Finance Act 2000

Offence of fraudulent evasion of income tax

Rate.

International exchange of information: inheritance tax.

Debt Management Account.

R&D tax relief or tax credit only available where company is a going concern

18A

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

De-grouping charge: deferral until company leaves new group

Offer of review

121A

• (1) HMRC must offer a person (P) a review of a decision that has been notified to P if an appeal lies under paragraph 121 in respect of the decision.

• (2) The offer of the review must be made by notice given to P at the same time as the decision is notified to P.

• (3) This paragraph does not apply to the notification of the conclusions of a review.

Right to require review

121B

• (1) Any person (other than P) who has the right of appeal under paragraph 121 against a decision may require HMRC to review that decision if that person has not appealed to the appeal tribunal under paragraph 121G.

• (2) A notification that such a person requires a review must be made within 30 days of that person becoming aware of the decision.

Review by HMRC

121C

• (1) HMRC must review a decision if—

• (a) they have offered a review of the decision under paragraph 121A, and

• (b) P notifies HMRC accepting the offer within 30 days from the date of the document containing the notification of the offer.

• (2) But P may not notify acceptance of the offer if P has already appealed to the appeal tribunal under paragraph 121G.

• (3) HMRC must review a decision if a person other than P notifies them under paragraph 121B.

• (4) HMRC shall not review a decision if P, or another person, has appealed to the appeal tribunal under paragraph 121G in respect of the decision.

Extensions of time

121D

• (1) If under paragraph 121A, HMRC have offered P a review of a decision, HMRC may within the relevant period notify P that the relevant period is extended.

• (2) If under paragraph 121B another person may require HMRC to review a matter, HMRC may within the relevant period notify the other person that the relevant period is extended.

• (3) If notice is given the relevant period is extended to the end of 30 days from—

• (a) the date of the notice, or

• (b) any other date set out in the notice or a further notice.

• (4) In this paragraph “relevant period” means—

• (a) the period of 30 days referred to in—

• (i) paragraph 121C(1)(b) (in a case falling within sub-paragraph (1)), or

• (ii) paragraph 121B(2) (in a case falling within sub-paragraph (2)), or

• (b) if notice has been given under sub-paragraph (1) or (2), that period as extended (or as most recently extended) in accordance with sub-paragraph (3).

Review out of time

121E

• (1) This paragraph applies if—

• (a) HMRC have offered a review of a decision under paragraph 121A and P does not accept the offer within the time allowed under paragraph 121C(1)(b) or 121D(3); or

• (b) a person who requires a review under paragraph 121B does not notify HMRC within the time allowed under that paragraph or paragraph 121D(3).

• (2) HMRC must review the decision under paragraph 121C if—

• (a) after the time allowed, P, or the other person, notifies HMRC in writing requesting a review out of time,

• (b) HMRC are satisfied that P, or the other person, had a reasonable excuse for not accepting the offer or requiring review within the time allowed, and

• (c) HMRC are satisfied that P, or the other person, made the request without unreasonable delay after the excuse had ceased to apply.

• (3) HMRC shall not review a decision if P, or another person, has appealed to the appeal tribunal under paragraph 121G in respect of the decision.

Nature of review etc

121F

• (1) This paragraph applies if HMRC are required to undertake a review under paragraph 121C or 121E.

• (2) The nature and extent of the review are to be such as appear appropriate to HMRC in the circumstances.

• (3) For the purpose of sub-paragraph (2), HMRC must, in particular, have regard to steps taken before the beginning of the review—

• (a) by HMRC in reaching the decision, and

• (b) by any person in seeking to resolve disagreement about the decision.

• (4) The review must take account of any representations made by P, or the other person, at a stage which gives HMRC a reasonable opportunity to consider them.

• (5) The review may conclude that the decision is to be—

• (a) upheld,

• (b) varied, or

• (c) cancelled.

• (6) HMRC must give P, or the other person, notice of the conclusions of the review and their reasoning within—

• (a) a period of 45 days beginning with the relevant date, or

• (b) such other period as HMRC and P, or the other person, may agree.

