UKPGA-2000-17 Finance Act 2000 UK

In section 36(1) of the Alcoholic Liquor Duties Act 1979 (rate of duty on beer), for “£11.50" substitute “ £11.89 ”.

This section shall be deemed to have come into force on 1st April 2000.

In section 62(1A) of the Alcoholic Liquor Duties Act 1979 (rates of duty on cider)—

This section shall be deemed to have come into force on 1st April 2000.

For Part I of the Table of rates of duty in Schedule 1 to the Alcoholic Liquor Duties Act 1979 (wine and made-wine) substitute—

This section shall be deemed to have come into force on 1st April 2000.

In section 6(1A) of the Hydrocarbon Oil Duties Act 1979 (rates of duty on hydrocarbon oil)—

In section 11(1) of that Act (rebate on heavy oil)—

In section 13A(1A) of that Act (rebate on unleaded petrol)—

In section 14(1) of that Act (rebate on light oil for use as furnace fuel), for “£0.0265" substitute “ £0.0274 ”.

This section shall be deemed to have come into force at 6 o’clock in the evening of 21st March 2000.

In section 1 of the Hydrocarbon Oil Duties Act 1979 (definitions of oil), after subsection (3) insert—.

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In section 27(1) of that Act (interpretation), at the appropriate places insert—;; and.

This section shall come into force on such day as the Commissioners of Customs and Excise may appoint by order made by statutory instrument.

Schedule 2A to the Hydrocarbon Oil Duties Act 1979 (mixing of rebated oils) is amended in accordance with Schedule 1 to this Act.

The amendments in that Schedule come into force on the day appointed under section 5(6).

Section 13 of the Hydrocarbon Oil Duties Act 1979 (penalties for misuse of rebated heavy oil) is amended as follows.

In subsection (1)—

After subsection (1) insert—.

This section shall have effect in relation to liability arising on or after 1st May 2000.

Schedule 1 to the Hydrocarbon Oil Duties Act 1979 (which sets out the categories of excepted vehicle which may use rebated heavy oil as fuel) is amended as follows.

Omit the following provisions—

This section shall have effect in relation to the use of rebated heavy oil as fuel on or after 1st May 2000.

The Hydrocarbon Oil Duties Act 1979 is amended in accordance with subsections (2) to (4).

In section 11 (rebate on heavy oil), after subsection (2) insert—.

In section 20AA(2) (provision in connection with allowing reliefs)—

In section 24 (regulations controlling use of duty-free and rebated oil), after subsection (4B) insert—.

In paragraph 4 of Schedule 5 to the Finance Act 1994 (decisions under the Hydrocarbon Oil Duties Act 1979 of which a review may be required), after sub-paragraph (1) insert—.

In section 6A of the Hydrocarbon Oil Duties Act 1979 (duty on fuel substitutes), after subsection (2) (definition of chargeable use) insert—.

This section shall have effect in relation to duty charged on or after the day on which this Act is passed.

For the Table of rates of duty in Schedule 1 to the Tobacco Products Duty Act 1979 substitute—

This section shall be deemed to have come into force at 6 o’clock in the evening of 21st March 2000.

Section 5 of the Tobacco Products Duty Act 1979 (retail price of cigarettes) is amended as follows.

In subsection (1) (meaning of retail price) for the words from “shall be taken to be" to the end substitute.

In subsection (3) (determination of price by Commissioners), for “paragraph (a) of subsection (1)" substitute “ paragraph (b) of subsection (1) ”.

In subsection (4) (reference to arbitration of Commissioners’ determination), for “subsection (1)(a)" substitute “ subsection (1)(b) ”.

The Tobacco Products Duty Act 1979 has effect subject to the following amendments.

In section 2(2) (remission or repayment of duty where tobacco products exported, shipped as stores or used for research or experiment), for the words from “that" to the end of paragraph (b) substitute—.

Section 7 (regulations for management of duty) is amended as follows.

After paragraph (a) of subsection (1) (method of charging duty and securing and collecting duty) insert—.

In paragraph (b) of subsection (1) (registration of premises for storage of tobacco), after “regulating their" insert “ storage and ”.

After that paragraph insert—.

In paragraph (c) of subsection (1), omit sub-paragraph (i) (which is superseded by the amendment made by subsection (6) above).

In paragraph (d) of subsection (1), for “and the making of such returns, as may be specified in the regulations" substitute “ the notification of such information, and the making of such returns, as may be specified in the regulations or required by the Commissioners ”.

After subsection (1) insert—.

For the table in section 11(2) of the Finance Act 1997 (rates of gaming duty) substitute—

This section has effect in relation to accounting periods beginning on or after 1st April 2000.

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At the end of the section add—.

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This section applies to any carriage of a passenger on an aircraft which begins on or after 1st April 2001.

Section 31 of the Finance Act 1994 is amended as follows.

Omit subsections (1) and (2) (exemption in relation to passengers making return journeys within the United Kingdom).

After subsection (4A) insert—.

Omit subsection (6) (provision by regulations for subsection (1) to have effect in relation to journeys begun in the Isle of Man).

In consequence of the provision made by subsection (2) above, in section 43 of the Finance Act 1994 (interpretation)—

This section applies to any carriage of a passenger on an aircraft which begins on or after 1st April 2001.

In paragraph 1 of Schedule 1 to the Vehicle Excise and Registration Act 1994 (rate of duty applicable where no other rate specified), in sub-paragraphs (2) and (2A) for “1,100 cubic centimetres" (the reduced rate threshold) substitute “ 1,200 cubic centimetres ”. This amendment applies to licences issued on or after 1st March 2001.

Refunds shall be made by the Secretary of State, in accordance with the following provisions of this section, in respect of licences—where the amount of vehicle excise duty chargeable on the licence would have been less if the amendment in subsection (1) had applied.

The amount of the refund is—

The person entitled to the refund is—

For the purposes of subsection (4) the keeper of the vehicle shall be taken to be—

A refund shall only be made if an application is made for it in such form, and containing such particulars and supported by such documents, as the Secretary of State may require.

The Secretary of State shall give notice in writing to any person appearing to him to be entitled to a refund—

An application for, or the making of, a refund under this section in respect of a licence does not affect the validity of the licence.

For the purposes of section 19 of the Vehicle Excise and Registration Act 1994 (surrender of licences) as it applies to the surrender on or after 1st March 2001 of a licence in respect of which a refund under this section has been made, or applied for, the annual rate of duty chargeable on the licence shall be taken to be that which would have been chargeable if the amendment in subsection (1) above had applied.

Section 45 of that Act (offence of false or misleading declaration) applies to a declaration in connection with an application for a refund under this section as it applies to a declaration in connection with an application for a vehicle licence.

In the application of this section to Northern Ireland, references to registration as the keeper of a vehicle shall be read as references to registration as the owner of the vehicle.

In paragraph 1 of Schedule 1 to the Vehicle Excise and Registration Act 1994 (rate of duty applicable where no other rate specified)—

This section applies to licences issued on or after 1st March 2001.

Schedule 5 to this Act (which makes provision for new rates of vehicle excise duty for goods vehicles etc.) has effect.

The provisions of that Schedule apply in relation to licences issued after 21st March 2000.

Section 157 of the Customs and Excise Management Act 1979 (bonds and security) is amended as follows.

In subsection (1) (power to require security), for “by bond" substitute “ (or further security) by bond, guarantee ”.

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In subsection (2) (bonds for the purposes of assigned matters), after “Any bond" insert “ , guarantee or other security ”.

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Schedule 6 to this Act (which makes provision for a new tax that is to be known as climate change levy) shall have effect.

Schedule 7 to this Act (climate change levy: consequential amendments) shall have effect.

