Landfill tax lower rate
The measure
The criteria for determining the lower rate of landfill tax are to be published. It has also been stated that HM Treasury must take these into account when listing the materials that qualify for the lower rate, which it should do later this year.
Who will be affected?
People disposing of waste which currently qualifies for the lower rate of landfill tax, namely inert and inactive waste, will need to be aware that the list of qualifying materials may be changing. Materials that no longer qualify for the lower rate will be subject to the standard rate, i.e. a shift from £2.50 per tonne to £48 per tonne (as of 1 April 2010).
When?
1 October 2010
HM Treasury announced in 2009 that it was undertaking a consultation on 'modernising
landfill tax' with a view to changing the classification of materials qualifying
for the lower rate. This caused great consternation and resulted in much
lobbying by affected parties. The energy generation sector for example felt they
would have suffered a significant and unbudgeted increase in cost if materials
such as ash were to be reclassified.
It is not entirely clear what changes will come about in October 2010 but it is
to be hoped the Government have taken on board the feedback they received in the
consultation and that the list of qualifying materials to be published by HM
Treasury will be available sooner rather than later to allow businesses time to
respond and prepare.
