Closure of the LCF in Scotland

Responsibility for the new Scottish Landfill Tax was transferred to the Scottish Government on 1 April 2015. This impacts on the Landfill Communities Fund (LCF) in Scotland which also ceased after 31 March 2015. There is a transitional period which ends on 31 March 2017.

There is guidance available for the closure of the LCF in Scotland in the Devolution section of our Guidance manual which is available here. These outline the background to the changes made as a result of the closure of the LCF in Scotland. They provide guidance on the record-keeping, reporting and other obligations for EBs throughout the transitional period.

All EBs should read our guidance to ensure they understand their obligations through the transitional period.

EBs can continue to register projects in Scotland with us, but all projects must be completed by 31 March 2017. As and when further information becomes available we will provide an overview and links on this page. You can also see the latest information from HM Revenue & Customs.

Once all LCF activity has been completed, EBs in Scotland should complete a statutory annual return (Form 4) and request their registration in the scheme be ended by downloading a Voluntary Revocation request form and emailing the form to the ENTRUST Compliance Manager. EBs in Scotland who remain enrolled in the LCF should ensure that they have read the Guidance note published on 27 July (as below) and are familiar with their continued obligations under the scheme.

If you have any questions or would like any further information on the closing LCF scheme please contact us or for enquiries about the new Scottish Landfill Communities Fund (SLCF) or more information on the SLCF please contact Revenue Scotland. Revenue Scotland can be contacted on 0300 0200 310.

2 Aug 2016: Closure of the LCF in Scotland - additional reporting requirements and timetable

27 July 2016: Guidance note: Scotland (July 2016) - further information on monitoring, record keeping and reporting responsibilities for EBs in Scotland

23 March 2016: Guidance Manual Part 7: Devolution

24 March 2015: Landfill Tax Briefing 2015

10 March 2015: Devolution of Landfill Tax (Consequential, Transitional and Saving Provisions) Order 2015 No.599 laid before the House of Commons (previously the draft Statutory Instrument published in November 2014)

11 December 2014: Landfill Tax Briefing

28 November 2014: HM Revenue and Customs published a draft Statutory Instrument amending the Landfill Tax Regulations 1996 for the switch off of Landfill Tax and the closure of the Landfill Communities Fund scheme in Scotland in March 2015. This is accompanied by a Tax information and Impact Note for comment along with a Revenue and Customs Brief providing further information.

24 October 2014: Scottish Landfill Tax update from Revenue Scotland and SEPA (letter in the Related Documents section on the right of this page).

10 October 2014: The Cabinet Secretary for Finance, Employment and Sustainable Growth has announced the proposed rates and bands for Scottish Landfill Tax (SLfT)  as part of his Draft Budget for 2015/16.  These are subject to parliamentary approval. The proposed rates for SLfT are available on the SLfT page on the Scottish Government website.

9 October 2014: Scottish Landfill Communities Fund established

28 April 2014: Scottish Environment Protection Agency, Scottish Landfill Tax webpage 

24 March 2014: Further information: The closure of the Landfill Communities Fund (LCF) in Scotland

19 March 2014: Landfill Tax Briefing

17 December 2013: Information request: closure of the Landfill Communities Fund in Scotland

15 November 2013: LCF in Scotland – Accredited Environmental Bodies (EBs)

Landfill Communities Fund

FAQs

Q. What does devolution mean for the LCF?

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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.

Q. The UK LCF in Scotland

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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,