Part V of Schedule 6 to this Act (registration for the purposes of climate change levy) shall not come into force until such date as the Treasury may appoint by order made by statutory instrument; and different days may be appointed under this subsection for different purposes.

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In subsection (12), paragraphs (b) and (e) and the word “and" immediately preceding paragraph (e) shall cease to have effect.

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This section has effect in relation to—and any regulations made under subsection (3) of section 25 of the Finance Act 1990 (as substituted by subsection (4) above) within three months of the passing of this Act may be so made as to apply to any payments in relation to which this section has effect.

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In section 347A of that Act (annual payments and interest: general rule), subsections (2)(b), (7) and (8) shall cease to have effect.

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In subsection (6) of section 505 of that Act (charities: general), the words “and, for this purpose, all covenanted payments to charity (within the meaning of section 347A(7)) shall be treated as a single item” shall cease to have effect.

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Section 59 of the Finance Act 1989 (covenanted subscriptions) shall cease to have effect.

Where a deed of covenant executed by an individual before 6th April 2000 provides for the payment of specified amounts, any amount payable under the deed on or after that date shall be determined as if the individual were entitled to deduct tax from that amount at the basic rate.

This section shall have effect in relation to covenanted payments—

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This section applies if—

The amount of those expenses which can used for that purpose is limited to the amount allocated to the charitable income.

The amount of the expenses allocated to the charitable income is determined by apportioning them rateably between the charitable income and the non-charitable income.

In this section—“charitable income” means income within section 628(1) or 630(1) of ITTOIA 2005,“non-charitable income” means income which is not charitable income, and“qualifying income” and “UK settlement” have the same meaning as in section 628 of ITTOIA 2005.

This section has effect in relation to qualifying income arising to a UK trust on or after 6th April 2000.

In the Taxation of Chargeable Gains Act 1992, after section 236 insert—.

After Schedule 7B to that Act insert the Schedule 7C set out in Schedule 9 to this Act.

The Board shall not approve a profit sharing scheme under Schedule 9 to the Taxes Act 1988 (approval of share option schemes and profit sharing schemes) unless the application for approval is received by the Board before 6th April 2001.

For the purposes of subsection (1) an application for approval which is not accompanied by the particulars and evidence referred to in paragraph 1(2) of that Schedule is not regarded as received by the Board until the required particulars and evidence have been received by them.

In section 186 of that Act (approved profit sharing schemes), in subsection (1) (under which the section applies to appropriations of shares made after 5th April 1979) after “5th April 1979" insert “ and before 1st January 2003 ”.

In Schedule 9 to the Taxes Act 1988 (approved share option schemes and profit sharing schemes), in paragraph 3(2) (grounds for withdrawing approval of profit sharing schemes), after “below" in paragraph (e) insert—.

After paragraph 3(3) of that Schedule insert—.

Schedule 9 to the Taxes Act 1988 (share option schemes and profit sharing schemes) is amended in accordance with subsections (2) to (4).

In paragraph 9(1) (requirements to be satisfied by shares in share option schemes), after “below" insert “ (disregarding paragraph 11A) ”.

After paragraph 11 (requirements as to listing etc.) insert—.

In paragraph 12—

Subsections (1) to (4) shall be deemed to have come into force on 21st March 2000.

Subsections (3) and (4) do not have effect in relation to shares acquired before 21st March 2000 by the trustees of a profit sharing scheme approved under Schedule 9 to the Taxes Act 1988.

In paragraph 2 of Schedule 9 to the Taxes Act 1988 (conditions for approval of share option schemes and profit sharing schemes), after sub-paragraph (2) insert—.

In paragraph 3(2) of that Schedule (withdrawal of approval of profit sharing schemes), before paragraph (d) insert—.

This section shall be deemed to have come into force on 21st March 2000.

Section 69 of the Finance Act 1989 (chargeable events in relation to employee share ownership trusts) is amended in accordance with subsections (2) to (5).

In subsection (1) (definition of “chargeable event”), after paragraph (d) insert—.

After subsection (3) insert—.

In subsection (5) after “(1)(d)" insert “ or (e) ”.

After that subsection insert—.

In section 70 of the Finance Act 1989 (chargeable amounts), after subsection (3) insert—.

Schedule 15 to this Act (which makes provision for the corporate venturing scheme) has effect.

Schedule 16 to this Act (which makes consequential amendments) has effect.

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Subject to that, Schedules 15 and 16 apply in relation to shares issued on or after 1st April 2000 but before 1st April 2010.

Schedule 19 to this Act (meaning of “research and development”) has effect. In that Schedule—Part I contains a new definition of “research and development” for the purposes of the Tax Acts, and Part II contains consequential amendments.

The amendments in Part II of that Schedule have effect—

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Schedule 21 to this Act (which contains consequential amendments) has effect accordingly.

In section 118 of the Finance Act 1994 (notification requirements)—

This section has effect for chargeable periods as respects which the period specified in subsection (3A) of that section ends on or after 1st April 2000.

In section 41 of the Capital Allowances Act 1990 (writing-down allowances etc for leased assets and inexpensive cars)—shall cease to have effect for chargeable periods ending on or after the relevant date.

Subsection (3) below applies where—

The balance of the excess (after the deduction of any writing-down allowances made by reference to it) shall be treated for the purposes of sections 24, 25 and 26 of the Capital Allowances Act 1990 as capital expenditure which—

In this section—“the relevant chargeable period” means the chargeable period immediately preceding that which begins on or before and ends on or after the relevant date;“the relevant date” means, subject to subsection (5) below, 6th April 2000 for the purposes of income tax and 1st April 2000 for the purposes of corporation tax.

A person may, by a notice given to an officer of the Board, elect that this section shall have effect in relation to any trade carried on by him as if the relevant date were 6th April 2001 or, as the case may be, 1st April 2001.

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In paragraph 9(4) of Schedule 5 to the Taxes Act 1988 (treatment of farm animals etc for purposes of Case I of Schedule D), for the words from “in relation to animals" to the end there shall be substituted—.

The enactments amended by subsections (1) and (2) above shall be deemed always to have had effect with the amendments made by those subsections.

In section 365(3) of the Taxes Act 1988 (loans to buy annuities)—

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In section 369(1A) of that Act (deductible percentage where interest payable under deduction of tax), for the words from “the percentage" to the end there shall be substituted “ 23 per cent. ”.

This section has effect in relation to payments of interest made on or after 6th April 2000.

In section 165(1) of the Taxation of Chargeable Gains Act 1992 (relief for gifts of business assets), in the closing words (which list the provisions restricting relief), for “sections 166 and 167" substitute “ sections 166, 167 and 169 ”.

In section 260(1) of that Act (gifts on which inheritance tax is chargeable etc.), in the closing words (which list the provisions restricting relief), for “section 261" substitute “ sections 169 and 261 ”.

In section 165(2)(b)(i) of, and paragraph 2(2)(b)(i) of Schedule 7 to, that Act (shares or securities in respect of which gifts relief may be claimed), for “neither listed on a recognised stock exchange nor dealt in on the Unlisted Securities Market" substitute “ not listed on a recognised stock exchange ”.

In section 165(3)(b) of that Act (disposals of shares or securities excepted from gifts relief), after “shares or securities," insert “ the transferee is a company or ”.

This section has effect in relation to disposals made on or after 9th November 1999.

After section 76 of the Taxation of Chargeable Gains Act 1992, insert—.

After Schedule 4 to that Act insert the Schedule 4A set out in Schedule 24 to this Act.

This section applies to any disposal of an interest in settled property made, or the effective completion of which falls, on or after 21st March 2000. Expressions used in this subsection have the same meaning as in Schedule 4A to the Taxation of Chargeable Gains Act 1992.

