The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides a general overview of the main rates of climate change levy (CCL). This note should be read in conjunction with the following guidance notes:
Notice CCL1 ; De Voil Indirect Tax Service V21.1; Finance Act 2000, Part II, s 30, Schs 6–7; Climate Change Levy (General) Regulations 2001; Finance Bill 2015
What is CCL
The climate change levy (CCL) is a tax on energy delivered business consumers in the United Kingdom, such as, industry, commerce and agriculture. When it was introduced, its aim was to provide anincentive to increase energy efficiency and to reduce carbon emissions.
CCL is applied to taxable supplies of specified energy products, called taxable commodities, that are used for fuels by business consumers.
The main rates of CCL are not applied to taxable commodities that are supplied to domestic consumers and charities where the fuel is used for non-business purposes.
There is no registration threshold for CCL and if a business makes supplies of taxable commodities, including self-supplies, it is required to notify HMRC and register for CCL. More information on registering can be found in the Registering for CCL guidance note.
From a VAT perspective, VAT must be levied on the value of the supply including the amount of CCL levied on the consumer. However VAT is not due on self supplies that are liable to CCL.
CCL will be applied to supplies
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login