As a metal manufacturing business, you know that energy is a major expense. Energy costs can make up a significant portion of your operating expenditure and managing them while staying competitive can be difficult.
That’s where the Energy Tax Exemption schemes come in.
(Both schemes are claimable together if you are eligible for both.)
The Climate Change Levy Exemption Scheme (CCL)
Energy-intensive industries can offset the cost of the Climate Change Levy (CCL).
Eligible companies must demonstrate qualifying activities and operate in an energy-intensive sector. This scheme reduces energy costs (electricity, gas, and LPG) by up to 25% in the first year and up to 7% going forward.
Eligible companies can receive full or partial tax exemptions. Although the scheme is not mandatory, it encourages investment in energy efficiency and reduces greenhouse gas emissions by offering increased cash flow.
The Energy Intensive Industry Scheme (EII)
The scheme lowers electricity costs by up to 25% per year by exempting some or all of the Renewable Obligation (RO), Contract for Difference (CFD), and some Feed-in Tariff (FiT) taxes.
This scheme aims to promote competitiveness in the UK’s manufacturing industry. Eligibility requires passing a business-level test based on financials such as electricity spend, EBITDA, and staff wages. The BEIS administers the test.
For a more in-depth understanding of the schemes, visit our Energy Tax Relief webpage using the link in the comments section.
We can help you identify relief-eligible areas and secure both CCL and EII exemptions for your business. To learn more, book a free consultation with Catherine, our energy Product Manager, or message her on LinkedIn.