in the absence of this sub-paragraph) carry interest from a date earlier than the due date, it is to be treated as only carrying interest from the due date.

Adjustment of contracts following the VAT change

9

• (1) This paragraph applies where—

• (a) a contract for the supply of goods or services is made before the date of the VAT change, and

• (b) there is an anti-forestalling charge under this Schedule on the supply.

• (2) The consideration for the supply is to be increased by an amount equal to the anti-forestalling charge, unless the contract provides otherwise.

Invoices

10

Regulations under paragraph 2A of Schedule 11 to VATA 1994 (VAT invoices) may make provision about the provision, replacement or correction of invoices in connection with an anti-forestalling charge under this Schedule.

Interpretation: general

11

• (1) Expressions used in this Schedule and in VATA 1994 have the same meaning in this Schedule as in that Act.

• (2) In this Schedule “treated as taking place” means treated as taking place for the purposes of the charge to VAT.

SCHEDULE 28

New Schedule 1A

1

In VATA 1994, after Schedule 1 insert—

SCHEDULE 1A (1) (1) A person becomes liable to be registered under this Schedule at any time if conditions A to D are met. (2) Condition A is that— (a) the person makes taxable supplies, or (b) there are reasonable grounds for believing that the person will make taxable supplies in the period of 30 days then beginning. (3) Condition B is that those supplies (or any of them) are or will be made in the course or furtherance of a business carried on by the person. (4) Condition C is that the person has no business establishment, or other fixed establishment, in the United Kingdom in relation to any business carried on by the person. (5) Condition D is that the person is not registered under this Act. (2) (1) A person does not become liable to be registered by virtue of paragraph 1(2)(b) if the reason for believing that taxable supplies will be made in the 30-day period mentioned there is that a business, or part of a business, carried on by a taxable person is to be transferred to the person as a going concern in that period. (2) But if the transfer takes place, the transferee becomes liable to be registered under this Schedule at the time of the transfer if conditions A to D in paragraph 1 are met in relation to the transferee at that time. (3) In determining for the purposes of sub-paragraph (2) whether condition B is met, the reference in paragraph 1(3) to a business is to be read as a reference to the business, or part of the business, that is transferred to the transferee. (3) A person is treated as having become liable to be registered under this Schedule at any time when the person would have become so liable under paragraph 1 or 2 but for any registration that is subsequently cancelled under— (a) paragraph 11, (b) paragraph 13(3) of Schedule 1, (c) paragraph 6(2) of Schedule 2, (d) paragraph 6(3) of Schedule 3, or (e) paragraph 6(2) of Schedule 3A. (4) (1) A person does not cease to be liable to be registered under this Schedule except in accordance with sub-paragraph (2). (2) A person who has become liable to be registered under this Schedule ceases to be so liable at any time if the Commissioners are satisfied that— (a) the person has ceased to make taxable supplies in the course or furtherance of a business carried on by the person, or (b) the person is no longer a person in relation to whom condition C in paragraph 1 is met. (5) (1) A person who becomes liable to be registered by virtue of paragraph 1(2)(a) or 2(2) must notify the Commissioners of the liability before the end of the period of 30 days beginning with the day on which the liability arises. (2) The Commissioners must register any such person (whether or not the person so notifies them) with effect from the beginning of the day on which the liability arises. (6) (1) A person who becomes liable to be registered by virtue of paragraph 1(2)(b) must notify the Commissioners of the liability before the end of the period by reference to which the liability arises. (2) The Commissioners must register any such person (whether or not the person so notifies them) with effect from the beginning of the period by reference to which the liability arises. (7) (1) A person registered under paragraph 5 or 6 who, on any day, ceases to make or have the intention of making taxable supplies in the course or furtherance of a business carried on by that person must notify the Commissioners of that fact within 30 days beginning with that day. (2) But the person need not notify the Commissioners if on that day the person would otherwise be liable or entitled to be registered under this Act (disregarding for this purpose the person's registration under this Schedule and any enactment that prevents a person from being liable to be registered under different provisions at the same time). (8) (1) The Commissioners must cancel a person's registration under this Schedule if— (a) the person satisfies them that the person is not liable to be registered under this Schedule, and (b) the person requests the cancellation. (2) The cancellation is to be made with effect from— (a) the day on which the request is made, or (b) such later day as may be agreed between the Commissioners and the person. (3) But the Commissioners must not cancel the registration with effect from any time unless they are satisfied that it is not a time when the person would be subject to a requirement to be registered under this Act. (9) (1) The Commissioners may cancel a person's registration under this Schedule if they are satisfied that the person has ceased to be liable to be registered under this Schedule. (2) The cancellation is to be made with effect from— (a) the day on which the person ceased to be so liable, or (b) such later day as may be agreed between the Commissioners and the person. (3) But the Commissioners must not cancel the registration with effect from any time unless they are satisfied that it is not a time when the person would be subject to a requirement, or entitled, to be registered under this Act. (10) In determining for the purposes of paragraphs 8 and 9 whether a time is a time when a person would be subject to a requirement, or entitled, to be registered under this Act, so much of any provision of this Act as prevents a person from becoming liable or entitled to be registered when the person is already registered or when the person is so liable under any other provision must be disregarded. (11) (1) The Commissioners may cancel a person's registration under this Schedule if they are satisfied that the person was not liable to be registered under this Schedule on the day on which the person was registered. (2) The cancellation is to be made with effect from the day on which the person was registered. (12) Paragraphs 8 to 11 are subject to paragraph 18 of Schedule 3B (cancellation of registration under this Schedule of persons seeking to be registered under that Schedule etc). (13) (1) The Commissioners may exempt a person from registration under this Schedule if the person satisfies them that the taxable supplies that the person makes or intends to make— (a) are all zero-rated, or (b) would all be zero-rated if the person were a taxable person. (2) The power in sub-paragraph (1) is exercisable only if the person so requests and the Commissioners think fit. (3) If there is a material change in the nature of the supplies made by a person exempted under this paragraph, the person must notify the Commissioners of the change— (a) within 30 days beginning with the day on which the change occurred, or (b) if no particular day is identifiable as that day, within 30 days of the end of the quarter in which the change occurred. (4) If it appears to the Commissioners that a request under this paragraph should no longer be acted upon on or after any day or has been withdrawn on any day, they must register the person who made the request with effect from that day. (5) A reference in this paragraph to supplies is to supplies made in the course or furtherance of a business carried on by the person. (14) Any notification required under this Schedule must be made in such form and manner and must contain such particulars as may be specified in regulations or by the Commissioners in accordance with regulations.

