Climate Change Levy - clawback of relief where targets are not met
The measure
CCL - clawback of 80% relief where targets are not met.
Who will be affected?
Any energy intensive business that has negotiated a climate change agreement (CCA) through its sector association entitling it to an 80% CCL relief. Where that business and its sector association do not meet their energy consumption targets then the business will be required to pay to HMRC an amount proportionate to the extent to which it failed to meet its targets.
When?
This change comes into effect for CCA certification periods starting on or after 1 April 2009.
This measure is a further 'incentive' for businesses to meet their CCA targets as they will incur a financial cost where they fail to do so. It does however introduce a further layer of complexity in the administration of CCL. Businesses will need to consider the potential implications of this measure when negotiating CCAs and energy consumption targets.
