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Climate Change Levy (CCL)

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The impact of global warming has been documented over many years, so the UK government is constantly looking for ways to control the number of greenhouse gases released into the atmosphere.

One of the methods of achieving this was the Climate Change Levy (CCL), an environmental tax on energy to non-domestic users to encourage businesses and organisations to operate in a more environmentally friendly way. This tax affects schools as well as businesses, so what do you need to know about the CCL?

Back in 2015, HMRC increased the CCL by around 2.5% for gas and electricity. They are due to rise again in 2019 and this could cause a dramatic increase in your energy bill, so it’s a good idea to have a thorough understanding of what CCL is. The increase in CCL is due, in part, to the government ending the CRC Energy Efficiency Scheme in March 2019, but while state-funded schools were exempt from CRC, they might not be for the CCL.

What is the CCL?

The CCL short for Climate Change Levy taxes non-domestic properties and organisations on their energy usage. It is charged on taxable commodities (gas, electric, petroleum, coal, lignite, and coke) supplied for lighting, heating, and power purposes to business customers in the industrial, commercial, agricultural, and public service sectors. It’s designed to encourage businesses to use less energy because, since the levy is applied on a per-kilowatt-hour basis, the main way to reduce the tax bill is to decrease energy consumption.

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