Alongside the release of the 2017 Spring Budget, the Treasury published potential plans for imposing a landfill tax on illegal disposals of waste. A consultation that began on 20th March, confirmed of the Landfill Tax rate of £88.95 per tonne (for standard rate material) has already been obtained and will be brought into effect from 1st April 2018.
Lower rate material will be taxed at £2.80 per tonne. All rates will rise in line with RPI for a further year, but there is yet to be any suggestion of rates past 1st April 2019.
In addition to this, the Treasury has provided a full specification of the funding regime for The Landfill Communities Fund (LCF), from 2017 to 2019. The Chancellor has confirmed that the subsidy value for LCF will not be modified, remaining at £39.3 million. However, the cap on contributions by operators will be alleviated by 5.3%.
The Treasury said: “This cap will be maintained subject to consideration of Landfill Tax receipts, continued progress in reducing the level of unspent funds held by environmental bodies and the proportion of LCF funds spend on administration costs.”
What is currently considered as taxable waste is also set to change. Details are due to be announced as part of the Finance Bill 2017, but rumour has it that new legislation will redefine what taxable disposal waste for Landfill is altogether.
A spokesperson revealed: “The changes clarify the tax treatment of material disposed of at Landfill sites and give greater certainty to landfill site operators. Following technical consultation, the draft legislation has been restructured to simplify and improve ease of comprehension. The measure will come into effect after the Royal Assent of Finance Bill 2017 and the changes apply to disposals to Landfill in England, Wales and Northern Ireland.”
Though the Treasury is yet (and unlikely) to put it so bluntly, the tightening of such rules and regulations around tax treatment for Landfills comes as a direct result of the sheer number of contentious legal cases HMRC has been involved in throughout recent years. Their hope is to lessen the burden, our hope is that it’ll free up time for more important work to be done.
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