After section 76A of the Taxation of Chargeable Gains Act 1992 (inserted by section 91(1) above), insert—.

After Schedule 4A to that Act (inserted by section 91(2) above), insert the Schedule 4B set out in Schedule 25 to this Act.

After section 85 of that Act, insert—.

After Schedule 4B to the Taxation of Chargeable Gains Act 1992 (inserted by subsection (2) above), insert the Schedule 4C set out in Part I of Schedule 26 to this Act. The consequential amendments in Part II of Schedule 26 to this Act have effect.

The provisions of this section have effect in relation to any transfer of value in relation to which the material time is on or after 21st March 2000. The expressions “transfer of value” and “material time” have the same meaning in this subsection as in Schedule 4B to the Taxation of Chargeable Gains Act 1992.

After section 79 of the Taxation of Chargeable Gains Act 1992, insert—.

This section applies to gains accruing on or after 21st March 2000.

After section 79A of the Taxation of Chargeable Gains Act 1992 (inserted by section 93 above), insert—.

This section applies where a chargeable gain accrues on or after 21st March 2000 to a company that is not resident in the United Kingdom.

Section 85 of the Taxation of Chargeable Gains Act 1992 (disposal of interest in non-resident settlements) is amended as follows.

In subsection (2) (market value uplift for interest where trustees become non-resident) for “Subject to subsections (4) and (9) below," substitute “ Subject to subsections (4), (9) and (10) below, ”.

In subsection (5) (market value uplift for interest where trustees become treaty non-resident), at the beginning insert “ Subject to subsection (10) below, ”.

After subsection (9) add—.

This section applies where the material time (within the meaning of section 85(10) of the Taxation of Chargeable Gains Act 1992, inserted by subsection (4) above) falls on or after 21st March 2000.

In section 96(5) of the Taxation of Chargeable Gains Act 1992 (capital payments by trustees to non-resident company), in the opening words (which refer to the persons by whom the company is controlled), omit “and each of them is then resident or ordinarily resident in the United Kingdom".

This section applies to payments received on or after 21st March 2000.

For sections 92 to 95 of the Finance Act 1993 there shall be substituted—.

Where any of the items referred to in section 93(4)(b) of the Finance Act 1993 (as substituted by subsection (1) above) fall to be taken into account in the first accounting period in relation to which this section has effect, the amounts of those items shall be computed and expressed in the relevant currency by reference to the London closing exchange rate for the last day of the immediately preceding accounting period.

Where any amount falls to be taken into account under Chapter 5 of Part 2 of the Capital Allowances Act as available qualifying expenditure for the first accounting period in relation to which this section has effect relate to expenditure which was incurred before the beginning of that period, the amounts of those items shall be computed and expressed in the relevant currency by reference to the London closing exchange rate for the last day of the immediately preceding accounting period.

Subject to subsection (5) below, this section has effect for accounting periods beginning on or after 1st January 2000 and ending on or after 21st March 2000.

Any company which did not, for the accounting period immediately preceding the first accounting period falling within subsection (4) above, make an election in respect of a trade or part of a trade under the Local Currency Elections Regulations 1994 may, by notice given to an officer of the Board on or before 31st August 2000, elect that this section shall not have effect in relation to it until the first accounting period beginning on or after 1st July 2000.

Chapter VIIA of Part IV of the Taxes Act 1988 (paying and collecting agents) shall cease to have effect.

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In this section—

In Schedule 13 to the Finance Act 1999 (instruments chargeable and rates of duty), in Part I (conveyance or transfer on sale), in the third column of the table in paragraph 4—

This section applies to instruments executed on or after 28th March 2000.

But this section does not apply to an instrument giving effect to a contract made on or before 21st March 2000, unless—

This section shall be deemed to have come into force on 28th March 2000.

In Schedule 13 to the Finance Act 1999 (instruments chargeable and rates of duty), in Part II (lease)—for “£500" substitute “ £5,000 ”.

This section has effect in relation to instruments executed on or after 28th March 2000.

This section shall be deemed to have come into force on 28th March 2000.

In paragraph 12(3) of Schedule 13 to the Finance Act 1999 (rates of stamp duty on leases where part of consideration is rent), in paragraph 1 of the table, for “less than 7 years" substitute “ not more than 7 years ”.

This section applies to instruments executed on or after 1st October 1999, subject to Schedule 32 to this Act (which makes transitional provision for instruments executed on or after 1st October 1999 but before 28th March 2000).

This section shall be deemed to have come into force on 28th March 2000.

Subsection (2) applies where—

For the purposes of Part I of Schedule 13 to the Finance Act 1999 (stamp duty on conveyance or transfer on sale) the instrument transferring or vesting the estate or interest shall be taken to be a transfer on sale of the estate or interest.

If—the amount of duty that would (apart from this subsection) be chargeable in consequence of subsection (2) on the transfer on sale there mentioned shall be reduced (but not below nil) by the total of the ad valorem duty chargeable as mentioned in paragraph (b).

If, for the purposes of Part I of Schedule 13 to the Finance Act 1999, the amount or value of the consideration for the transfer on sale mentioned in subsection (2) would (apart from this subsection) exceed the market value of the estate or interest immediately before the execution of the instrument transferring or vesting it, the amount or value of the consideration shall be taken for those purposes to be equal to that market value.

For the purposes of this section, the market value of property at any time is the price which that property might reasonably be expected to fetch on a sale at that time in the open market.

Subsection (2) has effect even though—

Subsection (2) does not affect any charge to stamp duty in respect of the same or any other instrument so far as it relates to the transfer of the other property.

This section is subject to subsection (5) of section 119.

This section shall be construed as one with the Stamp Act 1891.

This section applies to instruments executed on or after 28th March 2000.

But this section does not apply to an instrument giving effect to a contract made on or before 21st March 2000, unless—

This section shall be deemed to have come into force on 28th March 2000.

This section applies where an estate or interest in land is transferred to or vested in a company (“A”) and—

For the purposes of Part I of Schedule 13 to the Finance Act 1999 (stamp duty on conveyance or transfer on sale) an instrument transferring or vesting the estate or interest shall be taken to be a transfer on sale of the estate or interest.

If for those purposes the amount or value of the consideration for the transfer on sale of the estate or interest would, apart from this subsection, be less than the value determined under subsection (4), the consideration shall be taken for those purposes to be the value determined under subsection (4).

That value is—

Where—the stamp duty chargeable on the instrument shall be determined in accordance with this section (instead of that section).

This section applies only if, in consequence of its application, the instrument transferring or vesting the estate or interest is chargeable with a greater amount of stamp duty than it would be apart from this section and section 118.

For the purposes of this section, the market value of property at any time is the price which that property might reasonably be expected to fetch on a sale at that time in the open market.

In this section—“company” means any body corporate;“shares” includes stock and the reference to shares in a company includes a reference to securities issued by a company.

For the purposes of this section, the question whether any person is connected with another shall be determined in accordance with the provisions of section 1122 of the Corporation Tax Act 2010.

This section shall be construed as one with the Stamp Act 1891.

This section applies to instruments executed on or after 28th March 2000.

But this section does not apply to an instrument giving effect to a contract made on or before 21st March 2000, unless—

This section shall be deemed to have come into force on 28th March 2000.

Section 119 does not apply by virtue of paragraph (a) of subsection (1) of that section in any of the following cases (any reference in this section to A or B being taken as a reference to the person referred to as A or B, as the case may be, in that subsection).

Case 1 is where B holds the estate or interest as nominee or bare trustee for A.

Case 2 is where A is to hold the estate or interest as nominee or bare trustee for B.

Case 3 is where B holds the estate or interest as nominee or bare trustee for some other person and A is to hold it as nominee or bare trustee for that other person.

