Climate change levy
Produced in partnership with Angus Evers of Shoosmiths LLP
Climate change levy

The following Environment guidance note Produced in partnership with Angus Evers of Shoosmiths LLP provides comprehensive and up to date legal information covering:

  • Climate change levy
  • Brexit impact
  • What is the climate change levy?
  • Taxable supply
  • Taxable commodities
  • Carbon price support
  • Registration requirements
  • Cost of the climate change levy
  • Consequences of not paying the climate change levy
  • Tax supply or tax point
  • more

Brexit impact

This content is likely to be impacted by the UK’s withdrawal from the EU. For information on how leaving the EU will affect environmental law, see Practice Note: Brexit—environmental law implications, which details the relevant aspects of the withdrawal process, as well as providing insights into developments affecting environmental protection, such as the draft Environmental Principles and Governance Bill.

The date and time of withdrawal of the EU (exit day) is specified in UK law (under section 20 of the European Union (Withdrawal) Act 2018), but until the legal terms of the withdrawal negotiated with the EU are finalised, there remains a possibility that the UK’s membership will lapse automatically on exit day, without all the necessary legal and transitional arrangements in place. This has implications for practitioners considering specific environmental law regimes. For information on no deal guidance for these regimes, see Practice Note: Brexit—key publications on implications for environmental law, which provides links to relevant no deal guidance published by the government.

For details on Brexit-related regulations relevant to the environment, see: Environment legislation tracker 2019 and Environment legislation tracker 2018.

What is the climate change levy?

The climate change levy (CCL) is a mandatory tax on UK business energy use, charged at the time of supply, known as taxable supplies.

It is administered by HMRC but