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 certain plant and machinery through tax breaks called capital allowances (CAs).
  • You can also use CAs 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

Read more on: Environmental tax breaks and obligations

Further information

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