Case 4 is where (in a case not falling within subsection (2) or (4) above)—

Case 5 is where (in a case not falling within subsection (3) above) A—

Case 6 is where (in a case not falling within subsection (3) above) A is to hold the estate or interest as trustee and, apart from section 1122(6) of the Corporation Tax Act 2010 (trustees as connected persons), would not be connected with B.

Case 7 is where—

This section shall be construed as one with the Stamp Act 1891.

This section applies to instruments executed after the day on which this Act is passed.

This section applies where a lease is granted to a company (“A”) and—

Subsection (3) has effect for the purposes of stamp duty chargeable under Part II of Schedule 13 to the Finance Act 1999 (stamp duty on a lease) by reference to Part I of that Schedule (conveyance or transfer on sale).

If, apart from this subsection, the amount or value of the consideration for the grant would be less than the value determined under subsection (4), the consideration shall be taken to be the value determined under subsection (4).

That value is—

This section applies only if, in consequence of its application, the lease is chargeable with a greater amount of stamp duty than it would be apart from this section.

For the purposes of this section, the market value of property at any time is the price which that property might reasonably be expected to fetch on a sale at that time in the open market.

In this section—“company” means any body corporate;“shares” includes stock and the reference to shares in a company includes a reference to securities issued by a company.

For the purposes of this section, the question whether any person is connected with another shall be determined in accordance with the provisions of section 1122 of the Corporation Tax Act 2010.

This section shall be construed as one with the Stamp Act 1891.

This section applies to instruments executed on or after 28th March 2000.

But this section does not apply to an instrument giving effect to a contract made on or before 21st March 2000, unless—

This section shall be deemed to have come into force on 28th March 2000.

Subsection (2) applies where—

For the purposes of Part I of Schedule 13 to the Finance Act 1999 (stamp duty on conveyance or transfer on sale) the instrument transferring the marketable securities shall be taken to be a transfer on sale of those securities.

If the amount or value of the consideration for that transfer on sale would (apart from this subsection) exceed the market value of the marketable securities immediately before the execution of the instrument transferring them, the amount or value of the consideration shall be taken to be equal to that market value. For this purpose the market value of property at any time is the price which that property might reasonably be expected to fetch on a sale at that time in the open market.

Subsection (2) has effect even though—

Subsection (2) does not affect any charge to stamp duty in respect of the same or any other instrument so far as it relates to the transfer of the other property.

In this section “qualifying property” means any debt due, stock or securities, to the extent that the debt, stock or securities are not chargeable securities, within the meaning of Part IV of the Finance Act 1986 (stamp duty reserve tax).

This section shall be construed as one with the Stamp Act 1891.

This section applies to instruments executed on or after 28th March 2000.

But this section does not apply to an instrument giving effect to a contract made on or before 21st March 2000, unless—

This section shall be deemed to have come into force on 28th March 2000.

Amend section 42 of the Finance Act 1930 as follows.

In subsection (2) (instruments on which stamp duty not chargeable) in paragraph (a) for “to another" substitute “ (“the transferor”) to another (“the transferee”) ”.

In that subsection, after paragraph (b) insert— “ unless at the time the instrument is executed arrangements are in existence by virtue of which at that or some later time any person has or could obtain, or any persons together have or could obtain, control of the transferee but not of the transferor. ”.

In subsection (2B) (body to be parent of another if beneficial owner of 75% of ordinary share capital) after “if at that time the first body" insert “ (a) ” and at the end of the subsection add—.

In subsection (3)—

At the end of the section add—.

This section has effect in relation to instruments executed after the day on which this Act is passed.

Amend section 11 of the Finance Act (Northern Ireland) 1954 as follows.

After subsection (2) (instruments on which stamp duty not chargeable) insert—.

In subsection (3AA) (body to be parent of another if beneficial owner of 75% of ordinary share capital) after “if at that time the first body" insert “ (a) ” and at the end of the subsection add—.

In subsection (3A)—

At the end of the section add—.

This section has effect in relation to instruments executed after the day on which this Act is passed.

Amend section 151 of the Finance Act 1995 as follows.

In subsection (1) (stamp duty not chargeable on leases etc) at the end insert the following paragraph—.

After subsection (4) insert—.

In subsection (8) (body to be parent of another if beneficial owner of 75% of ordinary share capital) after “if at that time the first body" insert “ (a) ” and at the end of the subsection add—.

In subsection (10)—

After subsection (10) insert—.

This section has effect in relation to instruments executed after the day on which this Act is passed.

Amend section 55 of the Stamp Act 1891 (calculation of ad valorem duty in respect of stock and securities) as follows.

After subsection (1) insert—.

This section has effect in relation to instruments executed after the day on which this Act is passed.

Amend section 75 of the Finance Act 1986 (acquisitions: reliefs) in accordance with subsections (2) and (3).

In subsection (4), in paragraph (a) (which requires that the consideration for the acquisition consists of or includes the issue of shares) after “the issue of" insert “ non-redeemable ”.

In subsection (4), after paragraph (b) add—.

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

This section has effect in relation to instruments executed after the day on which this Act is passed.

Where a lease is or has been surrendered or, in Scotland, renounced at any time, a document evidencing the surrender or renunciation shall be treated for the purposes of stamp duty as if it were a deed executed at that time effecting the surrender or renunciation.

Stamp duty shall be chargeable by virtue of subsection (1) on a document containing a statutory declaration, notwithstanding anything in land registration rules under the Land Registration Act 2002.

Stamp duty shall not be chargeable by virtue of subsection (1) on any lease or agreement for a lease or with respect to any letting if the lease or agreement—

Stamp duty shall not be chargeable by virtue of subsection (1) on any document if a document falling within subsection (5) has been duly stamped.

The documents that fall within this subsection are—

A land registrar shall regard a document which by virtue of subsection (4) is not chargeable to stamp duty by virtue of subsection (1) as not duly stamped unless—

The documents which evidence the surrender or renunciation of a lease shall be taken to include an application, in consequence of the surrender or renunciation of the lease, for—of an entry relating to the lease.

In this section—“land register"—

This section shall be construed as one with the Stamp Act 1891.

This section applies to documents relating to the surrender or renunciation of a lease after the day on which this Act is passed.

No stamp duty is chargeable on an instrument for the sale, transfer or other disposition of intellectual property.

In subsection (1) “intellectual property” means—

Schedule 34 to this Act (which contains provisions supplementing this section) has effect.

This section and Schedule 34 shall be construed as one with the Stamp Act 1891.

This section applies to instruments executed on or after 28th March 2000.

This section shall be deemed to have come into force on that date.

This section applies to an instrument of any of the following descriptions executed in the period beginning with 22nd March 2000 and ending with the day on which this Act is passed—

If the instrument is not stamped until after the day on which this Act is passed, the law in force at the time of its execution shall be deemed for stamp duty purposes to be that which would have applied if it had been executed after that day.

If the Commissioners are satisfied that—they shall pay to such person as they consider appropriate an amount equal to the duty (and any interest or penalty) that would not have been payable if the law in force at the time of execution of the instrument had been that which would have applied had it been executed after that day.

Any such payment must be claimed before 1st April 2001.

Entitlement to a payment is subject to compliance with such conditions as the Commissioners may determine with respect to the production of the instrument, to its being stamped so as to indicate that it has been produced under this section or to other matters.

For the purposes of section 10 of the Exchequer and Audit Departments Act 1866 (Commissioners to deduct repayments from gross revenues) any amount paid under this section shall be treated as a repayment.

This section shall be construed as one with the Stamp Act 1891.

Amend section 55 of the Finance Act 1987 (Crown exemption from stamp duty) as follows.

