CCL – Climate Change Levy

CCA – Climate Change Agreement
The CCL is a business tax on the use of energy, which was brought into force in 2001 and was introduced to encourage energy efficiency within all business and the public sector.

It is chargeable on the industrial and commercial supply of taxable commodities for lighting, heating and power by consumers in the following sectors of business:

  • industry
  • commerce
  • agriculture
  • public administration
  • other services

The levy does not apply to taxable commodities used by domestic consumers, or by charities for non-
business use.

It applies to electricity, gas, coal and LPG but not to fuels such as oil, diesel and petrol, which are already taxed under the Hydrocarbon Fuels Act.

Neither does the levy does apply to the transport or energy sectors or to selected energy sources such as renewable electricity. However, only renewable electricity with a Levy Exemption Certificate (LEC) is exempt from the levy. When an organisation buys renewable electricity with a Levy Exemption Certificate, they should provide the Certificate to HM Customs and Excise.

RUMM’s CLM service can help you with this energy legislation. Contact us for more information.