Landfill Tax Extended to Catch Illegal Waste Sites (E, W, NI)

From 1 April 2018, rogue waste handling operators will be liable to landfill tax, under legislation introduced in Winter Finance Bill 2017 to target the well-organised, large scale operations that take place – according to Environment Agency estimates – on around 600 illegal sites in England, Wales and Northern Ireland.

The aim of the legislation is to remove the financial incentive to set up illegal sites in the first place, preventing rogue operators from harming the environment and ensuring honest firms who pay their taxes can compete for business on a level playing field.

‘Landfill Tax: disposals not made at landfill sites’ not only extends the scope of landfill tax to disposals made at sites without an environmental disposal permit, it clarifies what material is taxable at sites that do have a permit.

At illegal sites, the person disposing of the waste and anyone knowingly facilitating the disposal may be liable for the tax. All parties could also face penalties for non-compliance or criminal prosecution.

Safeguards will ensure landowners and others who – despite carrying out due diligence – were unknowingly involved in any illegal dumping are not assessed for any tax or penalties.

At legitimate sites all materials disposed of will be taxable unless expressly exempt, with new exemptions introduced to ensure landfill tax is not charged on materials outside its scope.

‘Environmental taxes, reliefs and schemes for businesses’ provides an overview of environmental taxes and related issues and the different taxes, schemes and reliefs available for businesses of different types and sizes.