Section 96: Climate Change Levy: Main Rates for 2015-16
Summary
1.This section amends Schedule 6 to the Finance Act (‘FA’) 2000 to increase the main rates of climate change levy (‘CCL’) broadly in line with inflation (based on the Retail Prices Index), with effect from 1 April 2015.
Details of the Section
2.Subsections (1) and (2) replace the table of rates in paragraph 42(1) of Schedule 6 and provide the commencement date.
Background Note
3.CCL came into effect in April 2001. It is a tax on the non-domestic (i.e. business, service and public sector) use of energy (gas, electricity, liquefied petroleum gas and solid fuels), and is aimed at promoting energy efficiency and the use of renewable energy, in order to help meet the UK’s international and domestic targets for cutting emissions of greenhouse gases.
4.Since the main rates of CCL were increased in 2007 they have kept pace with inflation so that the levy maintains its environmental effect. On each occasion that the main rates have increased the changes have been legislated for in the previous year’s FA.
