Changes to landfill tax regime come into effect

Posted on 1st April, 2015

The standard rate of landfill tax will rise from £80 to £82.60 per tonne today in a continued bid by the government to incentivise other methods of disposal.

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Similarly, the lower rate of landfill tax increases from £2.50 per tonne to £2.60 per tonne.

Last week the HMRC sent a briefing document to landfill site operators registered in the UK informing them of the incoming changes – including the ‘loss on ignition’ testing regime that also comes into effect today.

The LOI test, which is now compulsory for all landfill operators, is set to help determine whether a waste load should be subject to a standard or lower rate of landfill tax.

However, the test will not initially be enforced in Scotland, where landfill tax powers have now been devolved to the Scottish Government.

Although it is one of the first independent tax making powers north of the border for 300 years, landfill tax rates are expected to remain in line with the rest of the UK for the foreseeable future.

Meanwhile, in the wake of last week’s budget announcement, HMRC has also confirmed the standard and lower rate of landfill tax will rise again in April 2016, to £84.40 and £2.65 respectively.