The Climate Change Levy (“CCL”) is a government imposed tax on the supply of specified energy products such as electricity or gas for business or non-domestic purposes.
Where the electricity or gas supply is wholly or partly for domestic use that part of the supply will qualify for a reduced rate of VAT and will be exempt from CCL charges.
What types of electricity and gas supply count as domestic use?
The types of supply considered as domestic use for Mobile Home Parks or Holiday Parks includes electricity and gas supplied to:
- Caravans solely for residential use either on a full-time or holiday basis;
- Caravans or other holiday accommodation let on a self-catering basis;
- Toilet or shower blocks for the use of customers on the park;
- Residential accommodation provided for the park’s staff.
When is a parks electricity or gas use not classed as domestic?
A park’s electricity or gas supply will not be considered as being for domestic use where it is used to carry out business activities such as office activities, retail or catering outlets or leisure or sporting activities for which a charge is made.
When is a holiday park exempt from paying climate change levy?
A park will only be exempt from paying the CCL on the part of the supply that is attributed to domestic use. The CCL charge will still be payable for any supply which is for business use.
Where on a park there is a mix of domestic and business use, the park owner will have to fairly and reasonably estimate what proportions of the bill are attributed to domestic use and what is attributed to business use.
In some cases a park will have to provide their electricity or gas suppliers with a Customer Declaration Certificate in order to benefit from the reduced rate of VAT and exemption from CCL.
Find out more
For further help or support, please contact our specialist Parks team who will be happy to provide bespoke advice and guidance.