The Climate Change Levy (General) Regulations 2001

• (7) A special utility scheme shall not be either amended or terminated early except in accordance with this regulation.

PART VI — DEATH, INCAPACITY, INSOLVENCY, TRANSFERS

Individuals: death or incapacity

55

• (1) The Commissioners may, for CCL purposes and subject to this regulation, treat a person who carries on relevant activities on behalf of an individual who has died or become temporarily incapacitated as if they were the same person.

• (2) Such treatment may continue pending someone other than that individual being registered under Part V of the Act in relation to those activities or the incapacity ceasing.

• (3) A person who carries on relevant activities in the circumstances described in paragraph (1) must notify the Commissioners of this in writing and that notification must also include the date of death or the date and nature of the incapacity.

• (4) This notification must be delivered to the Commissioners within 21 days starting with the day after the person begins carrying on the relevant activities.

• (5) In this regulation, “relevant activities” refers to any activities in relation to which the individual in question is or was a registrable person.

Insolvency

56

• (1) The Commissioners may, for CCL purposes and subject to this regulation, treat a person who carries on relevant activities of a registrable person to whom an insolvency procedure is applied as if they were the same person.

• (2) Such treatment may continue pending someone other than that registrable person being registered under Part V of the Act in relation to those activities or the insolvency procedure no longer being applied.

• (3) A person who carries on relevant activities in the circumstances described in paragraph (1) must notify the Commissioners of this in writing and that notification must also include the date the insolvency procedure was first applied.

• (4) This notification must be delivered to the Commissioners within 21 days starting with the day after the person begins carrying on the relevant activities.

• (5) In this regulation—

• “relevant activities” refers to any activities in relation to which the individual in question is or was a registrable person;

• “registrable person” may include, as appropriate, the estate of a deceased individual.

• (6) An insolvency procedure is applied to a person for the purposes of this regulation in the circumstances described by paragraphs 120(7) to 120(9) of the Act (insolvency procedures for the purposes of this regulation).

Representatives: death, incapacity or insolvency

57

• (1) If the Commissioners so require, a representative who controls the assets of a registrable person because of death, incapacity or the application of an insolvency procedure shall, for the purposes of CCL and subject to this regulation, be treated as if he was the registrable person.

• (2) Any requirement resulting from paragraph (1) for the representative to pay CCL shall only apply to the extent of the assets he controls.

• (3) Any other requirement resulting from paragraph (1) shall apply in the same way as it would have applied to the registrable person but for the death, incapacity or insolvency procedure.

• (4) In this regulation—

• “relevant activities” refers to any activities in relation to which the registrable person in question is or was registrable;

• “registrable person” may include, as appropriate, the estate of a deceased individual.

• (5) An insolvency procedure is applied to a person for the purposes of this regulation in the circumstances described by paragraphs 120(7) to 120(9) of the Act (insolvency procedures for the purposes of this regulation).

Insolvency: consumers liable to penalty or interest

58

• (1) This regulation applies where, in relation to a person (“the consumer”)—

• (a) the Commissioners assess and notify an amount due by way of penalty from the consumer for conduct falling within paragraph 98 (evasion) or 101 (incorrect notification for exclusion or exemption) of the Act;

• (b) that amount or any penalty interest it carries remains unpaid; and

• (c) an insolvency procedure applies to the consumer.

• (2) The person appointed for the purposes of the application of the insolvency procedure (“the appointee”) must notify the Commissioners of this in writing and that notification must also include the date the insolvency procedure first applied.

• (3) This notification must be delivered to the Commissioners within 21 days starting with the day after the appointment takes effect or notice of the penalty or interest reaches the appointee, whichever is the later.

• (4) Subject to this regulation, the appointee shall be treated to the extent and for the duration of the appointment as the same person as the consumer for the purposes of Part IX of the Act (civil penalties).