• (7) In sub-paragraph (6) “relevant date” means—

• (a) the date HMRC received P’s notification accepting the offer of a review (in a case falling within paragraph 121A), or

• (b) the date HMRC received notification from another person requiring review (in a case falling within paragraph 121B), or

• (c) the date on which HMRC decided to undertake the review (in a case falling within paragraph 121E).

• (8) Where HMRC are required to undertake a review but do not give notice of the conclusions within the time period specified in sub-paragraph (6), the review is to be treated as having concluded that the decision is upheld.

• (9) If sub-paragraph (8) applies, HMRC must notify P, or the other person of the conclusion which the review is treated as having reached.

Bringing of appeals

121G

• (1) An appeal under paragraph 121 is to be made to the appeal tribunal before—

• (a) the end of the period of 30 days beginning with—

• (i) in a case where P is the appellant, the date of the document notifying the decision to which the appeal relates, or

• (ii) in a case where a person other than P is the appellant, the date that person becomes aware of the decision, or

• (b) if later, the end of the relevant period (within the meaning of paragraph 121D).

• (2) But that is subject to sub-paragraphs (3) to (5).

• (3) In a case where HMRC are required to undertake a review under paragraph 121C—

• (a) an appeal may not be made until the conclusion date, and

• (b) any appeal is to be made within the period of 30 days beginning with the conclusion date.

• (4) In a case where HMRC are requested to undertake a review by virtue of paragraph 121E—

• (a) an appeal may not be made to an appeal tribunal—

• (i) unless HMRC have notified P, or the other person, as to whether or not a review will be undertaken, and

• (ii) if HMRC have notified P, or the other person, that a review will be undertaken, until the conclusion date;

• (b) any appeal where paragraph (a)(ii) applies is to be made within the period of 30 days beginning with the conclusion date;

• (c) if HMRC have notified P, or the other person, that a review will not be undertaken, an appeal may be made only if the appeal tribunal gives permission to do so.

• (5) In a case where paragraph 121F(8) applies, an appeal may be made at any time from the end of the period specified in paragraph 121F(6) to the date 30 days after the conclusion date.

• (6) An appeal may be made after the end of the period specified in sub-paragraph (1), (3)(b), (4)(b) or (5) if the appeal tribunal gives permission to do so.

• (7) In this paragraph “conclusion date” means the date of the document notifying the conclusions of the review.

Deduction for contribution to plan trust

Reimbursed expenses

De-grouping charge: deferral until company leaves new group

Deduction for contribution to plan trust

Reimbursed expenses

De-grouping charge: deferral until company leaves new group

Increase in general rate.

Climate change levy.

Phasing out of relief for payments to trustees of profit sharing schemes.

Millennium gift aid.

Gifts to charity from certain trusts.

Approved profit sharing scheme: other awards of shares.

Disposal of interest in settled property: deemed disposal of underlying assets.

Transfer of property between associated companies: Northern Ireland.

Surrender of leases.

Treatment of employee share ownership trusts.

Secondary liability.

Removal of reduced rate where targets set by climate change agreement not met

45B

• (1) This paragraph applies where, by virtue of such a certificate as is mentioned in paragraph 44(1), a facility is to be taken as being covered by a climate change agreement for a period specified in that certificate (“the certification period”).

• (2) If it appears to the Administrator that the progress made in the certification period towards meeting targets set for the facility by the agreement has been such as under the provisions of the agreement is unsatisfactory, the Administrator may issue a certificate under this paragraph.

• (3) The certificate must (in addition to specifying the facility, agreement and certification period to which it applies) specify—

• (a) T, that is, the value (expressed in terms of a reduction in tonnes of carbon dioxide equivalent) of achieving the targets set for the facility by the agreement, and

• (b) P, that is, the value (expressed in the same terms) of the progress made by the facility, during the certification period, towards meeting those targets.

• (4) Where a certificate has been issued under this paragraph—

• (a) each taxable supply made to the facility at any time falling within the certification period is to be treated as not being a reduced-rate supply, and

• (b) accordingly, an amount (determined in accordance with sub-paragraph (5)) is payable by way of levy on that taxable supply.