Other amendments of VATA 1994

2

VATA 1994 is amended as follows.

3

In section 7 (place of supply of goods), in subsection (4)(c)(ii), after “Schedule 1” insert “ or 1A ”.

4

In section 54 (farmers etc), in subsection (2), after “Schedule 1” insert “ or is, has become or has ceased to be liable to be registered under Schedule 1A ”.

5

In section 55 (customers to account for tax on supplies of gold etc), in subsection (1)—

• (a) for “Schedule 1” substitute “ Schedules 1 and 1A ”, and

• (b) for “that Schedule” substitute “ Schedule 1 ”.

6

In section 55A (customers to account for tax on supplies of goods or services of a kind used in missing trader intra-community fraud), in subsection (3), for “Schedule 1” substitute “ Schedules 1 and 1A ”.

7

In section 69 (breaches of regulatory provisions), in subsection (1)(a), after “Schedule 1,” insert “ paragraph 7 of Schedule 1A, ”.

8

In section 73 (failure to make returns etc), in subsection (3)(b), after “Schedule 1,” insert “ paragraph 9 or 11 of Schedule 1A, ”.

9

In section 74 (interest on VAT recovered or recoverable by assessment), in subsection (1)(c), after “Schedule 1,” insert “ under paragraph 13 of Schedule 1A, ”.

10

In section 77 (assessments: time limits and supplementary assessments), in subsection (4C), after paragraph (a) insert—

(aa) paragraph 5, 6 or 13(3) of Schedule 1A,

.

11

• (1) Paragraph 1 of Schedule 1 (registration in respect of taxable supplies) is amended as follows.

• (2) In sub-paragraph (1)—

• (a) in paragraph (a), after “if” insert “ the person is UK-established and ”, and

• (b) in paragraph (b), after “if” insert “ the person is UK-established and ”.

• (3) In sub-paragraph (2), for “and the transferee is not registered under this Act at the time of the transfer” substitute “ , the transferee is UK-established at the time of the transfer and the transferee is not registered under this Act at that time ”.

