Understanding Climate Change Levy

Is your business eligible for relief from the Climate Change levy? 

The Climate Change Levy (CCL) was introduced on April 1st, 2001 as part of the government’s efforts to help encourage energy savings and cut annual carbon emissions. The CCL tax is imposed on all energy delivered to non-domestic users in the UK. 

The levy forms part of the UK’s Climate Change Programme, a government scheme launched in 2000 to deliver on the agreements made at the 1992 Earth Summit; a major United Nations gathering. The levy only targets organisations that profit from their energy use. 

Some businesses are exempt from the climate change levy: 

1. Businesses that use small amounts of energy 

  • Gas – 4,397kWh per month 
  • Electricity – 1,000kWh per month 

2. Domestic energy users 

  • Armed forces residential accommodation 
  • Caravans 
  • Children’s homes 
  • Homes for the elderly and disabled 
  • Hospices 
  • Houseboats 
  • Houses, flats or other dwellings 
  • Monasteries, nunneries and similar religious communities 
  • School and university residential accommodation for students and pupils 
  • Self-catering holiday accommodation 
  • Supplies to community heating schemes 

Subject to the de minimis provisions set out earlier, if a building is in use as a hospital, a prison or similar institution, a hotel, inn or similar establishment, supplies made to it are not for domestic use, they are deemed ‘mixed use’.

Climate change levy main rates

The increases in the CCL rates for Natural Gas will see further year-on-year increases in the CCL payable to the government 

If you believe that your business may be eligible for relief, you must request a certificate to use in your application for exemption. Our team of energy saving experts at The Energy Check can assist you in applying for relief from the CCL. 

Why work with The Energy Check?

Our team of energy saving experts have years of experience in supporting businesses to make the kinds of improvements, innovations and savings that can not only ensure compliance with current legislation but can genuinely save your business substantial overheads over time. 

Find out if you are CCL exempt by calling us today on 0191 691 1802 or email welcome@theenergycheck.co.uk

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