BN 51 - Climate Change Levy: Changes to Rates
Who is likely to be affected?
- Suppliers and others liable to account for climate change levy (CCL).
General description of the measure
- The rates of CCL will remain unchanged for 2006-07 and will increase in line with inflation for 2007-08.
Operative date
- The new rates shown below will apply to supplies of taxable commodities made, or treated as taking place, on or after 1 April 2007.
Current law and proposed revisions
- The new rates of levy are:
| Taxable commodity | Rate |
|---|---|
| Electricity | £0.00441 per kilowatt hour |
| Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility |
£0.00154 per kilowatt hour |
| Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state |
£0.00985 per kilogram |
| Any other taxable commodity | £0.01201 per kilogram |
- These changes will affect the provisions relating to the charging of the levy at the full rate and at 20% of the full rate for energy-intensive users with climate change agreements. The amount of levy payable at the reduced rate is determined by applying 20% to the new full levy rates. The 50% rate for energy used in horticulture is being abolished from 1 April 2006 before the new rates above come into effect.
- Paragraph 42(1) of Schedule 6 to the Finance Act 2000 will be amended to reflect the new rates.
Further advice
- Information on dealing with supplies that span the date of the changes can be found in section 7.6 of Public Notice CCL 1, 'A general guide to climate change levy', which is available from the HM Revenue & Customs website. Notice CCL1/3 'Reliefs and special treatments for taxable supplies' provides information about the certification process for the relief mentioned in paragraph 5 above.
- If you have any questions about this change, please contact the National Advice Service on 0845 010 9000.
