- 27th August 2020
- Posted by: Suzy Hill
- Category: Personal Tax, Business News
Treasury outlines plans for carbon emissions tax
The Treasury has published plans for a carbon emissions tax, which could be introduced if the UK fails to secure a Brexit deal with the EU.
A consultation published by the Treasury sets out how the Carbon Emissions Tax would operate if it was introduced from 1 January 2021. The consultation also outlines how the tax might be developed.
Under the new Carbon Emissions Tax, installations currently in the EU Emissions Trading System (EU ETS) whose emissions exceed their annual tax emission allowance would be liable to pay the tax on their emissions from 1 January 2021.
The consultation states that, as outlined in the UK’s Approach to Negotiations Brexit document, the UK would be ‘open to considering a link between any future UK ETS and the EU ETS’. If a link cannot be established, the UK will implement either an unlinked UK ETS or the Carbon Emissions Tax from 1 January.
The consultation is open to individuals and organisations, and closes on 29 September 2020.
Further information can be found here.