Budget 2009 - Changes affecting the LCF
Thursday, 23 April 2009
Her Majesty's Revenue and Customs has made the following announcement regarding changes to the Landfill Communities Fund in the Budget 2009:
"Maximum percentage credit
In Budget 2009, the Government announced that the percentage credit that landfill site operators may claim against their annual landfill tax liability for contributions made to bodies with objects concerned with the environment and enrolled under the LCF, remains unchanged at 6.0 per cent. This should result in an increase to the maximum value of the fund of £2 million to give a potential value of £72 million credit claimable for 2009-10.
Payments made to ENTRUST by Environmental Bodies
Under the LCF, environmental bodies (EBs) must pay a percentage of each qualifying contribution they receive to the regulatory body, ENTRUST, towards its running costs. The amount payable since 1 July 2008 has been 2.28% of each qualifying contribution.
Following the change announced in Budget 2009 to the maximum percentage credit, HMRC has approved a change to the percentage payable to ENTRUST to 2.27%. The change will apply to qualifying contributions received by EBs on or after 1 May 2009. This is estimated to provide ENTRUST with £1.613 million in 2009-10, which will help fund improvements to its structure and operation and make provision for a replacement IT system."
ENTRUST's Terms of Approval have been amended accordingly and can be viewed here.