The Landfill Communities Fund (LCF) is an innovative tax credit scheme enabling operators of landfill sites in England and Northern Ireland to contribute money to organisations enrolled with ENTRUST as Environmental Bodies (EBs).
EBs carry out projects in England, Northern Ireland and Wales that comply with the objectives (Objects) set out in The Landfill Tax Regulations 1996 (Regulations). You can read about these Objects on the projects page of our website.
The Government introduced landfill tax in 1996 to discourage the disposal of waste to landfill and promote more environmentally sustainable methods of waste management. The LCF allows Landfill Operators (LOs) to contribute a portion of their landfill tax liability to community and environmental organisations to 'offset' some of the negative impacts of living in the vicinity of a landfill site.
LOs contributing to the LCF are able to claim a credit (5.3% in 2019/2020) against their landfill tax liability. The percentage is called the diversion rate and is set each year by Government. The credit LOs are entitled to is 90% of the contribution LOs make to EBs. They then either bear the remaining 10% themselves or can ask an independent third party (described as the Contributing Third Party) to make up some or all of the difference.
LOs are organisations which are licensed to run landfill sites. LOs may be large private companies, local authority-owned companies, local authorities or even sole traders.
The Landfill Tax Regulations 1996 govern the LCF. These Regulations have been amended over the years, we maintain an updated copy of the Regulations on the Regulations page of our website.
Responsibility for Landfill Tax in Wales transferred to the Welsh Government on 1 April 2018, this impacts on the LCF in Wales which ceased after 31 March 2018. There is a two year transitional period which will end on 31 March 2020 to allow projects to complete and for EBs in Wales to spend their remaining funds.
For enquiries or more information about the new Welsh Landfill Disposals Tax Community Scheme (LDTCS) which will come into operation on 1 April 2018 please contact the Wales Council for Voluntary Action (WCVA).
Responsibility for Landfill Tax in Scotland was transferred to the Scottish Government on 1 April 2015. The LCF in Scotland also ceased after 31 March 2015 and following a two year transitional phase to spend any outstanding monies, the LCF in Scotland concluded on 31 March 2017.
For enquiries about the new Scottish Landfill Communities Fund (SLCF) or more information on the SLCF please contact the Scottish Environment Protection Agency (SEPA).