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What is Landfill Tax?

Landfill tax applies to all kinds of waste. Excise notice LFT1 A explains what is considered as a waste. Landfill tax is collected by the government on every tonne of waste sent by businesses to landfill sites.

Landfill Tax Rates for 2019 in the UK
This tax applies to all waste: -
  • Disposed of by way of landfill,
  • On or after 1st October 1996,
  • At a licensed landfill site.
  • Unless any waste is specifically exempt.

How the Landfill tax is charged?

The landfill tax is charged on the basis of weight measurement of the waste. There are two Landfill tax rates specified by the government under landfill tax and they are as follows –

  1. Standard rate – Standard rate applies to almost every type of waste handled by individuals or businesses.
  2. Lower rate – Lower rate applies to inactive waste. This type of waste is not reactive (either chemically or biologically) and doesn’t decompose such as rocks, construction materials like glass, concrete, brick, soil & clay.
Landfill Tax Rates charged by the government starting from April 2018 to April 2020 is given below in a tabular format –
Rates Rate from 1st April 2020 Rate from 1st April 2019 Rate from 1st April 2018
Standard rate £ 94.15/tonne £ 91.35/tonne £ 88.95/tonne
Lower rate £ 3/tonne £2.90/tonne £2.80/tonne

Do the changes in Landfill Tax Rates Affect anyone in UK?

Tax rates for the Landfill tax are specified by government under Notice LFT1 A which changes from time to time. These tax rates change almost every year and affect all businesses registered with HM Revenue and Customs (HMRC) for Landfill Tax.

Is there any specific objective to the Landfill Tax?

Yes, there is a specific objective behind the landfill tax. This tax was imposed back in 1996. The primary purpose of imposing this tax was to decrease the amount of waste produced by households or businesses. Apart from this, the Landfill Tax was also implemented to encourage the UK citizens to reuse, recycle, composite and recover the waste.

Since the implementation of the landfill tax, here is what happened once the tax was implemented:

  • Since the 2000s, the amount of waste brought to landfills has dropped in the UK by 70%.
  • The average recycling rates have risen from 18% to 44%.

What is Landfill taxes Operative Rate?

The increase in the standard rate and lower rate for Landfill taxes are made in line with RPI and will be implemented on every disposal made or treated at a landfill site. Furthermore, these rates are immediately effective from 1st April of every year. It is expected that these rates will be devolved in Wales, but for UK and Welsh regions, this tax is subject to confirmations from the respective governments.

What is the current governing law for the Landfill Tax?

The current governing law for the Landfill Tax is Section 42 of the Finance Act, 1996. This section not only determines landfill tax rates but also involved in its modification.

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