Climate Change Levy Tax (CCL) is an environmental tax charged on the energy used by businesses. It’s aim is to encourage businesses to be more energy efficient and to reduce their emissions. CCL is charged on the energy units/kWh used and not on any other component of the bill such as fixed daily charges.
It specifically applies to businesses in the industrial, commercial, public services, and agricultural sectors, and is charged on 'taxable commodities' for heating, lighting, and power purposes.
Apart from a few exemptions, businesses in these sectors will be charged CCL on the rates below by their energy supplier which will be listed on gas and electricity bills. This will automatically be passed onto HMRC.
CCL rates per kilowatt-hour on natural gas and electricity
Do I need to pay CCL tax?
There are a few business exceptions to paying the full CCL tax and if you’ve been overpaying you could be entitled to a rebate.
1 Charities engaged in non-commercial activities, and businesses that consume energy below the de minimis limit.
2 Businesses who use materials within mineralogical or metallurgical processes listed by HMRC to ensure their products can compete with other similar EU products. These include:
Stone cutting
Metal production
Metal casting
Pressing
Stamping
Rolling
Coating metals
Our team have successfully helped customers claim over £100,000 in CCL tax refunds. Get in touch for more information.
Case Study
Charles H Coward are an award-winning Sheffield-based manufacturer of castings that are supplied worldwide. Through our partnership with the Sheffield Chamber of Commerce we’ve recouped over £5,400 in CCL rebates for them plus ongoing savings of over £3000 per year on their energy costs.
Contact our team for an initial discussion to see how we can help you.
0114 327 2645