The government is keen to encourage efficient use of resources and penalise business practices that are damaging to the environment. Accordingly, a series of taxes and benefits have been developed to raise environmental awareness. An overview of these taxes is given below.
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Aggregates Levy: To counter the damage caused by the extraction of primary sand, gravel and rock that is dug from the ground or dredged from the sea the government has developed the Aggregates Levy. Quarry operators must pay £1.60 per tonne but businesses that import the same products must also pay the tax. Certain materials are excluded from the scheme.
Climate Change Levy: To encourage businesses to reduce their energy consumption or seek to purchase energy from renewable sources the Climate Change Levy taxes commercial and industrial users of energy according to a specific rate per unit. There are exemptions and reductions available.
Landfill and Waste Management: If businesses want to use landfill sites they are charged a landfill tax on top of normal site fees. There are two rates of tax:
Tax Breaks: Certain designated types of plant and machinery purchased by businesses qualify for a 100% tax allowance in the year that the items were bought. These classes include:
These capital allowances help to improve cashflow.
For more information on the above taxes visit the HM Revenue & Customs website at http://www.hmrc.gov.uk/.