# Finance Act 2000, Paragraph 15

Extent: E+W+S+N.I.

(1) A supply of a taxable commodity to a person is exempt from the levy if—
(a) that person intends to cause the commodity to be used in—
(i) a fully exempt combined heat and power station, or
(ii) a partly exempt combined heat and power station,
in producing any outputs of the station, and
(b) the supply is not a supply of electricity that is deemed to be made under paragraph 23(3).
For this purpose “outputs” has the meaning given by paragraph 148(9).
(2) Where—
(a) a supply of a taxable commodity to a person would (apart from this sub-paragraph) be exempted in full by sub-paragraph (1), and
(b) at the time the supply is made, the efficiency percentage for the combined heat and power station in which the commodity is to be used ... is less than the threshold efficiency percentage for the station,
sub-paragraph (1) only exempts the relevant fraction of the supply.
(3) For the purposes of sub-paragraph (2), the “relevant fraction” of a supply of a taxable commodity that is to be used in a combined heat and power station is the fraction—
(a) whose numerator is the efficiency percentage for the station at the time the supply is made, and
(b) whose denominator is the threshold efficiency percentage for the station at that time.
(4) For the purposes of this paragraph—
(a) the “threshold efficiency percentage" for a combined heat and power station is the percentage set as the threshold efficiency percentage for the station by regulations made by the Treasury;
(b) the “efficiency percentage” for a combined heat and power station shall be determined in accordance with regulations under paragraph 149.
(4A) Paragraph 24B makes provision under which carbon price support rate commodities intended to be used in a combined heat and power station may be the subject of a deemed taxable supply (and, accordingly, this paragraph needs to be read subject to that paragraph).
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Source: https://www.legislation.gov.uk/ukpga/2000/17/schedule/6/paragraph/15 (the official version)
Page: https://openlegislation.uk/finance-act-2000/schedule-6/paragraph-15
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.