Finance Act 2019

Charge to tax

70 Charge to carbon emissions tax

(1) Carbon emissions tax is charged, in relation to a regulated installation, if the amount of reported carbon emissions for a reporting period exceeds the emissions allowance for the period.

(2) The amount of “taxable carbon emissions” in relation to the installation for the reporting period is the amount of the excess.

(3) Carbon emissions tax is charged on taxable carbon emissions at the rate of £16 per tonne of carbon dioxide equivalent.

71 “Reported carbon emissions”

(1) The amount of “reported carbon emissions” in relation to an installation for a reporting period is the total amount of emissions from the installation, in tonnes of carbon dioxide equivalent, that is stated—

(a) in the emissions determination (or, if there is more than one, the latest emissions determination) for the period, or

(b) if there is no such determination, in the emissions report for the period.

(2) In subsection (1), “emissions determination” means the regulator’s estimate of the total amount of emissions from the installation for the period, determined in accordance with—

(a) article 70 of the Monitoring and Reporting Regulation, or

(b) regulation 44 of the Emissions Regulations.

72 “Emissions report” and “reporting period”

(1) In this Part, “emissions report” means a report of emissions that is submitted to the regulator for the purpose of complying with—

(a) the monitoring and reporting requirements or, in the case of an excluded installation, the monitoring and reporting conditions, or

(b) a requirement of a notice of surrender or of a revocation notice.

(2) “Reporting period”, in relation to a regulated installation, means—

(a) a scheme year, or

(b) such shorter period for which an emissions report for the installation is required by a notice of surrender or a revocation notice.

73 “Emissions allowance”

The “emissions allowance”, in relation to an installation for a reporting period, is the amount of emissions, in tonnes of carbon dioxide equivalent, specified by or under, or determined in accordance with, regulations made by the Commissioners under this section.

74 Liability to pay carbon emissions tax

(1) Carbon emissions tax in relation to an installation is payable by the person who, at the end of the reporting date, holds the permit for the installation.

(2) The “reporting date”, in relation to a reporting period, means the day on which the emissions report for that period is required to be submitted to the regulator under the Emissions Regulations.