• (5) An insolvency procedure is applied to a person for the purposes of this regulation in the circumstances described by paragraphs 120(7) to 120(9) of the Act (insolvency procedures for the purposes of this regulation).

Transfers of going concerns

59

• (1) Where—

• (a) a business carried on by a person who is registered under Part V of the Act is transferred to another person as a going concern,

• (b) the registration of the transferor has not been cancelled,

• (c) the transfer requires that the transferor’s registration be cancelled and that the transferee either be registered for CCL or notify the Commissioners that he is registrable for CCL, and

• (d) a written application for this purpose is made to the Commissioners by the transferor and transferee,

the Commissioners may, with effect from the date of the transfer, cancel the registration of the transferor and register the transferee in his place with the registration number previously allocated to the transferor.

• (2) Should the Commissioners cancel the registration of the transferor and register the transferee in his place under paragraph (1) then, in order to secure continuity in the application of the Act—

• (a) any liability of the transferor existing at the date of the transfer to make a return or account for or pay CCL shall become the liability of the transferee;

• (b) any entitlement of the transferor, whether or not existing at the date of the transfer, to a tax credit or repayment under the Act, Part II of these Regulations or Schedule 1 to these Regulations shall become the entitlement of the transferee;

• (c) any other provision by or under the Act relating to CCL that applied to the transferor before his registration was cancelled (or any such provision that continues to apply to the transferor after that cancellation) shall apply to the transferee; and

• (d) any circumstances relating to the application of the Act (or any provision made under the Act) to the CCL affairs of the transferor before his registration was cancelled (or any such circumstances that continue to apply to the transferor after that cancellation) shall apply to the transferee.

• (3) In addition to the provisions set out in paragraph (2), where—

• (a) the Commissioners cancel the registration of the transferor and register the transferee in his place under paragraph (1) with effect from a date earlier than the accounting period in which they do so, and

• (b) either the transferor or the transferee has, in relation to any time on or after that date but before the start of that accounting period—

• (i) made a return,

• (ii) accounted for CCL, or

• (iii) claimed a relevant tax credit,

the matters referred to in sub-paragraphs (b)(i) to (b)(iii) shall be treated as having been done by the transferee.

PART VII — PENALTIES

60

• (1) A person who fails to comply with a requirement imposed on him by or under any of the following provisions of these Regulations shall be liable to a penalty of £250 for each such failure—

• (a) regulation 5(1), 5(2), 5(3) or 5(4);

• (b) regulation 6(2);

• (c) regulation 7(1), 7(2), 7(3) or 7(4);

• (d) regulation 8;

• (e) regulation 27(1) or 27(2);

• (f) regulation 28(6) or 28(8);

• (g) regulation 37(5);

• (h) regulation 38 and paragraph 4, 12(3), ... 15(a) or 15(b) of Schedule 1;

• (ha) regulation 51B(5);

• (hb) regulation 51H(1) and paragraph 2, 3(1), 3(3), 3(4), 3(5), 4, 5, 6, 7, 11(2) or 12(1) of Schedule 2;

• (hc) paragraph 3 of Schedule 3;

• (i) regulation 55(3) or 55(4);

• (j) regulation 56(3) or 56(4);

• (k) regulation 58(2) or 58(3).

• (2) A specific act or omission shall attract only one such penalty if the circumstances are such that, but for this paragraph, it would attract more than one penalty.

PART VIII — CONSEQUENTIAL AMENDMENTS

61

In regulation 2(1) of the Distress for Customs and Excise Duties and Other Indirect Taxes Regulations 1997⁹ under the meaning given for “relevant tax” insert—

(f) climate change levy;

SCHEDULE 1 — CERTIFICATION AND MANNER OF PAYMENT OF CCL DUE IN THE CASE OF EXCLUDED, EXEMPT ...... OR REDUCED-RATE SUPPLIES

Basic rules

1

This Schedule applies in relation to a supply to which regulation 34, 35 or 36 applies ....

