Q. The UK LCF in Wales


Responsibility for the new Welsh Landfill Tax will be transferred to the Welsh Government on 1 April 2018. This impacts on the current Landfill Communities Fund (LCF) in Wales which will cease to operate after 31 March 2018. ENTRUST will produce guidance regarding the closure of the LCF in Wales including the details of any transitional period if there is one. We also have a Wales page on our website for more information and links.

The Welsh Government has indicated that it would like to implement a similar scheme in Wales and are currently exploring the development of a Landfill Disposals Tax Community Scheme (LDT CS). For more information please see the Welsh Government website.

Q. The UK LCF in Scotland


Responsibility for the new Scottish Landfill Tax was transferred to the Scottish Government on 1 April 2015. This impacted on the Landfill Communities Fund (LCF) in Scotland which ceased after 31 March 2015. There is a transitional period of two years. Any remaining LCF monies due to be spent in or held in Scotland must be spent by 31 March 2017 and all LCF projects in Scotland must be completed by 31 March 2017.

Environmental Bodies (EBs) can still register LCF projects based in Scotland with ENTRUST until March 2017, but the projects must have a completion date no later than 31 March 2017. Spending LCF monies on projects in Scotland after 31 March 2017 will not be compliant. After this date EBs can only spend UK LCF monies on projects in the rest of the UK. Where an EB based in Scotland does not have plans to fund specific projects in England, Wales or Northern Ireland after 31 March 2017, it will need to transfer any outstanding UK LCF monies to an EB which will fund projects in the rest of the UK or return those outstanding LCF monies to the contributing Landfill Operator (LO). HMRC will clawback the tax credit claimed by the LO in respect of the relevant qualifying contribution if the money is returned.

A new scheme in Scotland called the Scottish Landfill Communities Fund (SLCF) has been established. The Scottish Environment Protection Agency (SEPA) regulates this scheme. For more information please see the SEPA website.

Please see the section on devolution within our guidance manual for more information or see the Scotland page on our website for further information and links,

Q. What does devolution mean for the LCF?


Responsibility for collecting landfill tax has been devolved to Scotland and is due to be devolved to Wales. This impacts on the Landfill Communities Fund (LCF) as the LCF will cease to operate in the countries where landfill tax collection has been devolved to the national governments. The LCF ended in Scotland in March 2015 with a transitional period ending in 2017. The LCF in Wales will end in 2018 when landfill tax is devolved. The arrangements regarding any transitional period in Wales have not been established yet.

Environmental Bodies (EBs) need to be aware of any potential impacts arising from these changes. ENTRUST produces guidance on the impact of devolution and can provide advice to individual EBs.

Where landfill tax is devolved, a similar scheme to the LCF may be established by the devolved governments. The Scottish Government has chosen to implement a similar scheme, regulated by the Scottish Environment Protection Agency (SEPA). The Welsh Government is currently looking into the development of a scheme.

Please see the Wales and Scotland page on our website for more information and links.