Budget Report, economy uk, budget economic, Treasury, Corporate Tax, Pensions, reform, R&D, Research and Development - ukbudget.com

  Deloitte UK   Tax   Deloitte news room   Contact us
Budget Report, economy uk, budget economic, Treasury, Corporate Tax, Pensions, reform, R&D, Research and Development - ukbudget.com
 

Landfill tax

The standard rate of landfill tax will be increased from £21 per tonne to £24 per tonne on 1 April 2007 and then from 1 April 2008 onwards it will increase annually by £8 per tonne until at least 1 April 2010. The lower rate, which applies to specific inactive wastes, will increase from £2 to £2.50 per tonne from 1 April 2008. Lastly a Treasury consultation document on brownfield land suggests, as an option, the removal of the contaminated land exemption.
 

Our view
This is a very significant increase in landfill tax which will now increase from £21 per tonne today to £48 per tonne by 2010. This will impact very heavily on all waste producers and should make other methods of dealing with waste (including recycling and waste to energy) much more attractive. The removal of the contaminated land exemption could prove costly for developers unless other tax reliefs are to be introduced.