Measure

Climate Change Levy – rate changes

The measure

This measure amends the main rates of the climate change levy (CCL) for 2022/23 and 2023/24, implementing the rates announced at Budget 2020.

It also amends, for 2022/23 and 2023/24, the reduced rates of CCL for qualifying businesses in the climate change agreements (CCA) scheme. Similarly, early announcement of these changes was made at Budget 2020.

The changes to the main rates are in line with the government’s commitment to continue to rebalance the electricity to gas ratio.

 

Who will be affected?

Business and public sector users of energy, gas and electricity utilities and suppliers of solid fuels and liquefied petroleum gas (LPG) will be affected.

 

When will the measure come into effect?

The changes will have effect for supplies of taxable commodities treated as taking place on and after 1 April 2022 (2022/23) and 1 April 2023 (2023/24)

Our view

This measure is as expected and in line with the announcement made at last year’s Budget.