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
HMRC: Capital allowance for low emission cars
Carbon Trust: Enhanced Capital Allowance
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