• (5) The amount payable under this paragraph on a taxable supply is—

$$T-PT×0.8R$where—T and P have the values mentioned in sub-paragraph (3), andR is the amount which would have been payable by way of levy on the supply (had it not been a reduced-rate supply) at the time that it was made, in accordance with paragraph 42(1)(a).$

• (6) The Administrator must send the certificate to—

• (a) the Commissioners, and

• (b) the person who is the operator of the facility.

• (7) A certificate under this paragraph may be issued after the certification period ends.

• (8) A person liable to account for levy under this paragraph—

• (a) is liable to account for it otherwise than by reference to an accounting period, and

• (b) must not (by virtue of regulations under paragraph 41) become liable to pay it as from a date before the date on which the certificate under this paragraph is issued.

• (9) Levy due under this paragraph is payable in addition to any levy already payable on any supply made in the certification period.

• (10) In this paragraph—

• “certification period”, in a case where the certificate referred to in sub-paragraph (1) has been varied under paragraph 45, means the period for which that certificate has effect as varied;

• “tonne of carbon dioxide equivalent” has the meaning given in the Climate Change Act 2008.

Treatment of mileage allowances

Benefits in kind: deregulatory amendments.

Secondary liability.

International exchange of information: inheritance tax.

Debt Management Account.

De-grouping charge: deferral until company leaves new group

Approved profit sharing schemes: restriction on type of shares.

Exemption of payments under New Deal 50plus.

Loan capital where return bears inverse relationship to results.

Offence of fraudulent evasion of income tax

Reimbursed expenses

De-grouping charge: deferral until company leaves new group

Transfer of property between associated companies: Northern Ireland.

Treatment of employee share ownership trusts.

Secondary liability.

Debt Management Account.

...

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Supplies for use in scrap metal recycling and reduced-rate supplies: deemed supply

43B

• (1) This paragraph applies where—

• (a) a taxable supply (“the original supply”) has been made to any person (“the recipient”),

• (b) the original supply was made on the basis that it was, to any extent—

• (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (ii) a reduced-rate supply of electricity, or

• (iii) a reduced-rate supply of any other taxable commodity,

• (c) it is later determined that the original supply was (or was to some extent) a different kind of supply, and

• (d) the amount payable on the supply on the basis mentioned in paragraph (b) is less than the amount payable on the supply on the basis of the later determination.

• (2) For the purposes of this Schedule—

• (a) the recipient is deemed to make a taxable supply to itself of the taxable commodity, and

• (b) the amount payable by way of levy on that deemed supply is—

• (i) the amount payable on the original supply on the basis of the later determination mentioned in sub-paragraph (1)(c), less

• (ii) the amount payable on the original supply on the basis mentioned in sub-paragraph (1)(b).

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

The Administrator etc

52A

• (1) In this Part of this Schedule references to “the Administrator” are to the body appointed as such by regulations made by the Secretary of State.

• (2) The body appointed must be a body established by an enactment (as defined in section 97 of the Climate Change Act 2008).

• (3) Different bodies may be appointed in relation to facilities in different parts of the United Kingdom.

52B

• (1) The Administrator is responsible for administering the scheme set out in paragraphs 44 to 52.

• (2) This covers (in particular) the administration of climate change agreements.

• (3) In this Part of this Schedule “administrative function” means—

• (a) the Administrator's function imposed by sub-paragraph (1), or

• (b) any other power or duty of the Administrator conferred or imposed by or under a provision of this Part of this Schedule.

52C

• (1) The Administrator may require persons falling within sub-paragraph (2) to pay to the Administrator such charges as may from time to time be specified to cover any costs incurred by the Administrator in carrying out any administrative function.

• (2) The persons falling within this sub-paragraph are parties or potential or former parties to agreements falling within paragraph 47 or to umbrella or underlying agreements within the meaning of paragraph 48.

• (3) In sub-paragraph (1) “specified” means specified in, or determined in accordance with, a scheme made by the Administrator for the purposes of this paragraph.

