Climate Change Levy (General) Regulations 2001
What this means for your business
- Enforced by
- Environment Agency
- Applies to
- United Kingdom
- On this page
- 41 compliance obligations
What you must do
41 compliance obligations under this legislation.
Management duties 3
Check supplier CCL certificates and pay any Climate Change Levy due
Unlimited fineWhen you receive a supplier’s CCL relief certificate for an excluded, exempt or reduced‑rate supply, you must check that the certificate is correct within the time limits set out, correct any error, apply for exemption from registration where allowed and pay any Climate Change Levy that is due. Failure to review the certificate or pay the correct CCL can lead to civil penalties and possible prosecution.
Treat electricity supplied to a utility as an exempt CCL use
If your business generates electricity but is not required to register for the Climate Change Levy, and you sell that electricity to an electricity utility (or someone treated as a utility for CCL), you must treat the sale as an exempt use of electricity for CCL purposes. In practice this means you do not charge or pay the levy on that supply and you keep records to prove the exemption.
Use specified accounting periods for Climate Change Levy
If your business is required to register for the Climate Change Levy, you must split its levy accounting into three‑month periods. For registered persons you must follow the dates the Commissioners tell you; for all other registrable persons you must use the standard quarter‑end dates (31 Mar, 30 Jun, 30 Sep, 31 Dec). The Commissioners can also change the dates in special cases.
Notifications 3
Notify Climate Change Levy Commissioners of insolvency appointment
If your business has an unpaid Climate Change Levy penalty or interest and you go into an insolvency procedure, the person appointed to run the insolvency (the appointee) must inform the Climate Change Levy Commissioners in writing. The notice has to be sent within 21 days of the appointment (or when the appointee first learns of the penalty), and must include the date the insolvency started.
Notify Commissioners when acting for a deceased or incapacitated individual
If you start doing any activity that would normally be registered to a person who has died or become temporarily unable to act, you must tell the Climate Change Levy Commissioners in writing. Include the date of death or the date and nature of the incapacity, and send the notice within 21 days of starting the activity.
Notify the Commissioners when you carry on activities of an insolvent CCL registrable person
If your business continues to carry out any activity that would normally make you a Climate Change Levy (CCL) registrable person, but the original registrable person has entered insolvency, you must tell the Commissioners in writing. The notice has to be sent within 21 days of when you start those activities and must include the date the insolvency began.
Other requirements 2
Submit CCL returns and pay the Climate Change Levy each quarter
If your business is a registrable person for the Climate Change Levy you must work out how much levy you owe every three‑month accounting period, send a return to the Commissioners on the prescribed form and pay the amount by the deadline. The return must be signed, include all taxable supplies and any adjustments, and be sent by the last working day of the month after the period ends (or a date the Commissioners specify). Missing a return or payment can lead to prosecution.
Submit CCL returns, pay the levy and keep required records
If your business is registered for the Climate Change Levy you must operate in three‑month accounting periods, file a return for each period and pay any levy shown on the return by the deadline, and keep the supporting records. Returns must be filed on the prescribed form within the month after the period ends (or the date set by the Commissioners), and payment must be made by the same deadline.
Payments and fees 12
Account for Climate Change Levy on self‑supplies
If your business supplies energy to itself (i.e., you are both the supplier and the recipient) you must still treat the transaction as a taxable supply. This means you have to calculate, report and pay Climate Change Levy on those self‑supplies just as you would for any other customer.
Charge Climate Change Levy on supplies used for admin, call‑centre, visitor‑centre, commercial or off‑site tanker deliveries
If you supply a taxable commodity to a producer and the producer uses it for headquarters administration, telephone call‑centre, dedicated visitor‑centre, commercial activities (including power for computers and legal/tax matters) or for road‑tanker deliveries away from the production site, you must treat that supply as taxable and add the Climate Change Levy. In other words, you cannot rely on the usual exemption for such supplies.
File CCL returns and pay the Climate Change Levy on time
If your business is registered for the Climate Change Levy you must submit a return for every accounting period and pay any levy shown on that return. Returns have to be in the prescribed form and sent to the address the Commissioners set, and payment must be made by the same deadline. Missing a filing or payment deadline can lead to penalties.
File CCL returns and pay the Climate Change Levy on time
If your business is registered for the Climate Change Levy you must send a tax return for every accounting period (normally every three months) and pay the amount shown on that return. The return must be filed by the last working day of the month after the period ends (or another date the Commissioners set), and the payment must be made by the same deadline.
Pay Climate Change Levy by the filing deadline
If your business is a registrable person for the Climate Change Levy, you must pay the levy amount due for each accounting period by the date you submit your return. The payment has to be sent to the address or bank account the Commissioners have published (or another address you have arranged). If you set up a direct‑debit arrangement, you may be given an extra 7 days to pay.
