The CCL exemption is available to businesses in Great Britain that carry out qualifying mineralogical or metallurgical processes and use taxable energy in those processes:
Business must carry out a mineralogical or metallurgical process defined by HMRC.
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Electricity, gas or other taxable fuel must be used in the qualifying process.
The energy must be a type subject to Climate Change Levy (electricity, gas, coal, coke or LPG).
Energy use in qualifying processes must be identifiable and supported by records or metering.
The process eligibility test confirms whether your production activities are qualifying mineralogical or metallurgical processes. The energy allocation assessment identifies what proportion of each energy supply is used in those qualifying processes and is therefore eligible for exemption.
The CCL exemption is available to businesses that carry out specific qualifying mineralogical or metallurgical processes defined by HMRC. These processes fall into two broad categories based on the type of manufacturing activity.
How the Exemption Works
The exemption applies to the proportion of your energy supply used in qualifying processes. If 60% of your gas supply is used in a qualifying metallurgical process and 40% for other site activities, the exemption applies to the 60%. Your energy supplier removes CCL from that portion and continues to charge it on the remainder.
Our specialists assess your specific production activities, review your energy consumption and site records, and calculate the exact proportion eligible for exemption at each meter or supply point.
Metallurgical processes involve the production, refining, casting, forging or treatment of metals and metal products. Eligible activities include iron and steel production, non-ferrous metal refining (aluminium, copper, lead, zinc, tin and precious metals), metal casting, and metal treatments such as galvanising and electroplating.
Businesses carrying out these activities can claim the CCL exemption on energy used in the qualifying metallurgical processes at their sites.
Qualifying Metallurgical Processes:
Mineralogical processes involve the extraction, processing, manufacturing or shaping of non-metallic minerals and mineral-based products. Eligible activities include glass manufacturing, ceramic production, cement and lime making, stone working, and the production of mineral-based products like asphalt and abrasives.
If your business operates any of these activities, the CCL exemption can apply to the energy used in those specific processes. The exemption removes Climate Change Levy from electricity, gas and other taxable fuels used in qualifying mineralogical work.
Qualifying Mineralogical Processes:
A CCL exemption application requires more than confirming your business carries out qualifying processes. It must demonstrate that your production activities match HMRC's defined mineralogical or metallurgical processes, identify and allocate the energy used in those processes, and calculate the exempt proportion for each energy supply. Mixed production, shared supplies and complex energy arrangements all affect the calculation.
Our Compliance Guarantee
Our energy specialists establish a clear, defensible basis for your exemption. We verify your qualifying processes, calculate your energy allocation accurately, identify any historical CCL that can be recovered, and determine your exempt proportion before submission.
We review your production activities to confirm they match HMRC's defined mineralogical or metallurgical processes eligible for CCL exemption.
Our assessment includes:
We identify what proportion of each energy supply is used in qualifying processes and calculate your exempt energy share.
Our analysis includes:
Review of your production records and energy consumption data
Before proceeding, we calculate what your CCL exemption could save on future bills and any historical CCL that can be recovered.
Our calculation covers:
When your business uses shared electricity accounts, landlord-supplied energy, or operates across multiple sites, we help correctly allocate the exempt proportion.
We advise on:
Our structured approach identifies whether your business carries out qualifying mineralogical or metallurgical processes, calculates your energy allocation and exempt proportion, recovers any eligible historical CCL, and prepares your exemption certificate for coordination with your energy supplier.
Your business can recover Climate Change Levy charged on energy used in qualifying mineralogical or metallurgical processes over the previous four years. A retrospective claim can cover up to four years of eligible CCL, subject to evidence of your qualifying processes, energy consumption and CCL paid during that period.
Speak with our Energy Tax Relief Specialist now to review your energy bills and calculate how much CCL you could recover from previous periods.
Your Climate Change Levy Exemption engagement is led by a team of dedicated Energy Tax Relief Specialists.
The same specialist remains responsible for your work from the initial review through to supplier implementation and beyond. You have one direct point of contact for questions, information requests and application updates.
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Book a structured, no-obligation review with a specialist. We'll assess your manufacturing activities and provide a clear eligibility recommendation.
All discussions are held in strict confidence.
Initial eligibility consultation is always complimentary.
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