• (4) After sub-paragraph (2) insert—

(2A) In determining the value of a person's supplies for the purposes of sub-paragraph (1)(a) or (2)(a), supplies are to be taken into account (subject to sub-paragraphs (3) to (7)) whether or not the person was UK-established when they were made.

• (5) In sub-paragraph (4)(a), after “below,” insert “ paragraph 11 of Schedule 1A, ”.

• (6) In sub-paragraph (5), after “below,” insert “ paragraph 11 of Schedule 1A, ”.

• (7) At the end insert—

(10) A person is “UK-established” if the person has a business establishment, or some other fixed establishment, in the United Kingdom in relation to a business carried on by the person.

12

In paragraph 3 of that Schedule, at the end of paragraph (b) insert

; or (c) is not at that time UK-established (see paragraph 1(10)).

13

Accordingly, in the heading of that Schedule, at the end insert “ : uk establishment ”.

14

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

15

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

16

In paragraph 1 of Schedule 3A (registration in respect of disposals of assets for which a VAT repayment is claimed)—

• (a) in sub-paragraph (1), after “Schedule 1,” insert “ 1A, ”, and

• (b) in sub-paragraph (2), after “Schedule 1,” insert “ paragraph 11 of Schedule 1A, ”.

17

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

Amendments of other Acts

18

In Schedule 41 to FA 2008 (penalties: failure to notify and certain VAT and excise wrongdoing), in the Table in paragraph 1, after the entry for the obligations under Schedule 1 to VATA 1994 insert the following entry—

Value added tax	Obligations under paragraphs 5, 6 and 13(3) of Schedule 1A to VATA 1994 (obligations to notify liability to register and notify material change in nature of supplies made by person exempted from registration).

Application

19

The amendments made by this Schedule have effect in relation to supplies made or to be made on or after 1 December 2012.

SCHEDULE 29

1

VATA 1994 is amended as follows.

2

• (1) Section 18B (fiscally warehoused goods: relief) is amended as follows.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) In subsection (2)(d) omit “in such form as the Commissioners may by regulations specify”.

• (4) After subsection (2) insert—

(2A) A certificate under subsection (1)(d) or (2)(d) must be in such form as may be specified by regulations or by the Commissioners in accordance with regulations.

3

• (1) Section 18C (warehouses and fiscal warehouses: services) is amended as follows.

• (2) In subsection (1)(c) omit “, in such a form as the Commissioners may by regulations specify,”.

• (3) After subsection (1) insert—

(1A) A certificate under subsection (1)(c) must be in such form as may be specified by regulations or by the Commissioners in accordance with regulations.

4

In section 35(2) (refund of VAT to persons constructing certain buildings), for the words following paragraph (c) substitute—

as may be specified by regulations or by the Commissioners in accordance with regulations.

5

• (1) Section 39(3) (repayment of VAT to those in business overseas) is amended as follows.

• (2) Before paragraph (a) insert—

(za) for claims to be made in such form and manner as may be specified in the scheme or by the Commissioners in accordance with the scheme;

.

• (3) For paragraph (c) substitute—

(c) for generally regulating— (i) the time by which claims must be made, and (ii) the methods by which the amount of any repayment is to be determined and the repayment is to be made.

6

• (1) Section 48 (VAT representatives) is amended as follows.

• (2) For subsection (1B)(c) substitute—

(c) Council Regulation (EC) No 904/2010 of 7 October 2010 on administrative cooperation and combating fraud in the field of value added tax.

• (3) After subsection (4) insert—

(4A) Regulations under subsection (4) may require a notification under that subsection to be made in such form and manner, and to contain such particulars, as may be specified in the regulations or by the Commissioners in accordance with the regulations.

7

In section 54(6)(a) (farmers etc)—

• (a) omit “the form and manner in which”, and

• (b) for “is to be made” substitute “ to be made in the form and manner specified in the regulations or by the Commissioners in accordance with the regulations ”.