• (4) A scheme may provide for the times at which, and the manner in which, charges are to be paid.

• (5) Paragraph 146(7) applies in relation to the Administrator's power to make a scheme under this paragraph as it applies in relation to a power to make regulations under this Schedule.

• (6) A scheme may revoke or vary any previous scheme.

• (7) A scheme may be made only with the consent of the Secretary of State.

• (8) Charges received by the Administrator must be paid to the Secretary of State who must pay them into the Consolidated Fund.

• (9) Sub-paragraph (8) does not apply if the Administrator is the Environment Agency.

52D

• (1) The Secretary of State may by regulations make provision about the administration of the scheme set out in paragraphs 44 to 52.

• (2) Sub-paragraph (1) covers (in particular)—

• (a) provision about climate change agreements, and

• (b) provision about how the Administrator is to carry out any administrative function.

• (3) Without prejudice to the generality of sub-paragraphs (1) and (2), regulations may contain any provision falling within paragraph 52E or 52F.

• (4) Regulations may—

• (a) require the Administrator to obtain the Secretary of State's consent to any course of action,

• (b) confer or impose other powers or duties on the Secretary of State or the Administrator, or

• (c) confer or impose powers or duties on other persons.

• (5) The Secretary of State may give directions to the Administrator about how the Administrator is to carry out any administrative function (and this power to give directions includes power to vary or revoke directions previously given).

• (6) The Secretary of State may issue guidance to the Administrator about how the Administrator is to carry out any administrative function; and the Administrator must have regard to any guidance issued.

52E

• (1) Regulations may—

• (a) specify terms which must be included in agreements falling within paragraph 47 or in umbrella or underlying agreements within the meaning of paragraph 48, and

• (b) confer power on the Administrator to vary such agreements to take account of any changes in the terms specified under paragraph (a) from time to time.

• (2) The terms which may be specified under sub-paragraph (1)(a) include (in particular) terms falling within paragraph 49(4) under which the absence (or partial absence) of any progress towards meeting any targets for a facility may be made up for by the payment to the Administrator of a sum specified in, or determined in accordance with, the regulations.

• (3) Sums received by the Administrator must be paid to the Secretary of State who must pay them into the Consolidated Fund.

52F

• (1) Regulations may confer power on the Administrator—

• (a) to impose a financial penalty of a specified amount on a person who, as a representative of a facility to which a climate change agreement applies, contravenes a term of the agreement, and

• (b) to terminate, with effect from a specified date, the agreement so far as it applies to the facility if—

• (i) the financial penalty is not paid to the Administrator within a specified period, or

• (ii) the contravention is not remedied to the Administrator's satisfaction within a specified period.

• (2) Regulations may also confer power on the Administrator to terminate, with effect from a specified date and without first imposing a financial penalty, a climate change agreement so far as it applies to a facility if there is a contravention of the agreement by a person who is a representative of the facility.

• (3) Neither sub-paragraph (1)(a) nor sub-paragraph (2) covers a failure to meet, or to make progress towards meeting, any targets set for a facility under a climate change agreement.

• (4) If regulations falling within sub-paragraph (1) or (2) are made, the regulations must also—

• (a) confer rights of appeal against a decision taken by the Administrator to impose a financial penalty or to terminate a climate change agreement (as the case may be), and

• (b) specify the court, tribunal or person who is to hear and determine the appeal.

• (5) The Secretary of State may be specified for the purposes of sub-paragraph (4)(b).

• (6) Penalties received by the Administrator must be paid to the Secretary of State who must pay them into the Consolidated Fund.

• (7) Regulations may confer power on the Administrator to terminate, with effect from a specified date, a climate change agreement so far as it applies to a facility in specified circumstances not involving a contravention of the agreement.

• (8) In sub-paragraphs (1) to (7)—

• “representative” has the meaning given by paragraph 47(2), and

• “specified” means specified in, or determined in accordance with, the regulations.

• (9) Sub-paragraph (10) or (11) (as the case may be) applies if a climate change agreement is terminated in respect of a facility before the start of, or during, a period specified for the facility in such a certificate as is mentioned in paragraph 44(1).

