Environmental guidance for your business in Northern Ireland & Scotland

Tax breaks to encourage energy efficiency

Environmental tax breaks

Tax breaks are on offer as an incentive to encourage you to adopt certain environmentally responsible practices. For example:

  • Using sources of energy that have less environmental impact can make your business eligible for a reduction in the climate change levy.
  • You can benefit from investing in energy saving plant and machinery through tax breaks called enhanced capital allowances (ECAs).
  • You can also use ECAs for investing in company cars that have low CO2 emissions.
  • Businesses that frequently travel in and out of the congestion charging zone in London may be eligible for a discount if vehicles use alternative fuels.

If your business is in an energy-intensive sector, you may need to have an emissions trading permit. See the page in this guideline: Comply with emissions trading requirements

Further information

HMRC: Capital allowance for low emission cars

Carbon Trust: Enhanced Capital Allowance

SEE ALSO: Environmental tax breaks and obligations

Return to Cutting Carbon Emissions home page

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Permits

NIEA - Apply online

SEPA - Application forms