Pay Climate Change Levy if you control assets of a deceased, incapacitated or insolvent registrable person
If you are appointed as a representative (for example, an executor, administrator or insolvency practitioner) of a business that was liable for the Climate Change Levy because the owner has died, become unable to act, or entered insolvency, you must step into the business's shoes for CCL purposes. This means you must calculate and pay any Climate Change Levy on the assets you control, up to the value of those assets, and comply with any other CCL duties the business would have had.
Submit CCL returns and pay the Climate Change Levy each accounting period
Unlimited fineYou must work out how much Climate Change Levy you owe for every three‑month accounting period, send a return to the Commissioners by the deadline, and pay the amount due by the same date. The return must use the prescribed form, include the correct calculations, and be signed and dated.
Submit CCL returns and pay the levy on time
If your business is registered for the Climate Change Levy you must work out the levy due for each three‑month accounting period, send the prescribed return to HMRC and pay the amount owing. The return and payment must be made by the last working day of the month after the period ends (or by any later date the Commissioners direct).
Submit CCL returns, pay the levy and keep records
If your business is registered for the Climate Change Levy you must work out the levy due each accounting period, send a return to the Commissioners by the deadline, pay the amount by the same date, and keep the supporting records. The return must be on the prescribed form, signed and dated, and the payment must be sent to the authorised address or bank account.
Submit Climate Change Levy returns and payments each accounting period
You must work out how much Climate Change Levy (CCL) you owe for every three‑month accounting period, send a return to the Commissioners and pay the amount by the deadline. Returns must be in the prescribed form, signed and include all taxable supplies and any adjustments. Missing a deadline can lead to prosecution.
Submit quarterly Climate Change Levy returns and payments
If your business is liable for the Climate Change Levy (i.e. you are a registrable person), you must keep quarterly accounting periods, work out the levy due, send a return using the prescribed form and pay the amount shown on the return. Both the return and the payment have to be made by the deadline for each accounting period, and you must keep records to prove the calculation.
Submit quarterly Climate Change Levy returns and pay the levy
If your business is registered for the Climate Change Levy you must work out the levy due for each three‑month accounting period, send a return to the Commissioners and pay the amount by the deadline (the last working day of the month after the period ends, or the date the Commissioners specify). You also need to keep records that show how you calculated the levy.
Offences and prohibitions 1
Fail to comply with Climate Change Levy requirements
Fine up to £250If your business does not meet any of the specific duties set out in the Climate Change Levy Regulations (for example the reporting, record‑keeping or payment obligations in regulations 5, 6, 7, 8, 27, 28, 37, 38, 51B, 51H, 55, 56 or 58), you will be guilty of an offence. Each breach attracts a fixed fine of £250, with no risk of imprisonment.
Record keeping 3
Keep and maintain a CHP outputs record and allocate LECs
If you run a fully or partly exempt combined heat‑and‑power (CHP) station that generated electricity before 1 April 2013, you must keep a separate, accurate record of every megawatt‑hour of output. For each MWh you must allocate any CHP levy exemption certificate (LEC) within two months of it being issued, flag any restricted LECs within 30 days, retain the record for six years and show it to the Authority or the Secretary of State on request.
Keep required Climate Change Levy accounts
If your business is liable for the Climate Change Levy you must keep a regular summary of the levy you owe (the CCL account). If you claim tax credits for bad debts or other credits you also need separate accounts for those. All records must be kept in the format set out in the official notice.
Record and classify self‑supplied electricity for Climate Change Levy
If your business generates electricity for its own use, you need to check whether that electricity comes from taxable commodities, renewable sources or other exempt categories. The way you classify your self‑supplied electricity determines whether you owe the Climate Change Levy (CCL). Keep clear records so you can calculate the levy correctly each year.
Registration and licensing 1
Apply to transfer Climate Change Levy registration when selling a going‑concern
If you run a business that is registered for the Climate Change Levy and you sell it as a going concern, you and the buyer must jointly ask the Commissioners to cancel your registration and register the buyer using the same registration number. This also passes any CCL liabilities, credits or returns to the new owner.
Reporting and filing 16
Continue accounting for Climate Change Levy until cessation
If your business is authorised to pay the Climate Change Levy, you must keep calculating, reporting and paying the levy as usual. You only stop this when a specific cessation event occurs – for example when your levy liability exceeds £2,000 in a period, your authorisation is terminated, you become insolvent and cease trading, the business closes or is deregistered, you die or become bankrupt, or you voluntarily end the scheme.
Include relief percentage on supplier certificates
When you receive a taxable fuel, electricity or other commodity that is subject to the Climate Change Levy, you must work out what proportion of that supply is exempt from the levy and record that percentage on the supplier’s certificate. This information is used by HMRC to confirm how much, if any, of the supply is liable for the levy.
