{"id":30435,"date":"2023-12-14T10:00:00","date_gmt":"2023-12-14T10:00:00","guid":{"rendered":"https:\/\/taxfix.com\/en-uk\/?p=30435"},"modified":"2025-09-15T16:33:20","modified_gmt":"2025-09-15T15:33:20","slug":"are-green-taxes-tax-efficient","status":"publish","type":"post","link":"https:\/\/taxfix.com\/en-uk\/blog\/are-green-taxes-tax-efficient\/","title":{"rendered":"Are green taxes tax-efficient?"},"content":{"rendered":"\n<p>With so many other taxes on our minds, who the heck cares about green tax? Well, we&#8217;ll tell you who does&#8230; tax-efficient people! <\/p>\n\n\n\n<p>You may have paid your Income, <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/capital-gains-tax-cgt\/\">capital gains<\/a> and any other relevant taxes, but there\u2019s something else that you should be paying attention to\u2026 green tax! Want to know more? Great, \u2018cause we\u2019re here to tell you it all.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Let\u2019s get <em><strong>down-to-earth<\/strong><\/em> \ud83c\udf31<\/h2>\n\n\n\n<p>What is green tax, you ask? Well, it shouldn\u2019t take too many guesses to realise that the clue\u2019s in the colour \ud83e\uddd0<\/p>\n\n\n\n<p>Green &#8211; the colour of all things good and healthy? Kale, matcha, and the Incredible Hulk?&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p>But there\u2019s more to these taxes than colour connotations! Green taxes, a.k.a <a href=\"https:\/\/www.gov.uk\/green-taxes-and-reliefs\">environmental taxes<\/a>, encourage businesses to operate in an environmentally friendly way.&nbsp;<\/p>\n\n\n\n<p>Green <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/tax\/\">taxes<\/a> are applied to activities such as:\u00a0<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-mint m-align-left\">\n    <div class=\"b-block-body\">\n        <ul>\n<li>Energy usage \ud83d\udca1<!-- \/wp:list-item --> <!-- wp:list-item --><\/li>\n<li>Use of natural resources \ud83e\udea8 (Inc. <a href=\"https:\/\/www.gov.uk\/green-taxes-and-reliefs\/aggregates-levy\">Aggregates levy<\/a>)<!-- \/wp:list-item --> <!-- wp:list-item --><\/li>\n<li>Carbon emissions \u2708\ufe0f (Inc. <a href=\"https:\/\/www.gov.uk\/green-taxes-and-reliefs\/plastic-packaging-tax\">Plastic packaging Tax<\/a>)<!-- \/wp:list-item --> <!-- wp:list-item --><\/li>\n<li>Fuel consumption \ud83d\ude9b<!-- \/wp:list-item --> <!-- wp:list-item --><\/li>\n<li>Waste production and disposal <a href=\"https:\/\/www.gov.uk\/green-taxes-and-reliefs\/landfill-tax\">(Landfill Tax)<\/a> \ud83d\uddd1\ufe0f<\/li>\n<\/ul>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n<p>As well as promoting environmentally friendly behaviour, the revenue raised from these taxes is said to be spent on environmental protection \ud83d\udcb8<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Climate Change Levy&nbsp;<\/h2>\n\n\n\n<p><a href=\"https:\/\/www.gov.uk\/green-taxes-and-reliefs\/climate-change-levy\">Climate Change Levy<\/a> (CCL), the \u2018fancy\u2019 name for environmental tax, is paid at either the <a href=\"https:\/\/www.gov.uk\/guidance\/climate-change-levy-rates\">main rate or Carbon price support (CPS) rates<\/a>.&nbsp;<\/p>\n\n\n\n<p>If you haven\u2019t paid it before, then you probably haven\u2019t a scoobie what this means and why would you? Don\u2019t worry, we\u2019ll fill you in!<\/p>\n\n\n\n<p>You\u2019ll pay CCL at the main rate if your business is in one of these sectors:\u00a0<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-blue m-align-left\">\n    <div class=\"b-block-body\">\n        <ul>\n<li>Industry \ud83c\udfed<!-- \/wp:list-item --> <!-- wp:list-item --><\/li>\n<li>\u200b\u200bCommerce<!-- \/wp:list-item --> <!-- wp:list-item --><\/li>\n<li>Agriculture \ud83d\ude9c<!-- \/wp:list-item --> <!-- wp:list-item --><\/li>\n<li>Public services<\/li>\n<\/ul>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n<p>You\u2019ll pay CCL on things such as:<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-yellow m-align-left\">\n    <div class=\"b-block-body\">\n        <ul>\n<li>Electricity \u26a1<!-- \/wp:list-item --> <!-- wp:list-item --><\/li>\n<li>Gas<!-- \/wp:list-item --> <!-- wp:list-item --><\/li>\n<li>Solid fuels &#8211; like coal, lignite, coke and petroleum coke \u26cf\ufe0f<\/li>\n<\/ul>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n<p>You won\u2019t have to pay the main rate if:<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-purple m-align-left\">\n    <div class=\"b-block-body\">\n        <ul>\n<li>Your business uses small amounts of energy<!-- \/wp:list-item --> <!-- wp:list-item --><\/li>\n<li>You\u2019re a domestic energy user \ud83c\udfe1<!-- \/wp:list-item --><!