Osborne removes CCL exemption for renewable electricity
Chancellor George Osborne announced on Wednesday 8 July that the government would remove the Climate Change Levy (CCL) exemption for renewable electricity schemes. Delivering his Emergency Budget, Osborne said the change would “correct an imbalance in the tax system by preventing taxpayers’ money benefitting renewable electricity generated overseas”. A transitional period will begin on 1 August, from when suppliers will still be able to exempt renewable electricity from the CCL if they hold sufficient Levy Exemption Certificates and use them against supplies made to eligible customers. The length of the transition period will be discussed over the coming months. Costings suggested that the move would earn the Treasury £450mn in 2015-16, and that this would rise to £910mn in 2020-21.