Notify Authority and keep records to retain CCL exemption
If your business generates renewable electricity and wants to claim an exemption from the Climate Change Levy, you must not allocate that electricity for export, must tell the relevant Authority about the renewable contract and its LEC identifier, and must keep detailed, readable records for up to six years that you can provide on request. Failing to meet these conditions means you lose the exemption.
Provide accurate electricity production data for CHP levy exemption
If you run a combined heat and power (CHP) plant, you must give the relevant Authority the most accurate figures for the electricity you generate, measured according to the CHPQA metering rules. This data is needed for the Authority to certify your electricity and issue a Climate Change Levy exemption certificate.
Provide supplier certificates and supporting analysis for exempt supplies
If you receive a fuel or energy supply and want to treat it as exempt or excluded from the Climate Change Levy, you must give the supplier a certificate confirming the supply meets the exemption criteria. When the exemption only covers part of the supply, you also need to supply an analysis showing how you calculated that part, following the required regulations.
Submit accurate Climate Change Levy returns
Each accounting period you must complete a Climate Change Levy (CCL) return showing the levy you owe on taxable supplies, include any authorised adjustments or corrections, provide all the information the form asks for, and sign it confirming the details are true. The return must be filed in the way the Commissioners prescribe.
Submit CCL returns and pay levy each accounting period
If your business is registered for the Climate Change Levy you must break the year into three‑month accounting periods, calculate the levy due for each period, send a prescribed return and pay the amount by the deadline (the last working day of the month after the period ends, unless the Commissioners set a different date). You also need to keep records that support the figures you report.
Submit CCL returns and pay the Climate Change Levy
If your business is registered for the Climate Change Levy you must send a return for every accounting period showing the levy you owe, and you must pay that amount by the same deadline. Returns must use the form and delivery address set by the Commissioners, and you must keep records that support the calculations.
Submit CCL returns and pay the Climate Change Levy on time
If your business is registered for the Climate Change Levy you must keep quarterly accounting periods, file a return for each period using the prescribed form and sign it, and pay the levy shown on the return. Both the return and the payment must be sent by the deadline set by the Commissioners, and you must keep records to prove the information is correct.
Submit CCL returns and pay the Climate Change Levy on time
Unlimited fineIf your business is registered for the Climate Change Levy, you must work out the tax due each accounting period, send a return to the Commissioners (HMRC) and pay the amount by the deadline. Returns must be in the prescribed format and sent to the address they specify, and you must keep records of your calculations and payments.
Submit CCL returns and pay the Climate Change Levy on time
Unlimited fineIf your business is a registrable person for the Climate Change Levy, you must work out how much levy you owe each accounting period, send a return to HM Revenue & Customs using the prescribed form, and pay the amount owing by the same deadline. You also need to keep the supporting calculations and records in case they are checked later.
Submit CCL returns, pay the levy and keep records
If your business is registered for the Climate Change Levy, you must out levy due for each three‑month accounting period, send a return to HMRC by the deadline, pay the amount shown on the return, and keep the supporting records. The return must be in the prescribed form and sent to the address or bank account the Commissioners specify.
Submit Climate Change Levy returns, pay due tax and keep records
If your business is registered for the Climate Change Levy you must work on a three‑month accounting cycle, send a return for each period and pay any levy shown on the return by the deadline. You also have to keep the supporting records and use the forms and delivery addresses prescribed by the Commissioners.
Submit quarterly Climate Change Levy returns and payments and keep records
If your business is registered for the Climate Change Levy, you must treat each three‑month accounting period as a reporting cycle. Within each cycle you need to calculate the levy due, send a completed return to HMRC by the deadline, pay the amount shown on the return, and retain the supporting records.
Submit written claim for repayment of overpaid Climate Change Levy
If your business has paid Climate Change Levy in error and you are not entitled to a tax credit, you must send a written claim to the Commissioners. The claim must state the amount you think you are owed and explain how you worked that figure out, backed up by any documents you have.
Submit your Climate Change Levy returns on time
If your business is liable for the Climate Change Levy you must send a return for every accounting period. The return has to use the form set out by the Commissioners and be sent to the address they specify, and it must arrive by the deadline (normally the last working day of the month after the period ends, unless the Commissioners give you a different date). Failure to do so can trigger enforcement action.
Penalties for non-compliance
5 penalties under this legislation. 4 carry an unlimited fine.
Check supplier CCL certificates and pay any Climate Change Levy due
Unlimited fine
Submit CCL returns and pay the Climate Change Levy each accounting period
Unlimited fine
Submit CCL returns and pay the Climate Change Levy on time
Unlimited fine
Submit CCL returns and pay the Climate Change Levy on time
Unlimited fine
Fail to comply with Climate Change Levy requirements
Fine up to £250
Practical guidance
Our guides explain how to comply with the requirements above.
