Climate Change Levy - introduction to the two rates of CCL

View Change History
 

Contents

What is Climate Change Levy (CCL)

Rates of CCL

Registering for CCL

Accounting for CCL

Reliefs

Climate Change Levy forms

Contact us

 

What is Climate Change Levy (CCL)

There are two rates of Climate Change Levy:

    • The main rates of CCL

    • The Carbon Price Support (CPS) rates of CCL

Main rates of CCL

The main rates of CCL tax the supply of specified energy products ('taxable commodities') such as electricity, gas and coal for use as fuels (that is for lighting, heating and power) by business consumers, including consumers in:

  • industry
  • commerce
  • agriculture
  • public administration, and other services

The main rates of CCL do not apply to taxable commodities supplied for use by domestic consumers, or by charities for non-business use.

These rates of CCL are intended to change business behaviour in the UK to reduce energy consumption and/or consider using energy produced from renewable sources such as wind farms, solar energy and hydro power. For further details follow the link below:

Notice CCL1 'A general guide to the Climate Change Levy

CPS rates of CCL

The CPS rates of CCL tax the supply of specified energy products ('CPS rate commodities') such as coal and gas for use in electricity generation on or after 1 April 2013. Owners of electricity generating stations other than Combined Heat and Power (CHP) stations and operators of CHP stations, who generate electricity, must register with and account for the CPS rates of CCL to HM Revenue & Customs (HMRC).

These rates of CCL are intended to maintain a clear price for carbon emissions, encouraging the electricity generation industry to invest in low carbon emission technology. The CPS rates of CCL form part of the Carbon Price Floor (CPF).

You can find further information about CPF and CPS rates of CCL here:

Notice CCL1/6 'A guide to the Carbon Price Floor'

Carbon Price Floor

There is also a CPS rate of fuel duty, which is payable on oils used to generate electricity. Businesses will account for CPS through their fuel duty returns. You can find out more information about this in the following HMRC Notice:

Notice 175 'Motor and heating fuels: relief from excise duty on oils used to generate electricity'

Rates of CCL

All rates of CCL are charged at a specific rate per unit of energy. For the main rates of CCL, there is a separate rate for electricity, natural gas, liquid petroleum gas (LPG) and solid fuels.

For the CPS rates of CCL, there are separate rates for natural gas, LPG and solid fuels.

You can find the current main rates and CPS rates of CCL by following the link below.

Climate Change Levy rates

Registering for CCL

For the main rates of CCL, you should register if you supply fossil fuels or electricity generated from fossil fuels for commercial consumption.

For the CPS rates of CCL, you may need to register if you generate electricity from burning fossil fuels.

You can find out more about who should register and how in the following Notices:

CCL1 - a general Guide to CCL

CCL1/1 - Registering for CCL

CCL1/6 - a general Guide to Carbon Price Floor

People for whom a CCL utility direction has been made

You may be liable to a penalty if you are required to register for CCL and fail to do so.

Read more about penalties and interest in Notice CCL1/5 Penalties and interest

Accounting for CCL

Both the main rates and CPS rates of CCL are declared on form CCL 100; the Climate Change Levy return. When you have registered for CCL you must send this form to HMRC to declare the tax due for each accounting period. Accounting periods normally cover a three month period, although you can ask for non-standard accounting periods.

HMRC will send the CCL 100 to you, and it will show the date by which HMRC must receive the completed return and payment made (the due date).

The CCL 100 Climate change levy return must be signed by a responsible person:

    • in the case of a limited company this should be the director or company secretary

    • one of the partners in the case of partnerships

    • the proprietor in the case of sole proprietorships

    • an authorised official in the case of an unincorporated body

    • a trustee or beneficiary in the case of a trust

A Welsh Language version of the form (CCL 100W) is available from the address shown in paragraph 7.2 of Notice CCL 1 'A general guide to Climate Change Levy'.

Notice CCL1 A general guide to Climate Change Levy

Reliefs

The term ‘reliefs’ covers exclusions, exemptions and the reduced rates that can apply to the main rates of CCL. You can find out more about these reliefs and whether you may be able to claim any in the following Notices:

CCL1 - a general Guide to CCL

CCL1/2 - Combined Heat and Power schemes

CCL1/3 - Reliefs and special treatments for taxable supplies

CCL1/4 - Electricity from renewable sources

For the CPS rates of CCL, there are no exemptions or reliefs, but there are some supplies which are outside the scope of the tax. You can find out more about this in:

Notice CCL1/6 - A General Guide to CPF

Climate Change Levy forms

CCL 1 - CCL Application for Registration

PP10 - CCL Relief supporting analysis

PP11 - CCL supplier certificate

Sample CCL100 return

You can find other Climate Change Levy forms by following the link below:

Find a form

Contact us

You can find more information about the main rates and CPS rates of CCL, including latest news, at the following link:

Climate Change Levy

Type of enquiry


Contact details


General telephone enquiries


VAT & Excise Helpline: 0300 200 3700


General written enquiries - online


Online enquiry form for excise


General written enquiries - by post


HM Revenue & Customs
CITEX Written Enquiry Team
PO Box 30001
Glasgow
G67 9EX


Please include your VAT registration number if applicable and the name and postal address of your business.


Enquiries about your registration or your CCL return


HM Revenue & Customs
Central Collection Unit (CCL) Alexander House
21 Victoria Avenue
Southend-on-Sea
SS99 1AY


If you are not sure about where to send you PP11 certificate, contact your energy supplier.

If you have an enquiry about operating renewable Levy Exemption Certificates (LEC's), you should contact Ofgem.

$START-DATA$ title=Climate Change Levy - introduction to the two rates of CCL^ summary=This guide provides an introduction to the Climate Change Levy, what it is, how it is calculated, and how to register.^ doctype=BasicGuides^ date=10-Feb-2014^ author=EP6028831^ $END-DATA$
content tools
FAQ's

See the Excise & Other FAQs if you have any queries.

Glossary

Don't understand some of our terms ?

Find the answers in our Glossary