2

CCL shall not be due on the percentage of the supply properly determined in accordance with the following formula (the “CCL relief formula”):

$$P=(C+M+(r×R))Q×100$NotesPthe percentage of the supply on which CCL is not due (the “CCL relief percentage”) which must not be less than 0 per cent. nor more than 100 per cent.Qthe quantity of the taxable commodity supplied.In the case of electricity:Q includes any of that quantity that falls within the exclusion from CCL provided for by paragraph 9(2)(f)—community heating arrangements;Q does not include any of that quantity, apart from as described in (a) above, that falls within the exclusion from CCL provided for by paragraph 8—domestic or charity use;Q does not include any of that quantity that falls within the exemption from CCL provided for by or under paragraph 16, 19 or 20A – electricity supplied exempt directly or indirectly from combined heat and power stations, or electricity supplied from renewable source.In all cases, Q does not include any quantity referable to exclusions under paragraph 8 (domestic or charity use) but does include any such quantity referable to the exclusion provided for by paragraphs 8 and 9(2)(f) (community heating arrangements).Cthe quantity of the taxable commodity referable to the sum of every relevant excluded part (paragraphs 8 and 9(2)(f)—community heating arrangements).Mthe quantity of the taxable commodity referable to the sum of every exempt part:paragraph 11—onward supplies and exports;paragraph 12—transport; paragraph 12A—mineralogical and metallurgical processes; paragraph 13—commodity producers;paragraph 14—electricity producers;paragraph 15—combined heat and power stations;paragraph 18—non-fuel use; ... paragraph 21—regulation 41 of these Regulations (or other relevant regulations made under that paragraph of the Act to avoid double charges to CCL).r 0.92 in the case of electricity; 0.77 in the case of any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state; and 0.89 in any other case. ...R the quantity of the taxable commodity referable to the sum of every reduced-rate part (paragraph 44—climate change agreement)....The paragraph numbers referred to in these notes refer to the relevant paragraphs in Schedule 6 to the Finance Act 2000.$

Notes

In the case of electricity:

• (a) Q includes any of that quantity that falls within the exclusion from CCL provided for by paragraph 9(2)(f)—community heating arrangements;

• (b) Q does not include any of that quantity, apart from as described in (a) above, that falls within the exclusion from CCL provided for by paragraph 8—domestic or charity use;

• (c) Q does not include any of that quantity that falls within the exemption from CCL provided for by or under paragraph 16 or 19—electricity up to specified limit from partly exempt combined heat power station or electricity from renewable source.

In all cases, Q does not include any quantity referable to exclusions under paragraph 8 (domestic or charity use) but does include any such quantity referable to the exclusion provided for by paragraphs 8 and 9(2)(f) (community heating arrangements).

Cthe quantity of the taxable commodity referable to the sum of every relevant excluded part (paragraphs 8 and 9(2)(f)—community heating arrangements).Mthe quantity of the taxable commodity referable to the sum of every exempt part:paragraph 11—onward supplies and exports;paragraph 12—transport;paragraph 13—commodity producers;paragraph 14—electricity producers;paragraph 15—combined heat and power stations;paragraph 18—non-fuel use;paragraph 21—regulation 41 of these Regulations (or other relevant regulations made under that paragraph of the Act to avoid double charges to CCL).0.5H50% of the quantity of the taxable commodity referable to the sum of every half-rate part (paragraph 43—horticultural producers).0.8R80% of the quantity of the taxable commodity referable to the sum of every reduced-rate part (paragraph 44—climate change agreement).

The paragraph numbers referred to in these notes refer to the relevant paragraphs in Schedule 6 to the Finance Act 2000.

3

• (1) Any supplier certificate delivered by the recipient shall represent to the best of the recipient’s judgment any information required by regulation 34(2) (exclusions and exemptions), regulation 35(2) (... reduced-rate) or 36(2) (reduced-rate for certain supplies to a facility covered by a climate change agreement), or regulation 37(3) (combinations).