Sections and provisions
74 classified provisions from this legislation.
Duties 40
- Schedule 2 The CHP Relief Condition relevant supply in relation
- s.3 Accounting periods
- s.4 Returns
- s.5 Content of returns The registrable person
- s.6 Payment
- s.7 Records
- s.8 ACCOUNTING, PAYMENT, RECORDS, TAX CREDITS, REPAYMENTS, SET-OFF, ETC. The registrable person
- s.9 ACCOUNTING, PAYMENT, RECORDS, TAX CREDITS, REPAYMENTS, SET-OFF, ETC. The registrable person
- s.13 ACCOUNTING, PAYMENT, RECORDS, TAX CREDITS, REPAYMENTS, SET-OFF, ETC. The registrable person
- s.14 ACCOUNTING, PAYMENT, RECORDS, TAX CREDITS, REPAYMENTS, SET-OFF, ETC. The registrable person
- s.15 ACCOUNTING, PAYMENT, RECORDS, TAX CREDITS, REPAYMENTS, SET-OFF, ETC. The registrable person
- s.17 ACCOUNTING, PAYMENT, RECORDS, TAX CREDITS, REPAYMENTS, SET-OFF, ETC. The registrable person
- s.18 Form and manner of claim for repayment of overpaid CCL if no person entitled to tax credit
- s.20 ACCOUNTING, PAYMENT, RECORDS, TAX CREDITS, REPAYMENTS, SET-OFF, ETC. The registrable person
- s.21 ACCOUNTING, PAYMENT, RECORDS, TAX CREDITS, REPAYMENTS, SET-OFF, ETC. The registrable person
- s.22 ACCOUNTING, PAYMENT, RECORDS, TAX CREDITS, REPAYMENTS, SET-OFF, ETC. The registrable person
- s.23 ACCOUNTING, PAYMENT, RECORDS, TAX CREDITS, REPAYMENTS, SET-OFF, ETC. The registrable person
- s.24 ACCOUNTING, PAYMENT, RECORDS, TAX CREDITS, REPAYMENTS, SET-OFF, ETC. The registrable person
- s.25 ACCOUNTING, PAYMENT, RECORDS, TAX CREDITS, REPAYMENTS, SET-OFF, ETC. The registrable person
- s.27 ACCOUNTING, PAYMENT, RECORDS, TAX CREDITS, REPAYMENTS, SET-OFF, ETC. The registrable person
- ... and 20 more duties
Definitions 19
- s.10 Bad debts: entitlement to tax credit
- s.19 Tax credits and other repayments: unjust enrichment—reimbursement arrangements to be disregarded
- s.35 EXCLUDED, EXEMPT ... ... AND REDUCED-RATE SUPPLIES
- s.36 EXCLUDED, EXEMPT ... ... AND REDUCED-RATE SUPPLIES
- s.37 EXCLUDED, EXEMPT ... ... AND REDUCED-RATE SUPPLIES
- s.42 EXCLUDED, EXEMPT ... ... AND REDUCED-RATE SUPPLIES
- s.43 EXCLUDED, EXEMPT ... ... AND REDUCED-RATE SUPPLIES
- s.46 Interpretation of Part IV
- s.48 RENEWABLE SOURCE ELECTRICITY biomass declared net capacity fossil fuel
- s.50 RENEWABLE SOURCE ELECTRICITY biomass declared net capacity fossil fuel
- s.51 RENEWABLE SOURCE ELECTRICITY biomass declared net capacity fossil fuel
- s.53 Small-scale users of electricity and gas
- Admission to the scheme Admission to the scheme
- CCL treatment dependent on certification CCL treatment dependent on certification
- Combined heat and power stations Combined heat and power stations CHPQA certificate QPO electricity
- EXCLUDED, EXEMPT ... ... AND REDUCED-RATE SUPPLIES EXCLUDED, EXEMPT ... ... AND REDUCED-RATE SUPPLIES
- Interpretation of Part IV(A) Interpretation of Part IV(A) CHPQA certificate QPO electricity
- Interpretation of Regulations 6B to 6G Interpretation of Regulations 6B to 6G authorised person current accounting year the scheme
- Supplies pursuant to CHP declaration contract Supplies pursuant to CHP declaration contract
Exemptions 6
- s.11 Other tax credits: entitlement
- s.12 Tax credits: general
- s.33 Special rules for excluded, exempt ... ... and reduced-rate supplies
- s.44 Facilities covered by climate change agreements
- s.45 Facilities covered by climate change agreements
- s.47 Generation and certification of renewable source electricity