UK Climate Change Levy

The Climate Change Levy, introduced in the UK from April 2009, adds typically 8% to 15% to the energy bills of businesses. The Levy does not apply to householders or charities, and for heavier industrial users the levy can be partially offset by rebates. As a linked tax measure, employers benefit from a reduction in National Insurance payments.

Enhanced Capital Allowances - 100% first year tax allowances - apply for certain energy efficient products from April 2015.

Certain renewable and energy efficient energy supplies are exempt from the Levy. Fuel Oil is already taxed and receives no further tax under the Climate Change Levy. Energy's Climate Change Levy package comprises
Initial presentation of effect on energy costs and labour costs.
Opportunities for Enhanced Capital Allowances.
Opportunities for exemptions, and rebates for industrial users.
Plans for offsetting increases via energy efficiency.
Periodic review of progress.

Further Climate Change Levy resources:
Introduction to the Levy, by the Department of the Environment.
HM Customs & Excise telephone helpline 0161 827 0332 .


See Also