• (2) A supplier certificate may relate to more than one supply (subject to Part III of these Regulations and the other provisions of this Schedule).

• (3) Accordingly, if it relates to more than one supply, a supplier certificate shall provide a recipient’s relief percentage based on—

• (a) the likely number of supplies to which it will relate,

• (b) the likely quantity of the taxable commodity in question that will be supplied to him by the supplier if those supplies are made, and

• (c) any other relevant circumstances.

4

The supplier shall apply the CCL relief percentage to any supply he makes to which the supplier certificate relates and may, for this purpose, rely on the percentage (the “recipient’s relief percentage”) provided by the recipient in accordance with regulation 38(2).

Compulsory updates and corrections to CCL due

5

• (1) The recipient shall review the correctness of the supplier certificate no later than the earlier of—

• (a) the sixtieth day after the expiry of one year starting from its implementation date, or

• (b) the sixtieth day after the recipient has burned (or, in the case of electricity, consumed) the last of the taxable commodity supplied to which the supplier certificate relates.

• (2) That correctness shall be reviewed in relation to—

• (a) (if sub-paragraph (1)(a) applies), the elapsed period of one year starting with the implementation date (and this period is referred to in sub-paragraph (3) as the “review period”), or

• (b) (if sub-paragraph (1)(b) applies), the CCL relief percentage calculated on the basis of actual events.

• (3) If—

• (a) the review demonstrates that the supplier certificate was correct, and

• (b) that certificate also relates to supplies made or to be made by the supplier after the end of the review period,

that supplier certificate shall be regarded for the purposes of Part III of these Regulations and this Schedule as having as its implementation date the anniversary of its original implementation date (and sub-paragraphs (1) and (2) shall apply accordingly).

This sub-paragraph is subject to paragraph 16 (5 year renewal limit).

• (4) Sub-paragraphs (5) to (10) apply if the review demonstrates that the supplier certificate was incorrect.

• (5) If the supplier certificate was incorrect because the CCL relief percentage applied was too low, the recipient may act in accordance with paragraphs 6 to 10 (provision for tax credits) (subject to paragraph 11).

• (6) For the purposes of sub-paragraph (5), the benefit and extent of any relevant tax credit must be allocated to supplies in reverse chronological order (see paragraphs 6 to 10, tax credits for recipients, etc).

This means that supplies treated as taking place later have priority over supplies treated as taking place earlier.

• (7) Sub-paragraphs (8) to (9F) apply if (a) the supplier certificate was incorrect because the CCL relief percentage was too high, and (b) paragraphs 24(1B) and 24(3) , or paragraph 43B, of the Act (Deemed supply: change of circumstances etc or ... reduced-rate supplies: deemed supply) apply accordingly in relation to supplies made on the basis of that certificate in that review period.

• (8) For the purposes of sub-paragraph (7), the extent to which the supplier certificate was incorrect must be allocated to supplies in reverse chronological order (about which see sub-paragraph (6)).Any supplies then deemed to be made under paragraph 24(3) or 43B(2) of the Act are treated as taking place at the time of the review in question under sub-paragraph (1).

• (9) But the Commissioners may exempt the recipient from any consequential requirement to be registered if the following conditions and requirements are satisfied (for registration, see paragraphs 24(3), 40 , 43B(2)(a) and 53(1) of the Act).

• (9A) First, the recipient must not otherwise be a registrable person (for registrable, see regulation 2(1)).

• (9B) Secondly, the recipient must deliver a relevant written application to the Commissioners within 30 days starting from the day after compliance with sub-paragraph (1).

• (9C) That application must include notification of the following—

• (a) the type and quantity of taxable commodity so deemed to be supplied by the recipient under paragraph 24(3) or 43B(2) of the Act,

• (b) the amount of CCL payable by the recipient as a result, and

• (c) the number of such payments the recipient anticipates having to make annually.