8

In Schedule 1 (registration in respect of taxable supplies), in paragraph 17 (notifications)—

• (a) after “form” insert “ and manner ”, and

• (b) for “as the Commissioners may by regulations prescribe” substitute “ as may be specified in regulations or by the Commissioners in accordance with regulations. ”

9

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

10

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

11

In Schedule 3A (registration in respect of disposals of assets for which a VAT repayment is claimed), in paragraph 8 (notifications)—

• (a) after “form” insert “ and manner ”, and

• (b) for “as the Commissioners may by regulations prescribe” substitute “ as may be specified in regulations or by the Commissioners in accordance with regulations. ”

12

• (1) Paragraph 2 of Schedule 11 (accounting for VAT and payment of VAT) is amended as follows.

• (2) In sub-paragraph (1) (keeping accounts and making returns), insert at the end “ or by the Commissioners in accordance with the regulations. ”

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

• (4) In sub-paragraph (3A) (statements containing particulars of certain supplies)—

• (a) for paragraph (b) substitute—

(b) specified by the Commissioners in accordance with the regulations,

, and

• (b) for “prescribed” substitute “ so specified ”.

• (5) In sub-paragraph (3B) (notification of certain events), for “determined by the Commissioners in accordance with powers conferred by the regulations” substitute “ by the Commissioners in accordance with the regulations ”.

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13

In consequence of the amendments made by this Schedule—

• (a) in FA 1996, omit section 30(2), and

• (b) in FA 2009, omit section 77(2)(d).

SCHEDULE 30

PART 1 — Reduced-rate supplies on or after 1 April 2011: deemed supply

1

• (1) In paragraph 45A(2)(b) of Schedule 6 to FA 2000 (reduced-rate supplies: deemed supply) for “80” substitute “ 65 ”.

• (2) The amendment made by this paragraph has effect in relation to a deemed supply if the actual supply in question was treated as taking place on or after 1 April 2011.

PART 2 — Taxable supplies on or after 1 April 2012 for use in recycling processes

2

Schedule 6 to FA 2000 (climate change levy) is amended as follows.

3

In paragraph 4(2)(b) (definition of taxable supply) for “45A” substitute “ 43B ”.

4

In paragraph 5(3) (taxable supplies: deemed supplies of electricity) for “45A” substitute “ 43B ”.

5

In paragraph 6(2A) (taxable supplies: deemed supplies of gas) for “45A” substitute “ 43B ”.

6

In paragraph 14(3A)(a) (use of electricity in an “exemption-retaining” way) for “, 18 and 18A” substitute “ and 18 ”.

7

Omit paragraph 18A (exemption: supply for use in recycling processes).

8

In paragraph 34 (time of supply of commodities other than gas and electricity: deemed supplies)—

• (a) in sub-paragraph (1)(b), for “45A” substitute “ 43B ”, and

• (b) in sub-paragraph (4), for “45A” substitute “ 43B ”.

9

In paragraph 39(1)(c) (regulations as to time of supply) for “45A” substitute “ 43B ”.

10

In paragraph 42 (amount payable by way of levy)—

• (a) in sub-paragraph (1)—

• (i) in paragraph (a) after “supply” (in the second place it occurs) insert “ or a supply for use in scrap metal recycling ”,

• (ii) in paragraph (c) for “were not a reduced-rate supply.” substitute “ were a supply to which paragraph (a) applies; ”, and

• (iii) after paragraph (c) insert—

(d) if the supply is a supply for use in scrap metal recycling, 20 per cent of the amount that would be payable if the supply were a supply to which paragraph (a) applies.

, and

• (b) after that sub-paragraph insert—

(1ZA) If a taxable supply is both a reduced-rate supply and a supply for use in scrap metal recycling, the amount payable by way of levy on the supply under sub-paragraph (1) is the lower of the two amounts provided for that supply under that sub-paragraph.

