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Generic Tax Name Climate change levy
Tax name in the national language Climate change levy
Tax name in English Climate change levy
Member State UK-United Kingdom
Tax in force since 2001/04/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Finance Act 2000.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

 
Geographical Scope

UK.

 
Taxpayers

Energy suppliers.

 
Tax object and basis of assessment

Supplies of taxable energy products for lighting, heating and power for the business and public sector.

 

 

The levy is applied as a specific rate per nominal unit of energy. There is a separate rate for each category of taxable commodity.

 
Deductions, Allowances, Credits, Exemptions

There are exemptions from tax for; electricity from certain renewable sources; supplies to Good Quality Combined Heat and Power (CHP) plants; electricity provided to third parties from certain CHP plants; supply of taxable commodities not for burning or consuming in the UK; energy supplies not used as fuel (e.g. natural gas used as a feedstock for certain chemicals); fuel used for ‘dual use' purposes (e.g. fuel burned for its chemical properties in certain industrial processes, with incidental production of heat); and supplies of energy for use by some forms of transport (rail, other passenger transport, maritime voyages beyond territorial waters); and supplies of energy for use in manufacture of other energy products and for electricity generation. Supplies of natural gas in Northern Ireland paid 35% of the full rate of the levy until 1st November2013, from which time all non domestic gas consumers in Northern Ireland pay the standard rate. Energy intensive industries that enter into Climate Change Agreements (which specify targets for reductions in their energy use/energy intensity/emissions) receive a 65% reduction in the rate of CCL which they apply, and as of FY 2013-14, receive a 90% reduction in the rate of CCL they pay on electricity.

 
Rate(s) Structure

Commodity

 

Rate from 1 April 2013

Rate from 1 April 2014

Reduced rate of CCL for CCA holders

Electricity

 

0.524 pence per kilowatt hour

0.541 pence per kilowatt hour

 

From 10% for 2013-14

 

In Great Britain, gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility.

 

0.182 pence per kilowatt hour

 

0.188 pence per kilowatt hour

 

From 35%

 

Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility for burning in Northern Ireland.

 

0.064 pence per kilowatt hour until 31 October 2013 then main natural gas rate applies

 

N/A

 

None until 31 October 2013

From 35% as of 1 November 2013

 

 

Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state.

 

1.172 pence per kilogram

 

1.210 pence per kilogram

 

From 35%

 

Any other taxable commodity.

 

1.429 pence per kilogram

1.476 pence per kilogram

From 35%

All rates are quoted on the HMRC website. The UK's Carbon Price Floor is enforced by charging separate rates of CCL to taxpayers liable to CPF. This is an operational issue, and not part of CCL policy. 

 
Tax due date

Payment is usually required by the last working day of the month following the end of the return period.

 
Tax collector

Once a supplier of taxable energy supplies is registered for the tax, he is required to submit a CCL return and make payment of the tax liability established by that return. A return will normally cover a three month period. However, suppliers may apply to vary these. Payment may be by credit transfer, direct debit or cheque.

 
Special features

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d214ai

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 624.00 GBP 0.04
2011 675.00 GBP 0.04
2010 669.00 GBP 0.04
2009 706.00 GBP 0.05
2008 720.00 GBP 0.05
2007 698.00 GBP 0.05
2006 717.00 GBP 0.05
2005 741.00 GBP 0.06
2004 768.00 GBP 0.06
2003 818.00 GBP 0.07
2002 812.00 GBP 0.07
2001 585.00 GBP 0.06

Comments