• (10) If the termination is before the start of the specified period, the Administrator must, in respect of the facility, give a variation certificate within paragraph 45(1)(a) in relation to the specified period.

• (11) If the termination is during the specified period, the Administrator must, in respect of the facility, give a variation certificate within paragraph 45(1)(b) in relation to the specified period specifying the day of the termination.

Deduction for contribution to plan trust

Reimbursed expenses

79A

• (1) This paragraph applies if—

• (a) a balancing charge under this Part of this Schedule arises to the company on the disposal of any plant or machinery, and

• (b) the plant or machinery is taken into account in calculating income that the company is treated as receiving under section 383 or 417 of the Corporation Tax Act 2010 (sales of lessors) as a result of section 394ZA of that Act (company joining tonnage tax group).

• (2) The balancing charge is to be reduced by the relevant part of the sales of lessors expense so far as relief has not previously been given for that expense (whether under this sub-paragraph or otherwise).

• (3) “The sales of lessors expense” means—

• (a) the expense which the company is treated as incurring under section 383 or 417 of the Corporation Tax Act 2010 as a result of section 394ZA of that Act, or

• (b) if section 386 or 419 of that Act applies or has applied, the expense which derives from the expense within paragraph (a).

• (4) If the sales of lessors expense is incurred at a time when the company is in tonnage tax, the “relevant part” of that expense is so much of it as, on a just and reasonable basis, is attributable to the matters set out in paragraph 56(1)(a) or (b).

• (5) If—

• (a) the sales of lessors expense is not incurred at a time when the company is in tonnage tax,

• (b) that expense is taken into account in calculating a loss made by the company in a trade, and

• (c) the loss is one to which paragraph 56 applies,

the “relevant part” of the sales of lessors expense is so much of the apportioned loss as, on a just and reasonable basis, is derived from the sales of lessors expense.

• (6) The reference here to the apportioned loss is to the loss that is attributable to the matters set out in paragraph 56(1)(a) or (b).

De-grouping charge: deferral until company leaves new group

Deemed taxable supply: commodities to be used in producing electricity

24A

• (1) Sub-paragraph (2) applies if—

• (a) a quantity of a carbon price support rate commodity is brought onto, or arrives at, a site in Great Britain at which a generating station is situated,

• (b) that quantity of the commodity is intended to be used for producing electricity in the station,

• (c) the station is neither a fully exempt combined heat and power station nor a partly exempt combined heat and power station, and

• (d) the station is neither a small generating station nor a stand-by generator.

• (2) 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.

• (3) 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.

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

• (a) if the quantity of the commodity is not the subject of an actual supply made to the owner of the station, or

• (b) if the commodity's availability for use in the station is subject to any condition.

Deemed taxable supply: commodities to be used in combined heat and power station

24B

• (1) Sub-paragraph (2) applies if—

• (a) a quantity of a carbon price support rate commodity is brought onto, or arrives at, the CHPQA site of a fully exempt combined heat and power station or a partly exempt combined heat and power station in Great Britain,

• (b) that quantity of the commodity is intended to be used in the station for producing outputs of the station, and

• (c) the station is not a small generating station.

• (2) 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.

• (2A) This sub-paragraph applies to electricity so far as—

• (a) it is included in the CHP Qualifying Power Output of the combined heat and power station's CHPQA scheme, and

• (b) either condition A or B is met.

• (2B) 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.

• (2C) 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.

• (3) 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).

• (4) 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.

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

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

• (a) if the quantity of the commodity is not the subject of an actual supply made to the operator of the station, or

• (b) if the commodity's availability for use in the station is subject to any condition.

• (7) 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.

