CCL ― reliefs ― reduced rates and certificates

By Tolley

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • CCL ― reliefs ― reduced rates and certificates
  • Supplies at the reduced rate of CCL
  • Certificates
  • Retrospective relief
  • Relief formula
  • Registering for and reclaiming CCL
  • Supplies via third parties

This guidance note provides information on the reduced rates of CCL and claiming relief through the use of certificates. This note should be read in conjunction with the Climate Change Levy (CCL) ― main rates and CCL ― reliefs ― outside the scope and exempt supplies guidance notes.

Notice CCL1/3 Climate change levy: reliefs and special treatments for taxable commodities , De Voil Indirect Tax Service V21.123 (subscription sensitive); Climate change agreements: information to report to HMRC  
Supplies at the reduced rate of CCL

With effect from I July 2016, there are new reporting requirements for companies who have a Climate Change Agreement in place and receive more than €500,000 a year in state aid . Businesses who are affected by the changes need to report the following information to HMRC:

  • company’s name, address and VAT registration number
  • confirmation of whether the company is a micro company, small or medium-sized enterprise or a large company
  • the main activity for which the business receives state aid using the Eurostat Nomenclature of Economic Activities (NACE) codes revision 2
  • the region in which the company is based using the Eurostat Nomenclature of Territorial Units (NUTS) at level 2 (EU regions)
  • total number of target units and facilities; and
  • the reporting period start date

This information needs to be provided at the end of each reporting period. The first reporting period was from 1 July 2016 – 31 March 2017. All subsequent reporting periods run from the 1 April – 31 March.

Businesses will be provided with an online form which they will need to complete.

Businesses that are energy intensive and have entered into a Climate Change Agreement (CCA) with the Environment Agency (EA) can claim a reduced rate

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