In subsection (1) (which specifies the bodies relieved from stamp duty)—

In subsection (1), after “National Assembly for Wales," insert.

Subsection (3) has effect in relation to instruments executed on or after 28th March 2000.

This section shall be deemed to have come into force on 28th March 2000.

In section 79 of the Finance Act 1986 (loan capital), after subsection (7) insert—.

For the purposes of stamp duty, subsection (1) above has effect where the instrument is executed on or after 21st March 2000.

For the purposes of stamp duty reserve tax, subsection (1) above has effect—

In Part III of the Finance Act 1986 (stamp duty), after section 72 insert—.

In Part IV of the Finance Act 1986 (stamp duty reserve tax), after section 97A insert—.

In sections 67(9), 70(9), 95(1) and 97(1) of the Finance Act 1986 (transfers between depositary receipt systems or between clearance systems), the words “and is resident in the United Kingdom" and “and is so resident" shall cease to have effect.

In section 97A of that Act (clearance services: election for alternative system of charge), after subsection (12) add—.

The amendments in this section have effect as follows—

In section 3(2) of the Value Added Tax Act 1994 (taxable persons and registration), for “Schedules 1 to 3" there shall be substituted “ Schedules 1 to 3A ”.

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In section 69(1)(a) of that Act (breaches of regulatory provisions), for “or paragraph 5 of Schedule 3" there shall be substituted “ , paragraph 5 of Schedule 3 or paragraph 5 of Schedule 3A ”.

In section 73(3)(b) of that Act (failure to make returns etc.), for “or paragraph 6(2) or (3) of Schedule 3" there shall be substituted “ , paragraph 6(2) or (3) of Schedule 3 or paragraph 6(1) or (2) of Schedule 3A ”.

In section 74(1)(c) of that Act (interest on VAT recovered or recoverable by assessment), for “under paragraph 8 of Schedule 3" there shall be substituted “ , under paragraph 8 of Schedule 3 or under paragraph 7 of Schedule 3A ”.

In the following provisions of that Act—for “or paragraph 6(3) of Schedule 3" there shall be substituted “ , paragraph 6(3) of Schedule 3 or paragraph 6(2) of Schedule 3A ”.

In paragraph 1(3) of Schedule 3 to that Act (registration in respect of acquisitions from other member States), for “or paragraph 6(2) of Schedule 2" there shall be substituted “ , paragraph 6(2) of Schedule 2 or paragraph 6(2) of Schedule 3A ”.

After Schedule 3 to that Act there shall be inserted the Schedule 3A set out in Schedule 36 to this Act.

In paragraph 5(5) of Schedule 4 to that Act (matters to be treated as a supply of goods or services), for the words from “under sections 25 and 26" to the end there shall be substituted—.

Subsections (1) to (7) and (9) above have effect in relation to supplies made on or after 21st March 2000; and subsection (8) above and Schedule 36 to this Act have effect in relation to relevant supplies (within the meaning of Schedule 3A to that Act) made on or after that date.

Part IV of the Value Added Tax Act 1994 (administration, collection and enforcement) is amended as follows.

After section 69 (breaches of regulatory provisions) insert—.

In section 70(1) of that Act (mitigation of penalties), for “or 67" substitute “ , 67 or 69A ”.

In section 76(1) of that Act (assessment of amount due by way of penalty etc.), for “to 69" (in both places) substitute “ to 69A ”.

In section 83 of that Act (appeals), in paragraph (n) for “59 to 69" substitute “ 59 to 69A ”.

The Inheritance Tax Act 1984 is amended as follows.

In section 13 (dispositions by close companies for benefit of employees), in subsection (4), after paragraph (b) insert.

In section 72 (property leaving employee trusts and newspaper trusts)—

In section 86 (trusts for benefit of employees), in subsection (3), after paragraph (b) insert.

After section 9 of the Oil Taxation Act 1975 insert—.

This section has effect in relation to expenditure incurred on or after 21st March 2000.

In section 42 of the Finance Act 1996 (amount of landfill tax), in subsections (1)(a) and (2) for “£10" substitute “ £11 ”.

This section has effect in relation to taxable disposals made, or treated as made, on or after 1st April 2000.

In section 62 of the Finance Act 1996 (regulations about taxable disposals) amend subsection (7) (limit on power to make regulations providing that a disposal is not taxable) as follows.

For paragraph (a) substitute—.

In paragraph (b) for “the temporary disposal is made" substitute “ the material in question is held temporarily ”.

In section 60 of the Finance Act 1996 (which gives effect to Schedule 5 to the Act), after “penalties" insert “ , secondary liability ”.

Accordingly the sidenote to that section becomes “Information, powers, penalties, secondary liability, etc".

At the end of Schedule 5 to that Act (supplementary provisions relating to landfill tax) add the Part VIII set out in Schedule 37 to this Act.

Subsection (3) has effect in relation to taxable disposals made on or after the day on which this Act is passed.

Regulations may be made in accordance with Schedule 38 to this Act for providing incentives to use electronic communications.

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In section 17 of the Taxes Management Act 1970 (interest paid or credited by banks etc without or after deduction of tax), subsections (4B) and (4C) shall cease to have effect.

In subsection (5) of that section—

After paragraph (a) of subsection (6) of that section there shall be inserted—.

In subsection (1) of section 18 of that Act (interest paid without or after deduction of tax)—

Subsections (3) and (3AA) of that section shall cease to have effect.

In subsection (3A) of that section, after “interest paid" there shall be inserted “ or received ”.

At the end of subsection (3B) of that section there shall be inserted—.

After paragraph (a) of subsection (3C) of that section there shall be inserted—.

For subsection (3D) of that section there shall be substituted—.

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

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

After section 20B of the Taxes Management Act 1970 insert—.

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

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

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

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

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

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

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

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

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

Subject to subsections (2) and (3), a certificate to which this section applies continues (so far as not cashed in) to be held on the terms of the prospectus under which it was issued. However, any obligation of the Director of Savings to take steps to inform the holder of the certificate before the fifth anniversary of its purchase of what is to happen to the certificate after that anniversary extends to taking the corresponding steps in relation to the fifth anniversary of each occasion on which the certificate has undergone automatic roll-over.

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

References in this section to cashing in a certificate include reinvesting it.

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

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

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

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

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

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

After paragraph 2 of that Schedule insert—.

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

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

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

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

In section 23(2) (amount of duty)—

At the end of section 23 insert—.

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

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

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

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

Amend paragraph 4 of Schedule 4 as follows.

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

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

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

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

After Schedule 4 insert—.

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

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

The provisions referred to in sub-paragraph (1) are—Part I of Schedule 1 to the Vehicle Excise and Registration Act 1994 (the general rate), Part IA of that Schedule (graduated rates for light passenger vehicles first registered on or after 1st March 2001), or Part II of that Schedule (motorcycles).

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

The regulations may make different provision for different descriptions of vehicle and different descriptions of licence.

The prescribed particulars may include—

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

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

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

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

If that requirement is not complied with, the Secretary of State may by notice sent by post to the person inform him that the licence is void as from the time when it was granted. If he does so, the licence shall be void as from the time when it was granted.

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

The “monthly duty shortfall” means one-twelfth of the difference between—

A person who—commits an offence.

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

The “annual duty shortfall” means the difference between—

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

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

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

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

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

In the following provisions—insert “ and paragraph 11C ”.

After paragraph 11B insert—.

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

The levy is under the care and management of the Commissioners of Customs and Excise.

The levy is charged on taxable supplies.

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

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

The following are not taxable commodities—

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

A supply of a taxable commodity (or part of such a supply) is a taxable supply for the purposes of the levy if levy is chargeable on the supply under—paragraph 5 (supplies of electricity), paragraph 6 (supplies of gas), or paragraph 7 (other supplies in course or furtherance of business), and the supply (or part) is not excluded under paragraphs 8 to 10 or exempt under paragraphs 11 to 22.