24C

• (1) This paragraph applies if—

• (a) a determination (“the initial determination”) is made under regulations falling within paragraph 24B(3) that—

• (i) none of a quantity of a carbon price support rate commodity is, or

• (ii) a proportion of such a quantity is not,

referable to the production of electricity to which paragraph 24B(2A) does not apply,

• (b) as a result of the initial determination, the quantity or proportion of a quantity is determined not to be the subject of a deemed supply under paragraph 24B, and

• (c) it is later determined that, contrary to the initial determination, the quantity or proportion of a quantity—

• (i) was referable to the production of electricity to which paragraph 24B(2A) does not apply, and

• (ii) accordingly, should have been determined to be the subject of a deemed supply under paragraph 24B.

• (2) For the purposes of this Schedule—

• (a) the operator of the station in question is deemed to make a taxable supply to himself of the quantity or proportion of a quantity, and

• (b) the amount payable by way of levy on the deemed supply is the amount which would have been payable in relation to the quantity or proportion of a quantity had it been determined to be the subject of a deemed supply as mentioned in sub-paragraph (1)(c)(ii).

Power to make regulations giving effect to paragraphs 24A to 24C etc

24D

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

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

• (a) for determining whether a deemed supply under paragraph 24A or 24B is made;

• (b) for determining the quantity of any commodity which is the subject of such a deemed supply;

• (c) for determining whether paragraph 42C(2) applies in relation to a deemed supply under paragraph 24A or 24B and, if it does, the reduction in the relevant carbon price support rate.

• (3) Regulations under sub-paragraph (1) may include—

• (a) provision in respect of calculations, measurements, data and procedures to be made or used;

• (b) provision that, so far as framed by reference to any document, is framed by reference to that document as from time to time in force.

Deemed supplies under paragraph 24A, 24B, 24C or 42D

38A

• (1) 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).

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

42A

• (1) This paragraph applies to a deemed supply under paragraph 24A or 24B.

• (2) 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.

• (3) The carbon price support rates are as follows.

Carbon price support rate commodity	Carbon price support rate
Any gas in a gaseous state that is of a kind supplied by a gas utility	£0.00331 per kilowatt hour
Any petroleum gas, or other gaseous hydrocarbon, in a liquid state	£0.05280 per kilogram
Any commodity falling within paragraph 3(1)(d) to (f)	£1.54790 per gigajoule

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

42B

• (1) 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).

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

• (3) 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).

• (4) 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.

42C

• (1) 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.

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

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

• (4) 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—

• (a) captured, and

• (b) then disposed of by way of permanent storage.

• (5) 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.

• (6) 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.

• (7) Sub-paragraph (8) applies for the purposes of sub-paragraph (4) in relation to any carbon dioxide if—

• (a) the carbon dioxide is captured but then leaks out and therefore is not disposed of by way of permanent storage, but

• (b) the leak does not occur—

• (i) on the land on which the station is situated,

• (ii) on any other land under the control of the station's owner or a person connected with the station's owner, or

• (iii) from any pipeline or other facility or installation which is operated by the station's owner or a person connected with the station's owner.

Section 1122 of the Corporation Tax Act 2010 (“connected” persons) applies for the purposes of paragraph (b).

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

• (9) 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).

42D

• (1) This paragraph applies if—

• (a) an amount is determined to be payable by way of levy on a deemed supply of a quantity of a commodity under paragraph 24A or 24B, but

• (b) it is later determined that that amount is too low.

• (2) For the purposes of this Schedule—

• (a) the person who made the deemed supply is deemed to make a further taxable supply to himself of the quantity of the commodity, and

• (b) the amount payable by way of levy on that further deemed supply is—

• (i) the total amount payable on the first deemed supply on the basis of the later determination mentioned in sub-paragraph (1)(b), less

• (ii) the amount previously determined to be payable on the first deemed supply.

Meaning of “exempt unlicensed electricity supplier”

152A

• (1) In this Schedule “exempt unlicensed electricity supplier” means a person—

• (a) to whom an exemption from section 4(1)(c) of the Electricity Act 1989 (persons supplying electricity to premises) has been granted by an order under section 5 of that Act, or

• (b) to whom an exemption from Article 8(1)(c) of the Electricity Supply (Northern Ireland) Order 1992 has been granted by an order under Article 9 of that Order,

except where the person is acting otherwise than for purposes connected with the carrying on of activities authorised by the exemption.

