HM Revenue and Customs Brief 11/11
Submit Articles Back to Articles
Issued 11th March 2011
Climate Change Levy: changes to the reduced rate and the
supplier certification regime
Entitlement to a number of Climate Change Levy (CCL) reliefs
depends on the end-use of the taxable commodity supplied (details of
those reliefs can be found in Notice
CCL1/3 Reliefs and special treatments for taxable supplies).
To enable their supplier to apply CCL reliefs appropriately, it is the
customer's responsibility to determine the proportion of relief that
should be applied, and provide their supplier with a certificate (form
PP11) for each taxable commodity, declaring the amount of that relief
entitlement. At present there is also a requirement for energy
suppliers and relief claimants to send a copy of each form to HM
Revenue & Customs (HMRC).
CCL legislation will be amended from 1 April 2011 to make
changes to the formula used to determine overall relief entitlement (as
a result of a change to the level of the CCL reduced rate announced in
2009) and to simplify the requirements for evidencing that entitlement.
Who needs to read this
- Suppliers of taxable commodities who have customers
claiming relief from CCL.
- Business and public sector consumers who claim a relief
Pre-Budget Report 2009 announced a change to the level of the
reduced rate available to businesses in a Climate Change Agreement
(CCA), with effect from 1 April 2011. Details of this announcement can
be found in Pre-Budget
Report Note 32 (PDF 26K) published in December 2009.
Legislation was subsequently introduced in Finance Act 2010 to amend
the level of the reduced rate. Consequential changes are being made
from 1 April 2011 to the formula set out at Schedule 1 of the Climate
Change Levy (General) Regulations 2001, which is used to calculate the
overall relief entitlement.
This change to the reduced rate requires a revision of the
PP11 supplier certificate and associated PP10 supporting analysis
forms. HMRC have also reviewed the format and use of these forms
through informal discussions with both energy suppliers and trade
bodies representing relief claimants.
What is changing
The Climate Change Levy (General) (Amendment) Regulations
2011, which come into effect on 1 April 2011, will:
- amend the relief formula to reduce the amount of relief
that can be claimed by businesses in a CCA from 80 per cent to 65 per
- oblige businesses affected by the amendment to the relief
formula, or any future changes to the relief formula brought about by
changes to relevant CCL reliefs, to submit a new PP11 certificate to
their supplier at the time of their first annual review following the
- remove the current requirements on relief claimants and
energy suppliers to send copies of the PP11 forms to HMRC
HMRC are introducing redesigned PP11
(supplier certificate) and PP10
(supporting analysis) forms, which can be accessed from the
links in this brief. From 1 April 2011 all businesses eligible to claim
end-use reliefs should use these revised forms to certify their overall
relief entitlement to suppliers and show HMRC how that overall
entitlement was calculated.
Supplier certificate (PP11)
Following talks with energy suppliers we have been able to
reduce the amount of information required by 41 per cent, making the
form easier and quicker both to complete and use.
Supporting analysis (PP10)
This form has been simplified by removing a number of
information requirements that HMRC have agreed with stakeholders are
unnecessary. The notes have also been revised to make them clearer and
provide a worked example of the relief calculation.
To whom should the forms be sent?
The PP11 supplier certificate should be sent to the energy
supplier only. The PP10 should be sent to HMRC only (the address is
shown on the form).
All of the changes outlined in this brief take effect from 1
Further information can be obtained by contacting the Excise
and Customs Helpline on Tel 0845 010 9000.
CCL1/3 Reliefs and special treatments for taxable supplies will be
About the Author
© Crown Copyright 2011.
A licence is needed to reproduce this article and has been republished
for educational / informational purposes only. Article reproduced by
permission of HM Revenue & Customs.
Follow us @Scopulus_News
Article Published/Sorted/Amended on Scopulus 2011-03-13 17:45:12 in Tax Articles