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

Levy is chargeable on a supply of electricity if—

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

Levy is chargeable on a supply of electricity if—

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

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

Levy is chargeable on a supply of any gas if—

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

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

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

This paragraph applies to a supply of a taxable commodity other than—

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

A supply is excluded from the levy if it is—

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

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

Where a supply of a commodity is partly for domestic or charity use and partly not—

For the purposes of paragraph 8 the following supplies are always for domestic use—

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

For the purposes of this paragraph use for a relevant residential purpose means use as—except use as a hospital, a prison or similar institution or an hotel or inn or similar establishment.

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

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

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

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

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

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

In this paragraph—“railway vehicle” and “train” have the meaning given by section 83 of the Railways Act 1993;“non-railway vehicle” means—any vehicle other than a railway vehicle, or any ship, that is designed or adapted to carry not less than 12 passengers.

Sub-paragraph (1)(a) to (c) does not apply in relation to the transporting of passengers to, from or within—that is a place to which rights of admission, or where rights to use facilities at it, are supplied by the person to whom the commodity is supplied or by a person connected with him within the meaning of section 1122 of the Corporation Tax Act 2010.

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

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

“Metallurgical process” means a process of any of the following descriptions.

The descriptions are—

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

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

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

The Commissioners may by regulations make provision amending paragraph 13 for the purpose of—

Regulations under this paragraph that include provision made for the purpose mentioned in sub-paragraph (1)(a) may provide for the provision to have retrospective effect.

A statutory instrument that contains (whether alone or with other provisions) regulations under this paragraph made for the purpose mentioned in sub-paragraph (1)(b) shall not be made unless a draft of the instrument has been laid before... and approved by a resolution of the House of Commons.

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

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

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

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

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

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

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

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

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

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

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

For the purposes of this paragraph—

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

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

This paragraph applies to a supply that—

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

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

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

The supply is exempt from levy if it is a supply of electricity produced in—

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

This paragraph does not exempt the supply if—

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

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

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

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

A supply of electricity is exempt from the levy if—

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

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

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

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

A condition prescribed under sub-paragraph (1)(c) may be one that is required to be fulfilled throughout a period, including a period ending after the time when a supply whose exemption turns on the fulfilment of the condition is treated as being made.

The conditions that may be prescribed under sub-paragraph (3)(b) include, in particular, conditions in connection with—

Each of—shall supply the Commissioners with such information (whether or not obtained under this paragraph), and otherwise give the Commissioners such co-operation, as the Commissioners may require in connection with the application (whether generally or in relation to any particular case) of any relevant provisions.

In sub-paragraph (8) “relevant provisions” means provisions of or made under—

None of—(provisions restricting disclosure of information) applies to any disclosure of information made in pursuance of sub-paragraph (8).

This paragraph applies where a person (“the supplier”) makes supplies of electricity on the basis that they are exempt under paragraph 19 (“exempt renewable supplies”).

The rules about balancing and averaging periods are—

At the end of each balancing period calculate—

If the total mentioned in sub-paragraph (3)(a) exceeds that mentioned in sub-paragraph (3)(b)—

If the totals mentioned in paragraphs (a) and (b) of sub-paragraph (3) are the same—

If the total mentioned in sub-paragraph (3)(b) exceeds that mentioned in sub-paragraph (3)(a), then—

A supply of electricity is exempt from the levy chargeable under paragraph 5(1) if—

Sub-paragraph (1) does not apply in relation to a supply to a person of electricity produced in a wholly or partly exempt combined heat and power station where the supply is made to that person from the station.

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

For the purposes of this paragraph and paragraph 20B, electricity is “CHP electricity” if—

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

A condition prescribed under sub-paragraph (1)(c) may be one that is required to be fulfilled throughout a period, including a period ending after the time when a supply whose exemption turns on the fulfilment of the condition is treated as being made.

The conditions that may be prescribed under sub-paragraph (4)(c) include in particular conditions in connection with any of the matters mentioned in paragraphs (b) to (f) of sub-paragraph (5).

Each of—shall supply the Commissioners with such information (whether or not obtained under this paragraph), and otherwise give the Commissioners such co-operation, as the Commissioners may require in connection with the application of this paragraph (whether generally or in relation to any particular case).

Paragraph 19(10) (disclosure of information) applies in relation to sub-paragraph (8) above as it applies in relation to paragraph 19(8).

This paragraph applies where a person (“the supplier”) makes supplies of electricity on the basis that they are exempt under paragraph 20A (“exempt CHP supplies”).

The rules about balancing and averaging periods are—

At the end of each balancing period calculate—

If the total mentioned in sub-paragraph (3)(a) exceeds that mentioned in sub-paragraph (3)(b)—

If the totals mentioned in paragraphs (a) and (b) of sub-paragraph (3) are the same—

If the total mentioned in sub-paragraph (3)(b) exceeds that mentioned in sub-paragraph (3)(a), then—

The Commissioners may by regulations make provision for avoiding, counteracting or mitigating double charges to levy.

For the purposes of this paragraph there is a double charge to levy where—

In sub-paragraph (2)(b) “taxable supply” does not include a deemed supply under paragraph 24A, 24B, 24C or 42D.

Regulations under this paragraph may, in particular, make provision for a supply of a taxable commodity to be wholly or to any extent—

The provision mentioned in sub-paragraph (3) includes provision for exceptions to any of sub-paragraphs (1) to (3) of paragraph 23 or paragraph 24(3).

The powers conferred by this paragraph are in addition to the powers to make provision by tax credit regulations in relation to any such case as is mentioned in paragraph 62(1)(g).

The Commissioners may by regulations make provision for giving effect to the exclusions and exemptions provided for by paragraphs 8 to 21.

Regulations under this paragraph may, in particular, include provision for—

Where an electricity utility—the utility is for the purposes of this Schedule deemed to make a supply to itself of that quantity of the electricity.

Where a gas utility—the utility is for the purposes of this Schedule deemed to make a supply to itself of that quantity of the gas.

Where—the person is for the purposes of this Schedule deemed to make a supply to himself of that quantity of the commodity.

The Commissioners may by regulations make provision for electricity to be treated for the purposes of sub-paragraph (3)(b)(ii)—

The conditions that may be prescribed under sub-paragraph (4) include, in particular, conditions in connection with the materials from which the electricity is produced.

This paragraph applies in the following cases.

The first case is where—

The second case is where—

This paragraph does not apply where the reason that—is that it was, or was thought to be, exempt from the levy under paragraph 19 or 20A (exemption for supply of electricity produced from renewable sources or in combined heat and power stations) (but see paragraph 20 or 20B).

Where this paragraph applies, The person to whom the supply was made is for the purposes of this Schedule deemed to make a taxable supply of the commodity to himself.

Where—the reference in sub-paragraph (3) to the commodity shall be read as a reference to a corresponding part of it.

Where—sub-paragraph (3) only applies to so much (if any) of the commodity supplied as was not used in the premises before they ceased to be premises of any of those descriptions.

The Commissioners may by regulations make provision specifying descriptions of occurrences and non-occurrences that are to be taken as being, or as not being, changes of circumstances or intentions for the purposes of sub-paragraph (1A)(c).

Sub-paragraph (2) applies if—

For the purposes of this Schedule the owner of the station is deemed to make a taxable supply to himself of that quantity of the commodity.

In sub-paragraph (1)(a) the reference to a commodity being brought onto, or arriving at, a site covers (in particular) gas in a gaseous state arriving at the site through a pipe.

