Finance Act 2016

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Amendment of Chapter 3 of Part 3 of Finance Act 2010 (solid fuel carbon tax)

42. (1) Section 82 of the Finance Act 2010 is amended—

(a) in subsection (1) —

(i) in paragraph (a), by substituting “electricity,” for “electricity, or”,

(ii) in paragraph (b), by substituting “processes,” for “processes, or”,

(iii) in paragraph (c), by substituting “State, or” for “State.”, and

(iv) by inserting the following paragraph after paragraph (c):

“(d) for heat and power cogeneration (other than heat and power cogeneration by a micro-cogeneration unit within the meaning of Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012¹⁴ ), where it is determined, by a competent authority designated for the purpose by the Minister for Finance, that such cogeneration meets the requirements for high-efficiency cogeneration under Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012.”,

(b) by inserting the following subsection after subsection (1):

“(1A) The relief under subsection (1)(d) shall be calculated as the amount of tax paid on that portion of the solid fuel used for cogeneration that is used to generate high-efficiency electricity as determined, and set out in a certificate issued, by the competent authority.”,

and

(c) by substituting the following subsection for subsection (2):

“(2) Subject to such conditions as the Commissioners may prescribe or otherwise impose, a partial relief from tax shall be granted on any solid fuel that is shown to the satisfaction of the Commissioners to have been supplied for use in an installation that is covered by a greenhouse gas emissions permit.”.

(2) Section 83 is amended—

(a) by substituting the following subsection for subsection (2):

“(2) (a) A claim for repayment in relation to relief under paragraphs (a), (b) and (c) of section 82(1) or under section 82(2) shall be made in such form as the Commissioners may direct and shall be in respect of solid fuel delivered within a period of not less than one and not more than 6 calendar months.

(b) Except where the Commissioners may in any particular case allow, a claim for repayment referred to in paragraph (a) shall be made within 6 calendar months of the end of the period in respect of which the claim is made.”,

and

(b) by inserting the following subsection after subsection (2):

“(3) (a) A claim for repayment in relation to relief under paragraph (d) of section 82(1) shall be made in such form as the Commissioners may direct and shall be in respect of solid fuel which has been—

(i) delivered within a period of not less than one and not more than 12 calendar months, and

(ii) determined to have been used to generate high-efficiency electricity by the competent authority.

(b) Except where the Commissioners may in any particular case allow, a claim for repayment referred to in paragraph (a) shall be made within 6 calendar months of the date upon which the competent authority has issued the certificate referred to in subsection (1A).”.

(3) This section shall come into operation on such day as the Minister for Finance may by order appoint.

¹⁴OJ No. L315, 14.11.2012, p.1