• (9D) Thirdly, the recipient must pay the CCL due on those supplies to the Commissioners no later than the 30th day after the one on which the approval decision is delivered.

• (9E) If the Commissioners do not exempt the recipient but sub-paragraphs (9A), (9B) and (9C) are satisfied, the 30 days for notifying registrability starts on the day the refusal decision is delivered (for notifying registrability, see regulations 2(5) and 20(a) of the Climate Change Levy (Registration and Miscellaneous Provisions) Regulations 2001).

• (9F) Exemption from registration under sub-paragraph (9) applies only in relation to the consequential requirement mentioned there in relation to sub-paragraphs (7) and (8).Such exemption may be of limited duration and revoked by the Commissioners at any time.

• (9G) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (10) If the recipient does not review the accuracy of the supplier certificate in accordance with sub-paragraph (1), and the certificate was (or remains) incorrect, paragraph 101 of the Act shall apply accordingly (civil penalty for incorrect certification, etc. subject to reasonable excuse).

• (11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tax credits for recipient

6

• (1) The recipient in each of the following cases is entitled to a tax credit in respect of any relevant amount of CCL charged on the supply in question (subject to paragraph 5(5) and the other provisions of this Schedule including those provisions relating to the making of a relevant claim to the Commissioners)—

• (a) after a taxable supply has been made, there is such a change in circumstances or any person’s intentions that, if the changed circumstances or intentions had existed at the time the supply was made, the supply would not have been a taxable supply;

• (b) after a supply of a taxable commodity is made on the basis that it is a taxable supply, it is determined that the supply was not (to any extent) a taxable supply;

• (c) after a taxable supply has been made on the basis that it was not ... a reduced-rate supply, it is determined that the supply was (to any extent) ... a ... reduced-rate supply;

• (ca) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (e) after a charge to CCL has arisen on a supply of a taxable commodity (“the original commodity”) to a person who uses the commodity supplied in producing taxable commodities primarily for his own consumption, that person makes supplies of any of the commodities in whose production he has used the original commodity.

• (2) In sub-paragraph (1), “relevant amount of CCL” refers to the difference between—

• (a) the amount of CCL that ought to have been charged by or under the Act at the time of supply had the supplier certificate been correct, and

• (b) the amount of CCL that the supplier accounted for (or ought to have accounted for) on the basis of the incorrect supplier certificate.

7

A tax credit shall only arise under paragraph 6 if a claim is made by the recipient acting in accordance with paragraph 8 or 9, as the case requires.

8

• (1) Subject to sub-paragraph (4), the recipient shall claim any such tax credit—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) by bringing it into account when he is accounting for CCL due from him for any accounting period ....

• (2) Accordingly, in the case of a claim under sub-paragraph (1)(b)—

• (a) the requirements of regulation 5 (content of returns), regulation 6 (payment of CCL) and regulation 7 (CCL accounts) apply subject to sub-paragraph (1)(b); but

• (b) sub-paragraph (1)(b) applies subject to regulation 27 (corrections) and regulation 28 (corrections not exceeding £50,000).

• (3) A claim subject to sub-paragraphs (1) and (2) shall be regarded as a claim for repayment of CCL for the purposes of paragraph 64 of the Act (supplemental provisions about repayments, etc.) (and see sub-paragraph (4)).

• (4) Where the total tax credit claimed by a recipient exceeds the total of any CCL due from him for the accounting period in question, ... the Commissioners shall repay to him an amount equal to the excess (but see regulations 29 and 30).

• (5) Given the provision made by paragraph 62(4) of the Act, this paragraph has effect subject to paragraph 64 of the Act (application of supplemental provisions about repayments: 4 year time limit, unjust enrichment, etc.).