For the purposes of sub-paragraph (1) it does not matter—

Sub-paragraph (2) applies if—

For the purposes of this Schedule the operator of the station is deemed to make a taxable supply to himself of that quantity of the commodity so far as that quantity is referable to the production of electricity to which sub-paragraph (2A) does not apply.

This sub-paragraph applies to electricity so far as—

Condition A is that the producer of the electricity makes no supply of it to another person, but causes it to be consumed in the United Kingdom.

Condition B is that the electricity is supplied (within the meaning of Part 1 of the Electricity Act 1989 (see section 64 of that Act)) by a person who is an exempt unlicensed electricity supplier.

For the purposes of sub-paragraph (2) the extent to which a quantity of a commodity is referable to the production of electricity to which sub-paragraph (2A) does not apply is to be determined in accordance with regulations under paragraph 24D(1).

In sub-paragraph (1)(a) the reference to a commodity being brought onto, or arriving at, the CHPQA site of a station covers (in particular) gas in a gaseous state arriving at the CHPQA site through a pipe.

In sub-paragraph (1)(b) “outputs” has the meaning given by paragraph 148(9).

For the purposes of sub-paragraph (1) it does not matter—

For the purposes of this paragraph—“CHP Qualifying Power Output” has the meaning given by section 4 of the Combined Heat and Power Quality Assurance Standard, Issue 5 (November 2013), prepared by the Department of Energy and Climate Change or, if that issue of the Standard has been replaced by another issue, by the current issue of the Standard (taking account, in either case, of any amendment which has been made to the issue);“CHPQA scheme”, in relation to a combined heat and power station, means the scheme in relation to which the station's CHPQA certificate was issued;“CHPQA site”, in relation to a fully exempt combined heat and power station or a partly exempt combined heat and power station, means the site of the CHPQA scheme.

This paragraph applies if—

For the purposes of this Schedule—

The Commissioners may by regulations make provision for giving effect to paragraphs 24A to 24C and 42A to 42D.

Regulations under sub-paragraph (1) may, in particular, include provision—

Regulations under sub-paragraph (1) may include—

This paragraph applies—

Where this paragraph applies, a supply is treated as taking place each time a climate change levy accounting document in respect of a supply is issued by the person making the supply.

A supply that is treated as taking place under this paragraph is a supply of the electricity or gas covered by the accounting document.

Nothing in this paragraph applies to any electricity or gas that is covered by a special utility scheme (see paragraph 29).

This paragraph applies where on any day—

A climate change levy accounting document covering the electricity or gas actually supplied on that day must be issued by the supplier no later than—

A climate change levy accounting document issued under this paragraph that covers the electricity, or the gas of any kind, actually supplied on any day must also cover any electricity or (as the case may be) any gas of that kind that—

For the purposes of this paragraph—

A climate change levy accounting document issued under this paragraph must contain a statement of—

For the purposes of this paragraph a person is, on any day, a small-scale user of a commodity if the rate at which he is taken to be supplied with that commodity on that day does not exceed the prescribed rate.

The Commissioners may make provision by regulations as to the rate at which a person is, for the purposes of sub-paragraph (6), taken to be supplied with a commodity on any day.

Regulations under sub-paragraph (7) may, in particular, include provision for—

Nothing in this paragraph applies to any electricity or gas—

This paragraph applies subject to paragraph 36(5).

This paragraph applies where on any day—

Where this paragraph applies, a supply is treated as taking place at the end of that period.

A supply that is treated as taking place under this paragraph is a supply of all the electricity or (as the case may be) gas of the same kind that—

Sub-paragraph (4) of paragraph 27 (interpretation of “covered by an accounting document”) applies for the purposes of this paragraph as for those of that paragraph.

Nothing in this paragraph applies to any electricity or gas—

For the purposes of this Schedule a “special utility scheme” is a scheme for determining when—is treated as taking place in cases where the electricity or gas is covered by the scheme.

If in the opinion of the Commissioners it is reasonable to do so, they may in accordance with the provisions of this paragraph prepare a special utility scheme for a utility or for two or more utilities. In this paragraph “utility” includes a person who makes supplies on which levy is chargeable by virtue of paragraph 5(2) (partly exempt combined heat and power stations).

A special utility scheme shall specify the period for which it is to have effect.

No special utility scheme shall be of any effect in relation to any electricity or gas supplied by a utility unless the utility elects in writing to be bound by it for the specified period.

If a utility makes such an election—

A special utility scheme may—

The Commissioners may by regulations make further provision with respect to special utility schemes, including (in particular) provision amending this paragraph.

This paragraph applies to supplies that are not of either of the descriptions mentioned in paragraphs (a) and (b) of paragraph 26(1) (electricity and gas in a gaseous state).

The general rules as to when such supplies are taken to be made are, in cases where the supply is made by a person resident in the United Kingdom, as follows—

These general rules are subject to—paragraph 31 (earlier invoice), paragraph 32 (later invoice), paragraph 34 (deemed supplies), and paragraph 36 (directions by Commissioners).

If before the time applicable under paragraph 30(2) the person making the supply—the supply is treated, to the extent that it is covered by the invoice or payment, as taking place when the invoice is issued or the payment is received.

Sub-paragraph (1) does not apply where the commodity (being sent or taken on approval or sale or return or similar terms) is removed before it is known whether a supply will take place.

Sub-paragraph (1) applies subject to any direction under paragraph 35(3).

If within 14 days after the time applicable under paragraph 30(2) the person making the supply issues an invoice in respect of it, the supply is treated as taking place at the time the invoice is issued.

This does not apply—

The Commissioners may, at the request of a person liable to account for any levy charged on any supplies, direct that sub-paragraph (1) shall apply—with the substitution for the period of 14 days of such longer period as may be specified in the direction.

Sub-paragraphs (1) to (3) apply subject to any direction under paragraph 35.

This paragraph applies to supplies that—

The supply is treated as taking place—

Sub-paragraph (2) applies subject to—

If within 14 days after the time applicable under sub-paragraph (2) the person to whom the supply is made elects in writing for the supply to be treated as taking place at the time the election is made, the supply is treated as taking place at the time the election is made.

This paragraph applies to supplies that—

A supply that is deemed to be made under paragraph 23 is treated as taking place when the commodity is burned ....

A supply that is deemed to be made under paragraph 24 is treated as taking place upon the occurrence of the change in circumstances or intentions or, as the case may be, upon the later determination.

A supply that is deemed to be made under paragraph 43B is treated as taking place upon the later determination.

This paragraph applies to supplies that are not of either of the descriptions mentioned in paragraphs (a) and (b) of paragraph 26(1) (electricity and gas in a gaseous state).

The Commissioners may, at the request of the person liable to account for any levy charged on any supplies to which this paragraph applies, make a direction under sub-paragraph (3) or (4) altering the time at which those supplies (or such of those supplies as may be specified in the direction) are to be treated as taking place.

The Commissioners may direct that the supplies shall be treated as taking place—provided the resulting times or dates are in every case earlier than would otherwise apply.

The Commissioners may direct that the supplies shall be treated as taking place—

A direction under sub-paragraph (4) shall not apply to the extent that the time when the supplies in question are made is determined by paragraph 31(1).

This paragraph applies where—

A fair apportionment shall be made to determine the quantity of the taxable commodities covered by the invoice or payment that will not be, or was not, burned (or consumed) before 1st April 2001.

Where this paragraph applies, a supply is treated as taking place on 1st April 2001. That supply is a supply of the quantity of the taxable commodities that is mentioned in, and determined under, sub-paragraph (2).

For the purposes of this paragraph advance invoicing or payment is “acceptable normal practice” if—

Nothing in paragraph 27 requires a climate change levy accounting document to be issued to cover any commodities that are supplied by a supply that, under sub-paragraph (3), is treated as made on 1st April 2001.

