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). See our enhanced capital allowance scheme for energy-saving technologies on the GOV.UK website.
- You can also use ECAs for investing in company cars that have low CO2 emissions. See our guide on first-year allowances: the basics.
- Encouraging staff and business travel by sustainable methods can attract certain tax benefits. See our guide on workplace travel planning.
If your business is in an energy-intensive sector, you may need to have an emissions trading permit.