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

9

• (1) Where the recipient is not registrable or is exempt from registration (see paragraph 5(9)), the Commissioners shall repay to him the amount of the tax credit if they are satisfied that he has made a proper claim to them in writing for this purpose.

• (2) A recipient making a claim under sub-paragraph (1) must furnish to the Commissioners full particulars in relation to the tax credit claimed, including (but not limited to)—

• (a) any relevant supplier certificate on the basis of which the relevant CCL was accounted for by the supplier;

• (b) any relevant analysis document supporting any such supplier certificate;

• (c) the amount of the CCL in question and the date and manner of its payment to the Commissioners whether by the recipient, the supplier or otherwise;

• (d) the circumstances, events, records and documentary or other evidence by virtue of which the recipient claims that any relevant entitlement to a tax credit arises;

• (e) the period of time by reference to which the recipient consumed the relevant taxable commodity or was supplied with the relevant taxable commodity by the supplier to whom he delivered the relevant supplier certificate; and

• (f) any matter, item or particular in any way relevant to the question whether or not a tax credit arises under this Schedule in favour of the recipient.

• (3) Where the Commissioners are satisfied that a person who has made a claim in accordance with sub-paragraphs (1) and (2) is entitled to a tax credit and that he has not previously had the benefit of that credit, they shall repay to him an amount equal to the credit (but see regulations 29 and 30).

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

• (5) Given the provision made by paragraph 62(4) of the Act, this regulation has effect subject to paragraph 64 of the Act (application of supplemental provisions about repayments: 4 year time limit, unjust enrichment, etc.).

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

10

If and to the extent that they may be relevant for the purposes of this Schedule, regulations 19 to 25 (unjust enrichment: reimbursement arrangements to be disregarded) shall apply in relation to a tax credit provided for by this Schedule as if—

• (a) the reference in regulation 19 to “claim” included a claim made under this Schedule; and

• (b) the references in those regulations to “(recipient)” or “(recipients)” were not present.

11

No tax credit shall arise under Part II of these Regulations where provision for a tax credit is made in this Schedule.

Miscellaneous

12

• (1) The recipient may deliver to the supplier a further certificate updating the information in the original supplier certificate in the light of actual or anticipated events.

• (1A) The recipient must deliver to the supplier a further certificate updating the information in the original supplier certificate where the recipient’s entitlement to claim relief is affected by any change to the CCL relief formula.

• (1B) The further certificate referred to in sub-paragraph (1A) must be delivered to the supplier no later than the date on which the recipient’s first annual review following the change in the CCL relief formula must be completed.

• (1C) For the purpose of sub-paragraph (1B), “annual review” means the review required by paragraph 5(1) in relation to the original supplier certificate.

• (1D) If the recipient is required to deliver a further certificate in accordance with sub-paragraph (1A) and fails to do so within the time limit specified in sub-paragraph (1B), paragraph 101 of the Act shall apply accordingly (civil penalties: incorrect certificates).

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

• (3) The supplier shall then apply the CCL relief percentage to any supplies he makes to which the updated supplier certificate relates and may, for this purpose, rely on the relevant recipient’s relief percentage as updated.

• (4) Paragraphs 5 (compulsory updates) and 6 (recipient’s tax credits) have effect subject to any updates made by the recipient under this paragraph.

• (5) Any provision of these Regulations, including this Schedule, that applies to or in relation to a supplier certificate shall apply to or in relation to such a supplier certificate as updated under this paragraph.

13

• (1) Where a recipient changes supplier, any supplier certificate delivered to any earlier supplier (and any supporting analysis document) shall not have effect in relation to supplies from the later supplier.

• (1A) Where a supplier changes under paragraph (1) without the recipient’s active participation and the supplier certificate and supporting analysis document are transferred to the later supplier—

• (a) continuity is preserved for all CCL purposes in relation to the change, and

• (b) the certificate and document are deemed to have been originally given by the recipient to that later supplier.

