PwC’s environmental tax specialists can help clients to understand the increasingly complex requirements of both existing (e.g. Plastic Packaging Tax, Landfill Tax, Aggregates Levy, Air Passenger Duty and Climate Change Levy) and developing (e.g. Carbon Border Adjustment Mechanisms) environmental taxes and measures and their associated impact on business costs and supply chains. Our team, which includes industry specialists, UK qualified lawyers, and ex-HMRC officers, are able to provide tax consultancy advice, compliance, and dispute resolution services in relation to environmental taxes.
Whether the impact is UK focussed or international, being part of a global network of PwC environmental tax specialists, with SMEs in 80 territories, we undertake a significant amount of international work advising on environmental tax developments across the world.
The Environmental Taxes team covers all environmental taxes, including:
Hot topics
- Plastic Packaging Tax
- Carbon Border Adjustment Mechanism (CBAM)
Plastic Packaging Tax
Whether you manufacture plastic packaging or import packaged goods, the UK's Plastic Packaging Tax could have implications for you.
Plastic Packaging Tax (PPT) came into force in the UK on 1 April 2022. It applies at a rate of £210.82/tonne on plastic packaging with less than 30% recycled plastic, manufactured or imported into the UK (including packaging on goods which are imported).
Carbon Border Adjustment Mechanism (CBAM)
A Carbon Border Adjustment Mechanism (CBAM) is a measure aimed at preventing ‘carbon leakage’ by ensuring the carbon price of imports is equivalent to the carbon price of domestic production. The EU introduced a CBAM from October 2023. The UK is currently consulting on the potential introduction of its own CBAM alongside a number of other similar measures.
Landfill Tax (LFT)
What is it?
- A tax on the disposal of waste, primarily at landfill sites.
Affected clients?
- Landfill site operators. Businesses that move large amounts of waste material e.g. Infrastructure or construction projects.
Scope
- Tax on weight of waste. Businesses are required to submit periodic returns.
Key considerations
- Identification of waste types.
- Penalties for unauthorised waste disposal.
How we can help
- Advice on compliance.
- Dispute resolution with HMRC.
Aggregates Levy (AGL)
What is it?
- A tax on the commercial exploitation of aggregate.
Affected clients?
- Mining and quarrying businesses. Businesses within construction industry.
Scope
- Tax on commercially exploited taxable aggregate at a rate of £2 per tonne.
Key considerations
- Scope of exemption changes on 1 October 2023.
- Businesses may be unaware they are within scope of tax.
How we can help
- Advice on compliance.
- Dispute resolution with HMRC.
Climate Change Levy (CCL)
What is it?
- A tax on the non-domestic use of energy.
Affected clients?
- Businesses generating electricity or other types of energy.
Scope
- Levy on the supply of taxable commodities to non-domestic consumers.
Key considerations
- Complex to navigate - exemptions and reliefs may apply.
- Businesses may be unaware they fall within scope.
How we can help
- Assistance on complex compliance and application of reduced rates.
- Dispute resolution with HMRC.
Air Passenger Duty (APD)
What is it?
- Identification and assessment of developing international exposures and opportunities within the environmental tax landscape.
Affected clients?
- Businesses with complex international supply chains.
Key considerations
- Applicable to all types of new and existing regulation across multiple jurisdictions.
- Contributes to wider ESG reporting such as EPR, CSRD and NFRD.
How we can help
- Leverage global network and existing resources for optimal reach and efficiency.
- Tech enabled to provide analysis and forecasting to assess impact across the value chain.
What are the environmental taxes?
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