This paragraph applies to invoices issued, and payments received, before the passing of this Act (as well as to those issued or received after its passing).

This paragraph applies in the case of a supply of electricity, or of gas that is in a gaseous state and is of a kind supplied by a gas utility, affected by—

For the purposes of this paragraph a supply is affected by a change if the electricity or gas of which it is a supply (“the supplied commodity”) is actually supplied partly before the change and partly after. However, this paragraph does not apply in the case of a supply that, under paragraph 36(3), is treated as made on 1st April 2001.

If the person liable to account for any levy on the supply so elects—shall be determined in accordance with sub-paragraph (5) or (6).

An election for determination in accordance with sub-paragraph (6) may be made only where—

Where the election is for determination in accordance with this sub-paragraph, the rules are—

Treat the fraction of the supplied commodity actually supplied before the change (“the pre-change fraction”) as supplied by a supply made before the change and treat the fraction of the supplied commodity actually supplied after the change (“the post-change fraction”) as supplied by a supply made after the change.

Where the pre-change and post-change fractions are not known (because, for example, there are no relevant meter readings available)—“the pre-change fraction" is calculated by dividing—

If use of the fractions given by rule B would produce an inequitable result, the pre-change and post-change fractions may be derived from a reasonable estimate of the fractions of the supplied commodity actually supplied before and after the change.

Where the election is for determination in accordance with this sub-paragraph, treat the change as taking place immediately after the time at which the last of the supplied commodity was actually supplied.

This paragraph applies where there is—

Where—the rate at which levy is chargeable on the supply, or any question whether it is a taxable supply, shall, if the person liable to account for any levy on the supply so elects, be determined without regard to the special provisions.

In this paragraph “special provisions” means the provisions of paragraphs 31, 32, 33(4) and 35.

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

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

The Commissioners may make provision by regulations as to the time at which a supply is to be treated as taking place—

In any such case as is mentioned in sub-paragraph (1) the regulations may provide that a taxable commodity shall be treated as separately and successively supplied at prescribed times or intervals.

Paragraphs 26 to 36 (main rules as to time of supply) and 38A have effect subject to any regulations under this paragraph.

The power to make regulations under this paragraph includes power to provide for specified provisions of the regulations to be treated as special provisions for the purposes of paragraph 38 (supplies spanning change of rate etc.).

The person liable to account for the levy charged on a taxable supply is, except in a case where sub-paragraph (2) or (3) applies, the person making the supply.

In the case of a taxable supply made by a person who—the person liable to account for the levy charged on the supply is the person to whom the supply is made.

In the case of levy charged on a taxable supply under paragraph 45B, the person liable to account for the levy is the operator of the facility to which the supply was made.

The Commissioners may by regulations make provision—

Without prejudice to the generality of the powers conferred by sub-paragraph (1), regulations under this paragraph may contain provision—

Paragraph 91(5) provides for the application of Part 7 of this Schedule (recovery and interest) in relation to cases where, by virtue of regulations under sub-paragraph (1)(a)(ii) above or by virtue of paragraph 45B(8), a person is liable to account for levy otherwise than by reference to accounting periods.

Regulations under this paragraph may provide for the application of any provision of this Schedule in relation to such cases.

Subject to the following provisions of this paragraph, if any person (“the taxpayer”) fails—he shall be liable to a penalty of £250.

Liability to a penalty under sub-paragraph (3) shall not arise if the taxpayer satisfies the Commissioners or, on appeal, an appeal tribunal—

Where, by reason of any failure falling within paragraph (a) or (b) of sub-paragraph (3)—that person shall not, by reason of that failure, be liable also to a penalty under that sub-paragraph (3).

The amount payable by way of levy on a taxable supply is—

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

Sub-paragraph (1) is subject to paragraph 45B.

Sub-paragraph (1) does not apply to a deemed supply under paragraph 24A or 24B.

The levy payable on a fraction of a quantity of a commodity is that fraction of the levy payable on that quantity of the commodity.

If a reduced-rate supply is part of an aid scheme within Article 25 of Commission Regulation(EC) No. 800/2008, sub-paragraph (4) cites the title and publication reference of that Regulation for the purpose of complying with Article 3(1) of that Regulation.

That citation is Commission Regulation(EC) No. 800/2008 of 6 August 2008 declaring certain categories of aid compatible with the common market in application of Articles 87 and 88 of the Treaty (General block exemption Regulation) (O.J. 2008 No. L214/3) (with the reference to Articles 87 and 88 being read, as a result of the Treaty of Lisbon, as a reference to Articles 107 and 108 of the Treaty on the Functioning of the European Union).

This paragraph applies to a deemed supply under paragraph 24A or 24B.

The amount payable by way of levy on the deemed supply is the amount ascertained by applying the relevant carbon price support rate; and the levy payable on a fraction of a kilowatt hour, kilogram or gigajoule is that fraction of the levy payable on a kilowatt hour, kilogram or gigajoule.

The carbon price support rates are as follows.

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

This paragraph applies for the purposes of paragraph 42A(2) if the commodity deemed to be supplied is a quantity of a commodity falling within paragraph 3(1)(d) to (f).

The number of gigajoules in the quantity supplied is to be determined by reference to the total gross calorific value of that quantity.

Sub-paragraph (4) applies if there is included in that quantity any coal slurry taken from a slurry pit situated at the site of a coal mine (including a disused coal mine).

The gross calorific value of the coal slurry is to be left out of account in determining the total gross calorific value of that quantity.

Sub-paragraph (2) applies for the purposes of paragraph 42A(2) if, in the calendar year in which the deemed supply is treated as taking place, carbon capture and storage technology is operated in relation to carbon dioxide generated by the station in question in producing electricity.

In relation to the deemed supply, only C% of the relevant carbon price support rate is to be applied (instead of the full rate).

“C%” is 100% minus the station's carbon capture percentage for the calendar year.

The station's “carbon capture percentage” for the calendar year is the percentage of the station's generated carbon dioxide for that year which, through the operation of the carbon capture and storage technology, is—

The station's “generated carbon dioxide” for the calendar year is the amount of carbon dioxide generated in the year by the station from the use of carbon price support rate commodities in producing electricity.

In this paragraph “carbon capture and storage technology” and “carbon dioxide” have the meaning given by section 7(3) and (4) of the Energy Act 2010.

Sub-paragraph (8) applies for the purposes of sub-paragraph (4) in relation to any carbon dioxide if—Section 1122 of the Corporation Tax Act 2010 (“connected” persons) applies for the purposes of paragraph (b).

The carbon dioxide is to be treated as if it had been disposed of by way of permanent storage.

If the percentage mentioned in sub-paragraph (4) is not a whole number, it is to be rounded to the nearest whole number (taking 0.5% as nearest to the next whole number).

This paragraph applies if—

For the purposes of this Schedule—

This paragraph applies where—

For the purposes of this Schedule—

This paragraph does not apply where a supply is treated as not being a reduced-rate supply by virtue of paragraph 45B.

For the purposes of this Schedule, a taxable supply is a reduced-rate supply if—

Sub-paragraph (1) has effect subject to sub-paragraphs (2A) to (2D) and paragraphs 45 and 45B.

The Administrator may—

A taxable supply of a taxable commodity to a facility is not a reduced-rate supply if, at the time of the supply, the commodity falls within a description that is specified (by virtue of sub-paragraph (2A)(a) or (b)) in the certificate relating to the facility.

The Administrator may only include provision in a certificate by virtue of sub-paragraph (2A)(a) or (b)—

That case is where the result is required to be compatible with the common market by virtue of relevant separation agreement law (as defined in section 7C(3) of the European Union (Withdrawal) Act 2018).