• (2) Sub-paragraph (1) applies subject to—

• (a) any direction under paragraph 151(1), and

• (b) any regulations under paragraph 151(2).

Meaning of “small generating station”

152B

• (1) In this Schedule “small generating station” means a generating station the capacity of which for producing electricity is no more than 2 megawatts.

• (2) Sub-paragraph (3) applies if a relevant station (“station X”) is one of a number of relevant stations which—

• (a) are situated in the United Kingdom, and

• (b) are owned by P or persons connected with P.

• (3) In applying sub-paragraph (1) in relation to station X, the reference to the capacity of a generating station is to be read as a reference to the capacity of station X and all the other relevant stations mentioned in sub-paragraph (2) taken together.

• (4) In sub-paragraphs (2) and (3) “relevant station” means a generating station which is neither an exempt CHP station nor a stand-by generator.

• (5) For the purposes of sub-paragraph (2)(b)—

• (a) “P” is the person who owns station X, and

• (b) section 1122 of the Corporation Tax Act 2010 (“connected” persons) applies.

• (6) Sub-paragraph (7) applies if the scheme in relation to which the CHPQA certificate of an exempt CHP station (“station Y”) is issued covers other exempt CHP stations as well.

• (7) In applying sub-paragraph (1) in relation to station Y, the reference to the capacity of a generating station is to be read as a reference to the capacity of station Y and all the other exempt CHP stations mentioned in sub-paragraph (6) taken together.

• (8) In this paragraph “exempt CHP station” means a fully exempt combined heat and power station or a partly exempt combined heat and power station.

Exemption: mineralogical and metallurgical processes

12A

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

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

• (3) “Metallurgical process” means a process of any of the following descriptions.

• (4) The descriptions are—

• (a) a process falling within Division 24 of NACE Rev 2, excluding Class 24.46;

• (b) a process falling within Group 25.5 of NACE Rev 2;

• (c) a process falling within Class 25.61 of NACE Rev 2 which is—

• (i) plating, anodising etc of metals;

• (ii) heat treatment of metals;

• (iii) deburring, sandblasting, tumbling and cleaning of metals where carried out in conjunction with a process mentioned in paragraph (a) or (b).

• (4A) 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).

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

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

Controlled goods agreements

89A

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

Reimbursed expenses

De-grouping charge: deferral until company leaves new group

Civil penalties for breach of excise duty requirements.

Approved profit sharing schemes: restriction on type of shares.

Approved profit sharing schemes: loan arrangements.

Gold: penalty for failure to comply with record-keeping requirements etc.

De-grouping charge: deferral until company leaves new group

Bridging renewal election

15ZA

• (1) A renewal election in respect of a single company or a group is a bridging renewal election if—

• (a) the last tonnage tax election in force in respect of the company or group (“the previous election”) expired (rather than ceasing to be in force for another reason),

• (b) in the period beginning with the expiry of the previous election and ending with the time from which the renewal election would have effect, nothing has happened which, if a tonnage tax election had been force in respect of the company or group, would have caused it to cease to be in force, and

• (c) the renewal election is made with the consent of an officer of Revenue and Customs.

• (2) An officer of Revenue and Customs may not give consent for the purposes of this paragraph unless satisfied that—

• (a) the consent was requested without delay after the company or (as appropriate) a company in the group first became aware that the previous election had expired, and

• (b) the conduct of the company or group in connection with tonnage tax has not at any time involved conduct the main purpose (or one of the main purposes) of which was the avoidance of tax.

• (3) Where a bridging renewal election is made, the previous election is to be treated as having remained in force until the time when the bridging renewal election takes effect.

De-grouping charge: deferral until company leaves new group

Meaning of managing a qualifying ship

18A

A company is regarded for the purposes of this Schedule as managing a qualifying ship if—

• (a) the ship is a qualifying ship operated by a tonnage tax company (“the operator”),

• (b) the company carries on activities in relation to the ship that would be tonnage tax activities of the operator if the operator carried them on, and

• (c) those activities as carried on by the company represent a significant contribution to the operation of the ship.