The Climate Change Levy (CCL) is a government tax on energy for business customers. The tax is levied on all business users of energy, including the public sector, at the point of final consumption. The tax aims to reduce energy use to help the UK meet its commitments to reduce greenhouse gas emissions under the Climate Change Convention.
Who needs to pay?
All UK businesses need to pay, with the following exceptions:
- Energy intensive sectors (covered by the Integrated Pollution and Prevention Control Directive ) will receive discounts of up to 80%
- Horticultural producers using energy for specific growing or sterilisation purposes will receive discounts of 50%
- Domestic, residential and registered charity users are exempt
- Good quality combined heat and power (CHP) and renewable generation is exempt (except for large-scale hydro generation)
- There are also exemptions for some processes that use energy, but not as fuel
If you think you are eligible for a discount, let us know so that we can collect the right amount of tax from you.
How we’ll help
We’ll correctly bill you for the levy and pass the levy proceeds to the Customs & Excise Department. We’ll make sure you know from your bill what you’ve consumed and are being charged.
You may invest in small-scale CHP plants to help lower energy bills. We’d be delighted to talk to you about supplying gas for your CHP plant or project managing its installation, please email us or call us on 0800 804 8589.
Find out more
To view up-to-date levy charges, PP10 and PP11 documents or to find out more, visit www.hmrc.gov.uk or contact your local Customs & Excise office.