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The Climate Change Levy (CCL) is an environmental tax charge on the energy that businesses use. The purpose of this charge is to try and encourage businesses to be more energy efficient and look to reduce overall emissions.

The levy is calculated as below:

Businesses with “domestic use” property may be able to reclaim the charge. HMRC define “domestic use” as:

• Caravans
• Children homes/Homes for the elderly
• Hospices
• Houseboats
• Houses, flats or other places of residence
• Religious homes
• School residential accommodation
• Self-catering holiday accommodation

Where energy is supplied to a mixed-use business whose premises are partly domestic and the domestic use is:

• at least 60% of the total use, the whole supply can be treated as such and is not subject to the main rate of CCL
• less than 60% of the total use, the main rate of CCL must be applied to that portion that does not qualify for relief

If this is the case, you may be able to claim for the last 4 years, whilst also updating the premises status with the energy provider, so that going forward this levy is no longer payable.

In order to do this, you will need meter readings and gas and electric bills for the time period you are claiming for.

To make the claim you are required to complete two forms on HMRC.  The forms you will be required to submit are:

• PP10 – which analyses the costs we would put in from the electric/gas bills.
• PP11 – which we would then use to claim the relief against CCL.

If you have any questions regarding the Climate Change Levy, please give us a call on 01228 711888 and we would be more than happy to help.