Commentary

V21.123 Excluded supplies

Part V21 Climate change levy

V21.123 Excluded supplies

V21.123 Excluded supplies

Supply for domestic or charity use

A supply is excluded from CCL if it is for domestic use1, or for use by a charity2 otherwise than in the course or furtherance of a business3. These exclusions are based on the VAT fuel and power 'qualifying use' provisions4. Simplistically, since qualifying use of fuel and power is chargeable to VAT at the reduced rate of 5% there is a clear indication that a VAT reduced rate supply is also excluded from CCL.

There are several tests to establish that a supply is for domestic or charity use.

A number of supplies, because of their small size, are always considered to be for domestic use. This applies irrespective of the premises to which the supply is made. They are5:

  1.  

    (1)     a supply of not more than one tonne of coal or coke held out for sale as domestic fuel

  2.  

    (2)     a supply to a person at any premises of:

  3.  
    1.  

      (a)     any gas in a gaseous state that is provided through pipes and is of a kind supplied by a gas utility, or

    2.  

      (b)     petroleum gas in a gaseous state provided through pipes,

  4.  

    (3)     where the gas or petroleum gas (together with any other gas or petroleum gas provided through pipes to him at the premises by the same supplier) was not provided at a rate

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