If there is no such transfer, the supplier certificate and supporting analysis document shall not have effect in relation to supplies from the later supplier.

• (2) In the case of sub-paragraph (1) or if continuity is not preserved in the case of sub-paragraph (1A), paragraphs 5 to 11 shall apply in relation to the combined effect of the supplier certificate the recipient delivered to the earlier supplier and the supplier certificate he delivers to the later supplier.

14

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

15

A recipient who delivers a supplier certificate shall—

• (a) retain a copy for a period of six years starting with the time of supply of the final supply to which it relates,

• (b) retain any relevant analysis document for a period of six years starting with the time of supply of the final supply to which it relates, and

• (c) make a copy of any such certificate and analysis document available to the Commissioners on request.

Signed

M. J. Eland — Commissioner of Customs and Excise — 9th March 2001

Explanatory note

(This note is not part of the Regulations)

1 These Regulations make further provision for climate change levy (CCL) following the Climate Change Levy (Registration and Miscellaneous Provisions) Regulations 2001¹⁰. These Regulations have effect from the introduction of CCL on 1st April 2001.

2 The provision made for things like payment and record-keeping echo those in force for other taxes and duties administered by Customs and Excise. Accordingly regulations 3 to 6 require relevant traders to make returns and pay the CCL due from them in accordance with their allocated accounting periods (usually quarterly). Regulations 7 to 9 require the traders to keep proper records for up to six years. Regulations 10 to 33 provide mechanisms for adjusting, correcting or properly establishing the amount of CCL paid or due.

3 Regulations 34 to 39, 43 and the Schedule provide for the administration of CCL exclusions, exemptions and lower rates. Customers must certify entitlement as necessary and calculate the proportional reduction in the CCL due. Suppliers can then act on this information to calculate the appropriate reduction in the CCL they must pay to Customs. Both customers and suppliers must provide Customs with relevant data. The customer is responsible for periodically reviewing the reduction claimed and making the necessary adjustments or corrections. The customer must therefore keep proper records.

4 Supplies for the production of a range of commodities is exempt from CCL¹¹. Regulation 40 provides a non-exhaustive list of those activities that are too remote from the production process to qualify for the exemption.

5 Regulations 41, 42 and 45 avoid a double charge to CCL and facilitate the enjoyment of the half-rate¹² and reduced-rate¹³ of CCL. In each case a mischief would otherwise arise because of a supply made by or to an electricity supplier whose purchases of taxable commodities are not generally exempt from CCL.

6 Regulation 44 enables solid fuel and LPG to be delivered for storage away from a facility covered by a climate change agreement without loss of the reduced-rate of CCL.

7 Regulations 47 and 48 prescribe the initial generation and certification requirements on which the exemption for renewable source electricity¹⁴ depends. Regulations 49 to 51 prescribe the continuing and other administrative requirements for that exemption. The Gas and Electricity Markets Authority and the Director General of Electricity Supply for Northern Ireland have a significant regulatory role to play starting from before the electricity is generated and only ending well after it has been consumed.

8 Regulation 52 ensures that producers of electricity in large scale hydro generating stations or nuclear power stations do not escape CCL if they consume any of that electricity themselves.

9 Regulation 53 prescribes limits above which a person is not a small-scale user of electricity or gas. This affects the frequency with which a supplier must issue a climate change levy accounting document to that person¹⁵.

10 Regulation 54 makes provision for the early termination of a special utility scheme (a scheme for determining when supplies of electricity or gas take place)¹⁶.

11 Regulations 55 to 59 again echo older provisions in force for other taxes and duties. They relate to representation in the case of death, incapacity or insolvency and the transfer of a business as a going concern.

12 A breach of these Regulations may lead to a penalty under regulation 60 or, in certain cases, under Schedule 6 to the Finance Act 2000.

13 Regulation 61 is included to allow the levying of distress for the recovery of CCL¹⁷.

Footnotes

Editorial notes