Introducing

Climate Change Levy (CCL)

Our devoted Energy Tax team provides an A-Z consultation and advice service to make sure you get the maximum financial benefit to which you are legally entitled. Through the CCL claiming process, they will guide you through everything. We handle all administrative tasks to make sure nothing is overlooked.

What is CCL Tax Relief?

The Climate Change Levy (CCL) is a UK initiative that taxes energy supplies to incentivise lower carbon emissions. However, certain energy-intensive industries can qualify for CCL tax relief, mitigating these costs while promoting energy efficiency. The rate of tax relief your business could receive - either 5% or 20% - depends on the type of fuel you use and your specific operational context.

Transport businesses utilising low-carbon fuels, as well as mineralogical and metallurgical companies participating in the Climate Change Agreement (CCA) scheme, are potential candidates for CCL tax relief.

Exemptions and Qualifications

Mineralogical Exemptions: If your business is involved in the production of:

  • Cement
  • Glass
  • Bricks and Tiles
  • Ceramics
  • Pottery
  • Refractories

Metallurgical Exemptions: If your processes include:

  • Iron and Steel Manufacturing.
  • Non-ferrous Metal Production (Aluminium, Copper, Zinc, Lead).
  • Foundries.
  • Ceramics.

Transport Exemptions: Supplies used in specific transport forms are exempt from the main CCL rate if used to:

  • Power trains, trams, or trolleybuses using external electrical sources.
  • Fuel international ships or aircraft.
  • Fuel non-commercial vehicles such as charity buses or vehicles for disabled transport (restrictions apply).

CCL Charge Rates

As of April 1, 2020, the main charge is 0.811 pence per kWh for electricity and 0.406 pence per kWh for gas. Your energy provider will calculate the CCL and include it as a separate item on your bill, which will then be forwarded to HMRC.

Our Expert Energy Tax Team

Taxation has a role to play in encouraging sustainable behaviour and reducing carbon footprints. Our specialised Energy Tax team offers comprehensive consultation services to ensure that you capitalize on available CCL relief options. We manage the administrative aspects of the claiming process to ensure thorough compliance.

Given the UK's ambitious net-zero targets for 2050, it remains to be seen how future budgets will modify the CCL and other levies. Our team remains vigilant and adaptive to these changes, offering you timely and effective advice.

Contact us today to explore your options for relief and remain both competitive and responsible.

Other services

Energy Intensive Industries (EII) Tax Incentive

Qualified businesses can also save on Feed-in Tariff (FIT), Renewables Obligation (RO), and Contract for Differences (CFD) costs. You could see a 20–25% reduction in your annual electricity expenses.

Read more

UK Emissions Trading Scheme (ETS)

Find out if your business qualifies for the UK ETS scheme, designed to promote environmental responsibility while mitigating operational costs.

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Find out how much you can claim on Energy Tax Reliefs!

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