Explanatory note

These Regulations amend the Climate Change Levy (General) Regulations 2001 (“the General Regulations”) (S.I. 2001/838).

They replace the formula in paragraph 2(2) of Schedule 3 to the General Regulations so that fuels used in a combined heat and power station to produce mechanical outputs of the station are not treated as being referable to the production of electricity and are therefore not subject to the carbon price support rates of climate change levy. They also make consequential amendments to paragraphs 1, 4 and 5 of that Schedule.

A Tax Information and Impact Note has not been prepared for this instrument as it contains no substantive changes to tax policy.