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HMRC internal manual

VAT Fuel and Power

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HM Revenue & Customs
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Scope of the reduced rate: apportionment of supplies partly for qualifying use: use of meters in universities

Fuel and power suppliers do not necessarily charge according to premises but according to meters. The areas covered by meters may not always reflect the areas which match our definition of premises - see VFUP3100.

Using meters to calculate consumption is acceptable if they relate to our definition of premises. If they do not relate to areas fitting our definition of premises, (for example sub meters used by universities) then their use will not be acceptable unless all the sub meters are being used for is to break down the use of the fuel and power within a set of premises to enable it to be apportioned between qualifying and non-qualifying use, and the figures shown on the sub - meters can be substantiated with the overall total shown on the supplier’s meter.

See VFUP2360 for Universities using a CHP.