Article 20 Amendment of article 47 (borrowing VRTS allowances)

(1)

Article 47 is amended as follows.

(2)

In paragraph (1), for “the 2024 scheme year, the 2025 scheme year or the 2026 scheme year” substitute “any scheme year other than the 2030 scheme year”.

(3)

In paragraph (2)—

(a)

in sub-paragraph (b), for “8%” substitute “11.2%”;

(b)

omit the “and” at the end of sub-paragraph (b);

(c)

after sub-paragraph (c), insert—

“(d)

the number of VRTS allowances which the VRTS participant borrows to surrender for the 2027 scheme year does not exceed 6.8% of the total number of vans of which the participant is manufacturer and which are registered during the 2027 scheme year;

(e)

the number of VRTS allowances which the VRTS participant borrows to surrender for the 2028 scheme year does not exceed 6.9% of the total number of vans of which the participant is manufacturer and which are registered during the 2028 scheme year; and

(f)

the number of VRTS allowances which the VRTS participant borrows to surrender for the 2029 scheme year does not exceed 5.8% of the total number of vans of which the participant is manufacturer and which are registered during the 2029 scheme year.”.

(4)

In paragraph (6), for “, the 2026 scheme year or the 2027 scheme year” substitute “or for any subsequent scheme year”.

(5)

After paragraph (10) insert—

“(10A)

If the VRTS participant accounts for the borrowed allowances for a scheme year which begins three years after the end of the scheme year for which the borrowed allowances were surrendered, the VRTS participant must surrender—

(a)

a number of VRTS allowances or VRTS credits which is equal to the number of borrowed allowances; and

(b)

an additional number of VRTS allowances or VRTS credits which amounts to 14.75% of the number of borrowed allowances.

(10B)

If the VRTS participant accounts for the borrowed allowances for a scheme year which begins four years after the end of the scheme year for which the borrowed allowances were surrendered, the VRTS participant must surrender—

(a)

a number of VRTS allowances or VRTS credits which is equal to the number of borrowed allowances; and

(b)

an additional number of VRTS allowances or VRTS credits which amounts to 18.77% of the number of borrowed allowances.

(10C)

If the VRTS participant accounts for the borrowed allowances for a scheme year which begins five years after the end of the scheme year for which the borrowed allowances were surrendered, the VRTS participant must surrender—

(a)

a number of VRTS allowances or VRTS credits which is equal to the number of borrowed allowances; and

(b)

an additional number of VRTS allowances or VRTS credits which amounts to 22.93% of the number of borrowed allowances.”.

(6)

In paragraph (11), for “paragraph (8)(b), (9)(b) or (10)(b)” substitute “sub-paragraph (b) of any of paragraphs (8) to (10C)”.

(7)

In each of paragraphs (12) and (13), for “the 2027 scheme year” substitute “the 2030 scheme year”.

(8)

In paragraph (15)—

(a)

after “may not be” insert “exchanged under article 23A or 67 or”;

(b)

after “article 57” insert “or 57A”.