Climate change levy – guidance clarification
HMRC have issued a new Revenue & Customs Brief 22/11 entitled ‘Climate Change Levy: acquisition of electricity from a combined heat and power station’.
The brief clarifies the Climate Change Levy (CCL) guidance in the Notice CCL1/1: Registering for climate change levy. This notice explains what CCL is, how to decide if you should register for CCL, the mechanics of registering, what records you will need to keep, and how to cancel your registration.
The guidance specifically clarifies the circumstances in which electricity from a Combined Heat and Power (CHP) station can be acquired by an electricity utility.
The CCL is chargeable on the industrial and commercial supply of taxable commodities for lighting, heating and power by consumers in industry, commerce, agriculture, public administration, and other services. The levy does not apply to taxable commodities used by domestic consumers, or by charities for non-business use.