b

emptying of any cesspools, septic tanks or similar receptacles which areused otherwise than in connection with the carrying on in the course of abusiness of a relevant industrial activity.

Note: “Relevant industrial activity” means any activity describedin any of Divisions 1 to 5 of the 1980 edition of the publication prepared bythe Central Statistical Office and known as the Standard IndustrialClassification.

Group 7–Fuel and Power for Domestic or Charity Use

Item No.

1

Supplies for qualifying use of—

a

coal, coke or other solid substances held out for sale solely as fuel;

b

coal gas, water gas, producer gases or similar gases;

c

petroleum gases, or other gaseous hydrocarbons, whether in a gaseous orliquid state;

d

fuel oil, gas oil or kerosene; or

e

electricity, heat or air-conditioning.

Notes:

1

“Qualifying use” means—

a

domestic use; or

b

use by a charity otherwise than in the course or furtherance of abusiness.

2

The following supplies are always for domestic use—

a

a supply of not more than one tonne of coal or coke held out for sale asdomestic fuel;

b

a supply of wood, peat or charcoal not intended for sale by the recipient;

c

a supply to a person at any premises of piped gas (that is, gas withinparagraph (b) of item 1, or petroleum gas in a gaseous state, provided throughpipes) where the gas (together with any other piped gas provided to him at thepremises by the same supplier) was not provided at a rate exceeding 150 thermsa month;

d

a supply of petroleum gas in a liquid state where the gas is supplied incylinders the net weight of each of which is less than 50 kilogrammes andeither the number of cylinders supplied is 20 or fewer or the gas is notintended for sale by the recipient;

e

a supply of petroleum gas in a liquid state, otherwise than in cylinders,to a person at any premises at which he is not able to store more than twotonnes of such gas;

f

a supply of not more than 2,300 litres of fuel oil, gas oil or kerosene;

g

a supply of electricity to a person at any premises where the electricity(together with any other electricity provided to him at the premises by thesame supplier) was not provided at a rate exceeding 1000 kilowatt hours amonth.

3

Supplies not within Note (2) are for domestic use if and only if the goodssupplied are for use in—

a

a building, or part of a building, which consists of a dwelling or numberof dwellings;

b

a building, or part of a building, used for a relevant residentialpurpose;

c

self-catering holiday accommodation;

d

a caravan; or

e

a houseboat.

4

Use for a relevant residential purpose means use as—

a

a home or other institution providing residential accommodation forchildren;

b

a home or other institution providing residential accommodation withpersonal care for persons in need of personal care by reason of old age,disablement, past or present dependence on alcohol or drugs or past or presentmental disorder;

c

a hospice;

d

residential accommodation for students or school pupils;

e

residential accommodation for members of any of the armed forces;

f

a monastery, nunnery or similar establishment; or

g

an institution which is the sole or main residence of at least 90 percent. of its residents,

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

5

Self-catering holiday accommodation includes any accommodation advertisedor held out as such.

6

“Houseboat” means a boat or other floating decked structuredesigned or adapted for use solely as a place of permanent habitation and nothaving means of, or capable of being readily adapted for, self-propulsion.

7

Where there is a supply of goods partly for qualifying use and partlynot—

a

if at least 60 per cent. of the goods are supplied for qualifying use, thewhole supply shall be treated as a supply for qualifying use; and

b

in any other case, an apportionment shall be made to determine the extentto which the supply is a supply for qualifying use.

8

Paragraph (a) of item 1 shall be deemed to include combustible materialsput up for sale for kindling fires but shall not include matches upon whicha duty of customs or excise has been or is to be charged.

9

Paragraphs (b) and (c) of item 1 do not include any road fuel gas (withinthe meaning of the Hydrocarbon Oil Duties Act 1979) onwhich a duty of excise has been charged or is chargeable.

10

Paragraph (d) of item 1 does not include hydrocarbon oil on which a dutyof excise has been or is to be charged without relief from, or rebate of, suchduty by virtue of the provisions of the Hydrocarbon Oil Duties Act 1979.

11

“Fuel oil” means heavy oil which contains in solution anamount of asphaltenes of not less than 0.5 per cent. or which contains lessthan 0.5 per cent. but not less than 0.1 per cent. of asphaltenes and has aclosed flash point not exceeding 150°C.

12

“Gas oil” means heavy oil of which not more than 50 per cent.by volume distils at a temperature not exceeding 240°C and of which morethan 50 per cent. by volume distils at a temperature not exceeding 340°C.

13

“Kerosene” means heavy oil of which more than 50 per cent.by volume distils at a temperature not exceeding 240°C.

14

“Heavy oil” shall have the same meaning as in the HydrocarbonOil Duties Act 1979.

13A Incorrect certificates as to zero-rating etc.

1

Subject to subsections (3) and (4) below, where—

a

a person to whom one or more supplies are, or are to be, made gives to thesupplier—

i

a certificate that the supply or supplies fall, or will fall, wholly orpartly within Group 7, 8 or 8A of Schedule 5, or Group 1 of Schedule 6, to theprincipal Act; or

ii

a certificate such as is mentioned in paragraph 13(4)(f) of Schedule 3 tothe Finance Act 1989 relating to the supply or supplies; and

b

the certificate is incorrect,

the person giving the certificate shall be liable to a penalty.

2

The amount of the penalty shall be equal to the difference between theamount of the tax which would have been chargeable on the supply or suppliesif the certificate had been correct and the amount of tax actually sochargeable.

3

The giving of a certificate shall not give rise to a penalty under thissection if the person who gave it satisfies the Commissioners or, on appeal,a value added tax tribunal that there is a reasonable excuse for his havinggiven it.

4

Where by reason of giving a certificate a person is convicted of anoffence (whether under the principal Act or otherwise), the giving of thecertificate shall not also give rise to a penalty under this section.

s

a claim for the repayment of an amount under section 24 of the Finance Act1989 (recovery of overpaid tax).

b

with respect to the making of entries in accounts for the purpose ofmaking adjustments, whether for the correction of errors or otherwise; and

c

for the making of financial adjustments in connection with the making ofentries in accounts for the purpose mentioned in paragraph (b) above.

1A

Regulations under sub-paragraph (1) above may make different provision fordifferent cases and may be framed by reference to such records as may bespecified in any notice published by the Commissioners in pursuance of theregulations and not withdrawn by a further notice.