11

Before the cross-heading before paragraph 44 insert—

(43A) (1) For the purposes of this Schedule, a taxable supply is a supply for use in scrap metal recycling if— (a) the person to whom the taxable commodity is supplied intends to cause the commodity to be used as fuel in a process (“the recycling process”) to be carried out by that person which is the shredding (or fragmentation), pre-treatment and melting of scrap metal for recycling, and (b) the condition in sub-paragraph (2) is satisfied. (2) The condition is that there is another process (“the competing process”) that— (a) uses taxable commodities otherwise than as fuel, (b) produces a product of the same kind as one produced by the recycling process, (c) uses a greater amount of energy than the recycling process to produce a given quantity of that product, and (d) involves a lesser charge to levy for a given quantity of that product than would, but for paragraph 42(1)(d), be the case for the recycling process. (3) For the purposes of sub-paragraph (2)(a), taxable commodities are used “otherwise than as fuel” only if the supplies of those commodities to the person using them are exempted from the levy by virtue of paragraph 18. (4) Sub-paragraphs (5) and (6) apply where the recycling process or the competing process, as well as producing a product of the same kind as one produced by the other process (“the corresponding product”), also produces one or more products that are not (“different products”). (5) If the production of the different products is merely incidental to the production of the corresponding product, the different products are to be treated for the purposes of sub-paragraph (2)(c) and (d) as being of the same kind as the corresponding product. (6) If the production of the different products is not merely incidental to the production of the corresponding product— (a) the amounts of energy referred to in sub-paragraph (2)(c), and the amounts of the charge to levy referred to in sub-paragraph (2)(d), are to be determined on a just and reasonable apportionment, and (b) in calculating the amount payable by way of levy on the taxable supply, only the proportion of the supply that is the same as the proportion of the energy used by the recycling process to produce the corresponding product (as determined for the purposes of paragraph (a)) is to be treated as being a supply for use in scrap metal recycling. (7) In this paragraph— - “melting” means— 1. the pre-heating and first melting of scrap metal before casting into items (“intermediates”) for further processing or re-melting, or 2. the heating of scrap metal as part of the recycling process before any solidification and re-melting, - “metal” means aluminium or steel. (8) The Commissioners may by regulations make provision for giving effect to this paragraph. (9) Regulations under this paragraph may, in particular, include provision for determining whether or not a taxable supply is a supply for use in scrap metal recycling (to any extent). (43B) (1) This paragraph applies where— (a) a taxable supply (“the original supply”) has been made to any person (“the recipient”), (b) the original supply was made on the basis that it was, to any extent, a supply for use in scrap metal recycling or a reduced-rate supply, (c) it is later determined that the original supply was (or was to some extent) a different kind of supply, and (d) the amount payable on the supply on the basis mentioned in paragraph (b) is less than the amount payable on the supply on the basis of the later determination. (2) For the purposes of this Schedule— (a) the recipient is deemed to make a taxable supply to itself of the taxable commodity, and (b) the amount payable by way of levy on that deemed supply is— (i) the amount payable on the original supply on the basis of the later determination mentioned in sub-paragraph (1)(c), less (ii) the amount payable on the original supply on the basis mentioned in sub-paragraph (1)(b). (3) This paragraph does not apply where a supply is treated as not being a reduced-rate supply by virtue of paragraph 45B.

12

Omit paragraph 45A (reduced-rate supplies: deemed supply).

13

After paragraph 62(1)(c) (tax credits) insert—

(ca) after a taxable supply has been made on the basis that it was not a supply for use in scrap metal recycling, it is determined that the supply was (to any extent) a supply for use in scrap metal recycling; (cb) after a taxable supply has been made on the basis that it was (to any extent) a supply for use in scrap metal recycling, it is determined that the supply was such a supply to a greater extent than previously determined;

.

14

In paragraph 101(2)(a) (penalty for incorrect notification)—

• (a) in sub-paragraph (ii) omit “, 18A”,

• (b) omit the “or” after sub-paragraph (ii), and

• (c) before sub-paragraph (iv) insert—

(iiia) a supply (or supplies) for use in scrap metal recycling, or

.

15

In paragraph 146(3) (regulations subject to affirmative resolution procedure) omit “18A,”.

16

In paragraph 147 (interpretation)—

• (a) in the definition of “prescribed”, omit “, 18A”, and

• (b) insert at the appropriate place—

“supply for use in scrap metal recycling” has the meaning given by paragraph 43A(1);

.

17

Omit section 188 of FA 2003 (climate change levy: exemption for fuel used in recycling process).

18

• (1) FA 2011 is amended as follows.

• (2) In section 79 (which provides for a lower rate of climate change levy for Northern Ireland gas supplies treated as taking place before 1 November 2013), in subsection (2)—

• (a) omit the “and” after paragraph (b), and

• (b) after that paragraph insert—

(ba) the supply is not a supply for use in scrap metal recycling (within the meaning of that Schedule (see paragraph 147)), and

.

• (3) Omit section 80 (power to suspend exemption for supplies used in recycling process).

19

The amendments made by paragraphs 2 to 18 have effect in relation to supplies of taxable commodities so far as the commodities are actually supplied on or after 1 April 2012.

