Devolution of Landfill Tax to Wales and the two year transitional period for the LCF

8 Dec 2017

On Thursday 7 December 2017, the Government issued draft legislation relating to Devolution of landfill tax to Wales and the two year transitional period to close the Landfill Communities Fund (LCF) in Wales. HM Revenue & Customs have released their Landfill Tax Briefing in relation to this subject. The briefing can be read on the right hand side of this page.

Responsibility for the new Welsh Landfill Tax will be transferred to the Welsh Government on 1 April 2018. This impacts on the LCF in Wales which will also cease after 31 March 2018. There will be a transitional period which will end on 31 March 2020.

The Wales page on our website will be regularly updated with information about the closure of the scheme, and there are a number of FAQs about the LCF in Wales, which you can see on the right hand side of the page. Additionally, we will regularly email information to EBs based in, or operating in Wales, with information relating to the closure of the scheme in Wales. We also have guidance specifically relating to the closure of the scheme in Wales which is available here.

If you have any questions or would like any further information about how the closure of the LCF in Wales affects your organisation please contact our Helpline on 01926 488 300 or by emailing helpline@entrust.org.uk

FAQs

Q. What does devolution mean for the LCF?

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Responsibility for collecting landfill tax has been devolved to Scotland and 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 which concluded on 31 March 2017. The LCF in Wales ended on 31 March 2018 when landfill tax was devolved. There is a transitional period for EBs operating in Wales to conclude their Welsh LCF activities which runs from 1 April 2018 to 31 March 2020.

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 has implemented the Landfill Disposals Tax Community Scheme (LDTCS) as a successor scheme in Wales. This scheme is administered by the Wales Council for Voluntary Action (WCVA). For more information please contact them directly.

Q. The UK LCF in Wales

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Responsibility for the new Welsh Landfill Tax was transferred to the Welsh Government on 1 April 2018. This impacts on the current Landfill Communities Fund (LCF) in Wales which ceased to operate after 31 March 2018. There is a two year transitional period from 1 April 2018 to 31 March 2020 for EBs operating in Wales to conclude their Welsh LCF activities. ENTRUST has produced guidance regarding the closure of the LCF in Wales. See the Guidance Manual (Part 7: Devolution) and the Wales page on our website for more information and links.

The Welsh Government has implemented the Landfill Disposals Tax Community Scheme (LDTCS) as a successor scheme in Wales. This scheme is administered by the Wales Council for Voluntary Action (WCVA). More information is available on the WCVA website.