15(1)A supply of a taxable commodity to a person is exempt from the levy if—(a)[F1that person intends to cause the commodity to be used]the commodity is to be used by that person in—U.K.
(i)a fully exempt combined heat and power station, or
(ii)a partly exempt combined heat and power station,
in producing any outputs of the station, and
(b)the supply is not a supply of electricity that is deemed to be made under paragraph 23(3).
For this purpose “outputs” has the meaning given by paragraph 148(9).
(2)Where—
(a)a supply of a taxable commodity to a person would (apart from this sub-paragraph) be exempted in full by sub-paragraph (1), and
(b)at the time the supply is made, the efficiency percentage for the combined heat and power station in which the commodity is to be used F2... is less than the threshold efficiency percentage for the station,
sub-paragraph (1) only exempts the relevant fraction of the supply.
(3)For the purposes of sub-paragraph (2), the “relevant fraction” of a supply of a taxable commodity that is to be used in a combined heat and power station is the fraction—
(a)whose numerator is the efficiency percentage for the station at the time the supply is made, and
(b)whose denominator is the threshold efficiency percentage for the station at that time.
(4)For the purposes of this paragraph—
(a)the “threshold efficiency percentage" for a combined heat and power station is the percentage set as the threshold efficiency percentage for the station by regulations made by the Treasury;
(b)the “efficiency percentage" for a combined heat and power station is the percentage stated as the efficiency percentage for the station in a certificate in force in respect of the station under paragraph 148 (certificate given by Secretary of State that station is fully or partly exempt).
(5)Paragraph 149 confers power to make provision by regulations for determining the efficiency percentage to be stated in a certificate under paragraph 148.
Textual Amendments
F1Words in Sch. 6 para. 15(1)(a) substituted (11.5.2001 with effect as mentioned in s. 105(7) of the amending Act) by 2001 c. 9, s. 105(6)
F2Words in Sch. 6 para. 15(2)(b) repealed (11.5.2001 with effect as mentioned in s. 105(7) of the amending Act) by 2001 c. 9, ss. 105(7), 110, Sch. 33 Pt. 3(3) Note