-- wp:list-item --><\/li>\n<li>You\u2019re a charity engaged in non-commercial activities<\/li>\n<\/ul>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n<p>Some good news, we think? \ud83d\ude2c<\/p>\n\n\n\n<p>Certain fuels are also exempt from the CCL main rates. And by entering a climate change agreement, energy-intensive businesses can receive tax reductions \ud83d\ude4c<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Carbon price support (CPS) rates&nbsp;<\/h3>\n\n\n\n<p>CPS rates encourage the use of low-carbon technology for producing electricity \ud83d\udd0c<\/p>\n\n\n\n<p>CPS rates are paid by owners of electricity generating stations and operators of combined heat and power (CHP) stations. You\u2019ll pay CPS rates for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Gas<\/li>\n\n\n\n<li>Liquefied Petroleum Gas (LPG) \u26fd<\/li>\n\n\n\n<li>Coal and other solid fossil fuels<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">The grass is sometimes greener\u2026&nbsp;<\/h2>\n\n\n\n<p>You guessed it! We\u2019re talking about green tax relief. Yep, the thing that helps you to ace tax efficiency!\u00a0<\/p>\n\n\n\n<p>So, what can you do to make your company&#8217;s tax bill greener? Well, quite a bit!\u00a0<\/p>\n\n\n\n<p>For starters, you can reduce the amount of green tax you pay by claiming <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/capital-allowances\/\">capital allowances<\/a> when you buy energy-efficient or low or zero-carbon technology for your business. Double-win! \u2728<\/p>\n\n\n\n<p>Capital allowances can be used to claim tax relief on things purchased for business use e.g. equipment and vehicle costs.&nbsp;<\/p>\n\n\n\n<p>Here are some more things you can do:\u00a0<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-nude m-align-left\">\n    <div class=\"b-block-body\">\n        <ul>\n<li>Remedy contaminated land to claim a 100% deduction from <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/company-tax\/\">corporation tax<\/a> \u2620\ufe0f<!-- \/wp:list-item --> <!-- wp:list-item --><\/li>\n<li>Claim capital allowances for low emissions when you purchase an electric vehicle for your company<!-- \/wp:list-item --> <!-- wp:list-item --><\/li>\n<li>Get an exemption from <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/business-rates\/\">business rates <\/a>by using green energy technology \ud83d\udd0b<!-- \/wp:list-item --> <!-- wp:list-item --><\/li>\n<li>Developing green technologies? Claim <a href=\"https:\/\/www.gov.uk\/guidance\/corporation-tax-research-and-development-rd-relief\">research and development<\/a> tax relief<!-- \/wp:list-item --> <!-- wp:list-item --><\/li>\n<li>Claim relief from the Plastic Packaging Tax by exporting finished plastic packaging components \ud83d\udea2<\/li>\n<\/ul>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n<h2 class=\"wp-block-heading\">Eco-efficiency is coming to a town near you \ud83c\udfac<\/h2>\n\n\n\n<p>With all this talk about tax efficiency, let\u2019s not forget about eco-efficiency! \u267b\ufe0f&nbsp;<\/p>\n\n\n\n<p>To be eco-efficient, businesses need to lower their impact on the environment by carefully choosing:<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-neutral m-align-left\">\n    <div class=\"b-block-body\">\n        <ul>\n<li>The natural resources they use<!-- \/wp:list-item --> <!-- wp:list-item --><\/li>\n<li>The transportation of their products \ud83d\udee3\ufe0f<!-- \/wp:list-item --><!-- wp:list-item --><\/li>\n<li>The capacity of their products to be recycled<\/li>\n<\/ul>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n<p>And that\u2019s all, folks! Tax efficiency is your new best friend and eco-efficiency could be too! Two birds, one stone\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>With so many other taxes on our minds, who the heck cares about green tax? Well, we&#8217;ll tell you who does&#8230; tax-efficient people! You may have paid your Income, capital gains and any other relevant taxes, but there\u2019s something else that you should be paying attention to\u2026 green tax! Want to know more? Great, \u2018cause [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":41816,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[299],"tags":[416,102,348],"class_list":["post-30435","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-benefits-reliefs-grants","tag-hmrc","tag-income-tax"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Are green taxes tax-efficient? &#8211; Taxfix (formerly TaxScouts)<\/title>\n<meta name=\"description\" content=\"Green taxes, a.k.a environmental taxes, encourage businesses to operate in an environmentally friendly way.\u00a0\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/taxfix.com\/en-uk\/blog\/are-green-taxes-tax-efficient\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Are green taxes tax-efficient? 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