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Landfill Tax Changes Come Into Effect

Landfill tax changes have now come into effect in England and Wales, with an increase in both rates of tax for waste disposed at landfill and new rules for those eligible for the lower rate.

From Friday 1 April 2016, and as announced by the Chancellor in the Spring Budget last month, the standard cost of landfill tax has increased from £82.60 to £84.40 per tonne. The lower rate has also risen by 5 pence from £2.60 to £2.65 per tonne.

The increase in costs comes alongside the introduction of tougher rules across the UK for those eligible for the lower rate for landfill disposal. The changes, which were announced in the 2014 Budget, mean that processors will now need to achieve a loss on ignition (LOI) test result of 10% or less to qualify for the lower rate of tax, rather than the previous threshold of 15%.

The change in LOI follows years of negotiation between Her Majesty’s Revenue & Customs (HMRC), the Treasury, Environmental Services Association (ESA) and United Resource Operators Consortium (URoc).

The standard rate of landfill tax is expected to rise further to £86.10 per tonne in 2017 and £88.95 per tonne in 2018.

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