Climate Change Levy
What is the Climate Change Levy?
The Climate Change Levy is a government tax, introduced on 1st April 2001, on the use of gas and electricity for lighting, heating and power by commerce, industry, agriculture and the public sector.
It applies to both gas and electricity, but does not apply to:
· fuel used by the domestic or transport sector, or
· fuel used for other forms of energy and non-business use
The aim of the levy is to encourage the UK to improve energy efficiency and reduce greenhouse gas emissions.
How much is the Climate Change Levy?
The current rates of are:
· Gas: 0.15 pence per kWh
· Electricity: 0.43 pence per kWh
Is my business exempt from the Climate Change Levy?
To qualify for an exemption the premises have to fall into one of the following categories:-
· For domestic use
· A building, or part of a building, which consists of a dwelling/dwellings
· A building, or part of a building, used for a residential purpose
· A home or institution providing residential accommodation for children
· A home or institution providing residential accommodation with personal care for persons in need of personal care by reason of old age, disablement, past or present dependence on alcohol or drugs or past or present medical disorder
· A hospice
· Residential accommodation for students or school pupils
· Residential accommodation for members of any of the armed forces
· A monastery, nunnery or similar establishment
· An institution which is the sole or main residence of at least 90% of its residents (except use as a hospital, prison or similar institution, a hotel, inn or similar establishment)
· Self catering holiday accommodation
· A caravan
· A houseboat
· A charity other than in the course of furtherance of a business
· Where there is a supply of goods or services partly for domestic or charitable endeavours
If at least 60% of the goods or services qualify, the whole shall be treated as meeting the criteria.
In any other case, an apportionment shall be made to determine the extent to which the business meets the criteria.
If your business or organisation meets the above criteria or you think it may, please advise us when you call and we will arrange for the appropriate forms to be sent out to you.
Call us on 0800 008 77 72 or fill out your details on our homepage and we will call you back.
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