PART 3 — Rates of climate change levy for supplies on or after 1 April 2013

20

In paragraph 42(1) of Schedule 6 to FA 2000 (amount payable by way of levy) (as amended by paragraph 10(a) above)—

• (a) before paragraph (c) insert—

(ba) if the supply is a reduced-rate supply of electricity, 10 per cent of the amount that would be payable if the supply were a supply to which paragraph (a) applies;

,

• (b) in paragraph (c), for “a” (in the first place it occurs) substitute “ any other ”, and

• (c) for the table substitute—

Taxable commodity supplied	Rate at which levy payable if supply is not a reduced-rate supply or a supply for use in scrap metal recycling
Electricity	£0.00524 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	£0.00182 per kilowatt hour
Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state	£0.01172 per kilogram
Any other taxable commodity	£0.01429 per kilogram

.

21

In paragraph 43B(1) of Schedule 6 to FA 2000 (supplies for use in scrap metal recycling and reduced-rate supplies: deemed supply) (as inserted by paragraph 11 above), for paragraph (b) substitute—

(b) the original supply was made on the basis that it was, to any extent— (i) a supply for use in scrap metal recycling, (ii) a reduced-rate supply of electricity, or (iii) a reduced-rate supply of any other taxable commodity,

.

22

In section 79 of FA 2011 (which provides for a lower rate of climate change levy for Northern Ireland gas supplies treated as taking place before 1 November 2013), in subsection (3)(a), for “£0.00062” substitute “ £0.00064 ”.

23

The amendments made by paragraphs 20 to 22 have effect in relation to supplies treated as taking place on or after 1 April 2013.

SCHEDULE 31

1

Schedule 6 to FA 2000 (climate change levy) is amended as follows.

2

In paragraph 44(1)(a), (2A) and (2C) (definition of “reduced-rate” supply) for “Secretary of State” substitute “ Administrator ”.

3

In paragraph 45(1) (variation of certificates under paragraph 44) for “Secretary of State” substitute “ Administrator ”.

4

In paragraph 45B(2) and (6) (removal of reduced rate) for “Secretary of State” (wherever occurring) substitute “ Administrator ”.

5

In the cross-heading before paragraph 47 omit “with Secretary of State”.

6

In paragraph 47(1) (definition of “climate change agreement”: direct agreements)—

• (a) in paragraph (a), for “Secretary of State” substitute “ Administrator ”,

• (b) omit the “and” after paragraph (f),

• (c) in paragraph (g)—

• (i) for “five-yearly” substitute “ seven-yearly ”, and

• (ii) after “Secretary of State” insert “ or the Administrator ”, and

• (d) after paragraph (g) insert

, and (h) containing any terms required by regulations falling within paragraph 52E.

7

• (1) Paragraph 48 (definition of “climate change agreement”: combination of umbrella and underlying agreements) is amended as follows.

• (2) In sub-paragraph (3)(c)—

• (a) for “five-yearly” substitute “ seven-yearly ”, and

• (b) after “Secretary of State” insert “ or the Administrator ”.

• (3) In sub-paragraph (4)—

• (a) in paragraph (a), for “Secretary of State” substitute “ Administrator ”,

• (b) omit the “and” after paragraph (c), and

• (c) after paragraph (d) insert

, and (e) containing any terms required by regulations falling within paragraph 52E.

• (4) In sub-paragraph (5)—

• (a) for paragraph (b) substitute—

(b) entered into with the Administrator,

,

• (b) omit paragraph (c),

• (c) omit the “and” after paragraph (d), and

• (d) after paragraph (e) insert

, and (f) containing any terms required by regulations falling within paragraph 52E.

8

• (1) Paragraph 49 (supplemental provision relating to climate change agreements) is amended as follows.

• (2) In sub-paragraph (3) for “Secretary of State” (wherever occurring) substitute “ Administrator ”.

• (3) In sub-paragraph (7) for “paragraphs 47 and 48 and this paragraph” substitute “ this Part of this Schedule ”.

• (4) In sub-paragraph (8)—

• (a) for “Secretary of State” substitute “ Administrator ”,

• (b) after paragraph (a) insert “ or ”, and

• (c) omit paragraph (c) and the “or” before it.

9

After paragraph 52 insert—