Climate Change Levy
Your business may be eligible for up to 100% relief on your Climate Change Levy charges. Our expert team can guide you through the process based on your business’s specific circumstances.
What is CCL Tax Relief?
The UK’s Climate Change Levy (CCL) aims to lower the carbon footprint of energy use through a charge on gas and electricity supply. However, some business may still claim discounts on their CCL payments through the Climate Change Levy exemption scheme. This supports their competitiveness while still supporting the UK’s wider carbon reduction plans.
What exemptions are there for the Climate Change Levy?
There are exemptions available for :
- “Domestic Use” & Charities
- Community Heating schemes
- Some forms of transport
- Mineralogical & Metallurgical Processes
- Business with a Climate Change Agreement
- CHPs with “Good Quality” output
- Self-supply and electricity generators
Climate Change Levy Rates
For the latest CCL rates per kilowatt-hour on natural gas and electricity, please refer to the table below.
| Time period | Natural gas | Electricity |
| 1st April 2020 to 31st March 2021 | 0.406p/kWh | 0.811p/kWh |
| 1st April 2021 to 31st March 2022 | 0.465p/kWh | 0.775p/kWh |
| 1st April 2022 to 31st March 2023 | 0.568p/kWh | 0.775p/kWh |
| 1st April 2023 to 31st March 2024 | 0.672p/kWh | 0.775p/kWh |
| 1st April 2024 to 31st March 2025 | 0.775p/kWh | 0.775p/kWh |
How do Climate Change Agreements (CCAs) work, and what is the duration of the government's commitment to them?
A Climate Change Agreement (CCA) is a voluntary agreement between the UK government and energy-intensive industries to reduce carbon emissions and improve energy efficiency. Signing a CCA involves meeting specific energy and carbon reduction targets and receiving a discount on the Climate Change Levy (CCL), which can be up to 92% on electricity and 89% on natural gas (for April 2024 – March 2025)
To be eligible, businesses must meet energy intensity and greenhouse gas emissions reduction targets and submit regular progress reports. The CCA scheme has recently been extended to 2027, with the government committing to support businesses to invest in reducing carbon emissions through investing in low carbon technologies.
What does our dedicated energy tax team provide?
Our devoted Energy Tax team provides an A-Z consultation and advice service to make sure you get the maximum financial benefit to which you are legally entitled. Throughout the claim process they will be on-hand to guide you through the process and ensure you stay compliant and maintain your benefit.
If you would like to find out more about the Climate Change Levy, please submit the following information and we will be in touch.