Devolution of Landfill Tax to Wales from April 2018

20 Jun 2017

Landfill Tax is scheduled to be devolved to Wales in April 2018 when the Welsh Government is expected to introduce a Landfill Disposals Tax. This impacts on the Landfill Communities Fund (LCF) in Wales which will also cease after 31 March 2018. There will be a two year transitional period after Landfill Tax is devolved when unspent funds can continue to be spent on projects in Wales.

HM Revenue & Customs have published a Landfill Tax Briefing on the devolution of Landfill Tax to Wales. A summary of the points relating to the LCF is below and the full briefing document is to the right hand side of this page.

Impact on the Landfill Communities Fund and transitional arrangements

Legislation will be introduced in the UK Parliament so that from 1 April 2018, landfill operators will only be entitled to claim a tax credit for qualifying contributions to Environmental Bodies (EBs) if they are spent on an approved project in England or Northern Ireland.

The Government recognises that on 31 March 2018, EBs will hold unspent funds from contributions by landfill operators located throughout England, Wales and Northern Ireland. To help reduce pressure on EBs, from 1 April 2018 until 31 March 2020, unspent funds may still be spent on projects located in Wales. This transitional period will mirror the approach taken when Landfill Tax was devolved to Scotland in 2015.

Following the Landfill Tax Briefing we have updated our Guidance Manual in relation to Wales and we will provide further information on the Wales page of our website and by email as it becomes available. We also anticipate holding a training event about the closure of the LCF in Wales in Autumn 2017 to further brief EBs on the closure of the scheme in Wales. Information regarding this event will be shared as soon as it is available.