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

24 Mar 2014

As you will be aware, the current landfill tax will no longer be charged on waste going to Scottish landfill sites after 31 March 2015. This impacts on the LCF in Scotland which will also cease after 31 March 2015. The period from 1 April 2015 to 31 March 2017 will be a transitional period to enable completion of LCF funded projects in Scotland.

During the transitional period LCF funds from contributions by Landfill Operators across the UK, in relation to credits claimed by them on disposals up to 31 March 2015, can be spent on projects located throughout the UK including Scotland. 

After 31 March 2015 the current landfill tax will only be liable on disposals to landfill sites in England, Wales and Northern Ireland. So any contributions received by Environmental Bodies (EBs) in respect of credits claimed on landfill disposals after 31 March 2015 cannot be spent on projects in Scotland.

Therefore, from now, EBs must keep records clearly differentiating contributions received; so be able to show contributions from periods after 31 March 2015 separately from contributions received from periods up to 31 March 2015.  

All LCF projects in Scotland must be completed by 31 March 2017. 

EBs can still register LCF projects based in Scotland with us between April 2015 and 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 LCF funds on projects in the rest of the UK. 

Where an EB does not plan to fund projects in England, Wales or Northern Ireland after 31 March 2017 they will need to transfer any outstanding LCF monies to an EB which will fund projects in the rest of the UK. 

HMRC will consider seeking clawback from the contributing Landfill Operator of any LCF funds held after 31 March 2017 by an EB which funds projects only in Scotland. 

We will share further information on the wind up of the LCF in Scotland when it becomes available.