Guide

Cutting your carbon emissions

Tax breaks to encourage energy efficiency

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.
  • Encouraging staff and business travel by sustainable methods can attract certain tax benefits - seeĀ workplace travel planning.

If your business is in an energy-intensive sector, you may need to have an emissions trading permit.