Business energy taxes to be reformed

The government has confirmed that it will review the business energy tax landscape, with a view to improving the effectiveness of the regime.
The Summer Budget, delivered by chancellor George Osborne on 8 July, said that the review would seek to develop a “simple, fair and more efficient energy environment for businesses that minimises administrative burdens and improves incentives for businesses to invest and grow”. A consultation on the proposals will be launched in the autumn.
Among its other provisions, the Budget also confirmed that the Climate Change Levy (CCL) exemption for renewable electricity would be removed. The CCL is a UK-wide tax on the supply of energy to businesses and the public sector. The change is expected to bring an additional £450mn into the Exchequer 2015-16, but will make green energy for business more expensive.
Osborne also confirmed that tax breaks for North Sea oil and gas would be extended.