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

You can get help to develop a more circular approach to your business activities from a number of business support organisations. This can be in the form of advice and training as well as funding opportunities. 

In Northern Ireland see our page:  Business support organisations  - Northern Ireland

In Scotland see our page: Business support organisations  - Scotland

In this Guideline

How climate change affects your business

How to cut carbon emissions from energy use

How to cut carbon emissions from business travel

How to cut carbon emissions from business buildings

How to design low-carbon products

How to find suppliers of low-carbon products

Tax breaks to encourage energy efficiency

Comply with emissions trading requirements

International climate change projects and the carbon offset market

How to get involved with Clean Development Mechanism and Joint Implementation projects

Purchasing carbon offsets

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