Recap of Sessions 22 & 23

What is the main objective of the Climate Change Levy (CCL)?

• Increase government revenue

• Encourage energy efficiency and reduce greenhouse gas emissions

• Subsidise renewable energy technologies

• Promote oil and gas usage

Which sectors does the Climate Change Levy apply to?

• Domestic households and public transport

• Businesses and the public sector

• Aviation and marine transportation

• All sectors including individuals

What type of energy is NOT subject to the Climate Change Levy?

• Natural gas

• Electricity from renewable sources

• LPG used in non-domestic settings

• Solid fuels

Which of the following fuels has the highest CCL rate as of April 2024?

• Electricity

• LPG

• Natural gas

• Solid fuels

Why is fuel used in the domestic sector exempt from the CCL?

• To incentivise renewable energy production

• To prevent an additional financial burden on individuals and families

• To encourage higher consumption of energy at home

• To prioritise non-domestic energy policies

Which businesses are exempt from the CCL under the small firms exemption?

• Companies using more than 145 kW of gas per day

• Large corporations with energy efficiency certifications

• Firms using energy below the de minimis threshold

• All businesses with less than 50 employees

What is the purpose of Enhanced Capital Allowances (ECAs) in relation to the CCL?

• To provide direct subsidies for renewable energy projects

• To allow businesses to deduct the cost of energy-efficient equipment from taxable profits

• To exempt all businesses from CCL payments

• To replace the CCL altogether

What is required of businesses for CCL compliance?

• Avoid using fossil fuels

• Register with HMRC, maintain records, and submit regular CCL returns

• Invest in renewable energy projects

• Only use renewable energy sources

Which of the following processes is exempt from the CCL?

• Heating public buildings

• Electrolysis for industrial applications

• Public transportation

• Solar panel installations

How is the CCL expected to evolve in the future?

• Rates will be reduced to ease business costs

• It will merge with public transportation taxes

• It will increasingly integrate with emissions trading and carbon pricing policies

• All exemptions will be eliminated