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Overview

Environmental taxes help you run your business in a more environmentally friendly way. There are taxes and schemes for different types and sizes of business.

You may get reliefs or be exempt from some taxes - for example if:

  • you use a lot of energy because of the nature of your business
  • you're a small business that doesn't use much energy
  • you buy energy-efficient technology for your business

You can pay less tax by applying for schemes to help you show that you're operating more efficiently and producing waste that's less damaging.

Climate Change Levy

Find out about the Climate Change Levy and Carbon Price Support rates for energy providers on GOV.UK.

Emissions Trading Scheme

The UK Emission Trading Scheme (ETS) is a cap-and-trade system.

The system limits the total level of greenhouse gas emissions across the affected sectors. It creates a carbon market with a carbon price. This encourages companies to invest in cleaner production.

Companies covered by the scheme can buy and sell allowances to cover their yearly greenhouse gas emissions. They can buy allowances at auction or trade them. This helps the market to find the most cost-effective way to reduce emissions.

Find out about the Emissions Trading Scheme on gov.scot.

Capital allowances on energy-efficient items

You can claim capital allowances when you buy energy efficient, or low or zero-carbon technology for your business. This reduces the amount of tax you pay.

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