AI Summary of 71. Reliefs from natural gas carbon tax.
This document outlines the tax relief provisions applicable to natural gas used across various sectors, subject to the satisfaction of the Commissioners. Full tax relief is available for uses including electricity generation, chemical processes, diplomatic arrangements, and high-efficiency cogeneration, among others. The provision specifies conditions under which cogeneration must meet EU efficiency standards to qualify.
Additionally, a partial relief from tax is available for natural gas supplied to installations with a greenhouse gas emissions permit, calculated at a specified rate per megawatt hour. Compliance with these regulations is essential for stakeholders seeking to optimise their tax liabilities.
71. Reliefs from natural gas carbon tax.
Amendments (requiring commencement) by s. 54 of the Finance Act 2025 (No. 18), published 23 December 2025.
(1) Without prejudice to any other relief from tax which may apply, and subject to such conditions as may be prescribed or otherwise imposed, a full relief from tax shall be granted on any natural gas which is shown to the satisfaction of the Commissioners to have been supplied for use -
(a) solely for the generation of electricity,
(b) for chemical reduction or in electrolytic or metallurgical processes,
(c) under diplomatic arrangements in the State,
(d) for heat and power cogeneration (other than heat and power cogeneration by a micro-cogeneration unit within the meaning of Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 [OJ No. L315, 14.11.2012, p.1]), where it is determined, by a competent authority designated for the purpose by the Minister for Finance, that such cogeneration meets the requirements for high-efficiency cogeneration under Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012,
(e) in the production of horticultural produce in one or more than one glasshouse of a total area of not less than a quarter of an acre, or