Landfill Tax increase changes from 1st September 2009

It was announced in the 2009 Budget that HMRC will be making a number of changes to the landfill tax legislation which will take effect from 1st September 2009. The materials to be used for the following activities will be subject to tax:-

Daily cover;

• Temporary haul roads;
• Temporary hard standing;
• Cell bunds which are not part of the engineered containment;
• Temporary screening bunds;
• Material placed against the drainage layer or liner of the disposal area to prevent damage to the layer or liner;
• Temporary storage of ash (including pulverised fuel ash and furnace bottom ash).

As a result of the changes to this legislation, and with effect from 1st September 2009 any material disposed of at landfill as waste, or is to be used for any of the above purposes, will be liable to landfill tax.

The rate of tax charged will be determined by the individual status of each waste type. Common default position will be to charge landfill tax at the higher rate of tax unless the criteria for the lower rate of tax (i.e. inert materials) is satisfied. For material to be classed as inert material it must be listed in the Landfill Tax (Qualifying Material) Order 1996 and the material must be accompanied by a waste transfer note declaring that the material is inert. For mixed loads the quantity of active material in an otherwise inert load can only be incidental. Anything above this and the whole load will be considered active.

For more details on the legislative changes, please refer to www.hmrc.gov.uk