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HMRC internal manual

Debt Management and Banking Manual

HM Revenue & Customs
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Debt and return pursuit: Climate Change Levy: Who is liable to pay the debt? Group and Divisional registrations

Group registration

Two or more companies can apply for CCL group treatment. One of the companies registers for CCL on behalf of the group, and all the companies in the group account for CCL viathis representative member.

Regulation 7 (4) of the Climate Change Levy (Registration and miscellaneous provisions) Regulations 2001 [S.I. 2001/7], provides:

“All bodies corporate who are members of a group when any levy becomes due from the representative member, together with any bodies corporate who become members of the group while any levy remains unpaid, shall be jointly and severally liable for any levy due from the representative member. “

It makes no difference that the member has since left the group.

The representative member remains the representative member until a lawful substitution takes effect (Regulation 8 (12) of the Climate Change Levy (Registration and miscellaneous provisions) Regulations 2001).

The representative member, and therefore the group, is not liable for debts incurred by members before they joined the group. Group members remain registered under the Companies Acts as limited companies and are individually liable for debts they incurred before they joined the group.

Divisional registrations

Divisional registration allows independent units of large corporations to register for CCL independently, rendering their own returns and paying levy due. The corporation is the legal entity that is ultimately responsible for paying levy due.