Section 190 | Supplies not known to be taxable when made, etc

(1)In Schedule 6 to the Finance Act 2000 (climate change levy), paragraph 24 (deemed supply: change of circumstances or intentions) is amended as follows.

(2)In the heading, for “change of circumstances or intentions” substitute “ change of circumstances etc ”.

(3)For sub-paragraphs (1) and (2) substitute—

(1)This paragraph applies in the following cases.

(1A)The first case is where—

(a)a supply of a taxable commodity has been made,

(b)the supply was not a taxable supply, and

(c)there is such a change in circumstances or any person’s intentions that, if the changed circumstances or intentions had existed at the time the supply was made, the supply would have been a taxable supply.

(1B)The second case is where—

(a)a supply of a taxable commodity has been made,

(b)the supply was made on the basis that it was not a taxable supply, and

(c)it is later determined that the supply was (to any extent) a taxable supply.

(2)This paragraph does not apply where the reason that—

(a)the supply was not a taxable supply, or

(b)the supply was made on the basis that it was not a taxable supply,

is that it was, or was thought to be, exempt from the levy under paragraph 19 or 20A (exemption for supply of electricity produced from renewable sources or in combined heat and power stations) (but see paragraph 20 or 20B).

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(4)In sub-paragraph (3), at the beginning insert “ Where this paragraph applies, ”.

(5)After that sub-paragraph insert—

(3A)Where—

(a)had matters been as mentioned in sub-paragraph (1A)(c), only part of the supply would have been a taxable supply, or

(b)the determination referred to in sub-paragraph (1B)(c) is that only part of the supply was a taxable supply,

the reference in sub-paragraph (3) to the commodity shall be read as a reference to a corresponding part of it.

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(6)In sub-paragraph (5) for “sub-paragraph (1)(c)” substitute “ sub-paragraph (1A)(c) ”.

(7)In paragraph 34(3) of that Act (time when deemed supply under paragraph 24 treated as made) at the end insert “ or, as the case may be, upon the later determination ”.

(8)This section has effect in relation to supplies made on or after such day as the Treasury may by order made by statutory instrument appoint.