SCHEDULES

SCHEDULE 42Climate change levy: supplies subject to carbon price support rates etc

PART 2New provision having effect from 1 April 2013

New provision

6

(1)

Paragraph 14 (exemption for supplies to electricity producers) is amended as follows.

(2)

In sub-paragraphs (2)(b) and (3)(b) after “electricity” insert “ in a small generating station ”.

(3)

After sub-paragraph (3) insert—

“(3ZA)

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

(a)

uses the commodity supplied in producing electricity in a stand-by generator, and

(b)

uses the electricity produced otherwise than in exemption-retaining ways.”

(4)

After sub-paragraph (3A) insert—

“(3B)

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).”

(5)

Omit sub-paragraphs (4) and (5).