Environmental taxes encourage your business to operate in a more environmentally friendly way. There are taxes and schemes for different types and size of business. You may get reliefs or be exempt from some taxes, for example if: you use a lot of energy because of the nature of your business you鈥檙e a small business that does not use much energy you buy energy-efficient technology for your business You can pay less tax by applying for schemes to help you demonstrate that you鈥檙e operating more efficiently and producing waste that鈥檚 less damaging.

Climate Change Levy ( CCL ) is paid at either the: main rates carbon price support ( CPS ) rates Main rates You pay CCL at the main rate on: electricity gas solid fuels - like coal, lignite, coke and petroleum coke The CCL main rates are listed on your business鈥檚 energy bill. There鈥檚 more detailed information on Climate Change Levy rates and allowances . Who it applies to You pay the main rates of CCL if your business is in one of the following sectors: industrial commercial agricultural public services You do not pay the main rate of CCL on certain supplies , for example if you鈥檙e a: business that uses small amounts of energy domestic energy user charity engaged in non-commercial activities Fuels that are exempt Electricity, gas and solid fuel are normally exempt from the main rates of CCL if any of the following apply: they will not be used in the UK they鈥檙e supplied to or from certain combined heat and power ( CHP ) schemes registered under the CHP quality assurance (CHPQA) programme - there鈥檚 more guidance on what schemes need to do to qualify the electricity was generated from renewable sources before 1 August 2015 they鈥檙e used to produce electricity in a generating station which has a capacity of 2MW or greater they will not be used as fuel they鈥檙e used in certain forms of transport There are other exemptions and reliefs . Pay a reduced rate You can get a reduction on the main rates of CCL if you鈥檙e an energy intensive business and have entered into a climate change agreement with the Environment Agency. Energy intensive businesses can get the following reductions: Energy intensive businesses can get a: 92% reduction for electricity 86% reduction for gas 77% reduction for liquefied petroleum gas ( LPG ) 86% reduction for coal and other solid fossil fuels Check if your business is eligible . Your industry trade association can also give advice. Carbon price support rates The CPS rates of CCL encourage industry to use low carbon technology for producing electricity. You pay CPS rates for: gas LPG coal and other solid fossil fuels Who pays CPS rates The CPS rates of CCL are paid by owners of electricity generating stations and operators of combined heat and power ( CHP ) stations. Certain suppliers do not have to pay CPS rates. These include small generators, stand-by generators and generating stations in Northern Ireland.

Capital allowances on energy-efficient items

You can claim capital allowances when you buy energy efficient, or low or zero-carbon technology for your business. This reduces the amount of tax you pay.

You pay tax on top of your normal landfill fees if your business gets rid of waste using landfill sites. If you get rid of waste at sites not authorised for landfill , you鈥檒l be charged Landfill Tax. You may also have to pay a penalty or be taken to court. Landfill operators - what you must do You need to: get a permit register within 30 days of setting up - if you do not you can be fined What to pay The tax is charged by weight. There are 2 rates. You pay the lower rate on 鈥榠nactive waste鈥� - for example rocks or soil. Rate Amount you pay Lower rate 拢4.05 per tonne Standard rate 拢126.15 per tonne Loss on Ignition (LOI) testing regime If your landfill site accepts waste fines, you may need to carry out a loss on ignition test to help determine the rate of tax to pay. Exemptions You do not have to pay Landfill Tax on: dredging activities quarrying and mining pet cemeteries inactive waste used for filling quarries You can get tax credits if you send waste from landfill to be recycled, incinerated or reused.

This is a tax on sand, gravel and rock that鈥檚 either been: dug from the ground dredged from the sea in UK waters imported What you need to do You must register with HM Revenue and Customs ( HMRC ) if your business exploits aggregate in the UK, for example if you鈥檙e a quarry operator. Every quarter, you must tell HMRC how much aggregate you鈥檝e produced or sold. How much you pay You pay tax of 拢2.08 per tonne of sand, gravel or rock. You pay less on smaller amounts, for example 拢1.04 on half a tonne. You still pay tax if you import the materials. Reliefs You can get tax relief if you export aggregates or use them in some industrial or agricultural processes. If you do not use the material as aggregate it may be eligible for relief. Exemptions Certain materials 聽 are excluded from the tax, for example soil, vegetable or other organic matter. If you need more help There鈥檚 more detailed guidance on Aggregates Levy or you can contact the helpline .

Plastic Packaging Tax

This is a tax on finished plastic packaging components that contain less than 30% recycled plastic. The components must also be either: suitable for moving goods from the manufacturer to the end user or consumer used only once by the consumer (single use) What you need to do You must register with HM Revenue and Customs (HMRC) for Plastic Packaging Tax if you either: expect to import or manufacture 10 tonnes or more of finished plastic packaging components in the next 30 days have imported or manufactured 10 tonnes or more of finished plastic packaging components in the last 12 months Every quarter, you must tell HMRC the total weight of finished plastic packaging components you鈥檝e manufactured or imported. How much you pay You pay tax of 拢223.69 per tonne of finished plastic packaging components that contain less than 30% recycled plastic. Reliefs You can get tax relief if you export finished plastic packaging components. Exemptions and exclusions Certain types of packaging are exempt or excluded from the tax. If you need more help There鈥檚 more detailed guidance on Plastic Packaging Tax .

Environmental taxes, reliefs and schemes for businesses: Overview

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Environmental taxes, reliefs and schemes for businesses

Overview

Environmental taxes encourage your business to operate in a more environmentally friendly way. There are taxes and schemes for different types and size of business.

You may get reliefs or be exempt from some taxes, for example if:

you use a lot of energy because of the nature of your business
you鈥檙e a small business that does not use much energy
you buy energy-efficient technology for your business

You can pay less tax by applying for schemes to help you demonstrate that you鈥檙e operating more efficiently and producing waste that鈥檚 less damaging.

View a printable version of the whole guide

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Environmental taxes, reliefs and schemes for businesses

Overview

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