Following the Budget announcement on 22 November 2017, HM Revenue & Customs have released their Landfill Tax Briefing. The Briefing covers Landfill Tax, the Landfill Communities Fund (LCF), Devolution of Landfill Tax to Wales, on-line service and how to report tax evasion. 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.
The Landfill Communities Fund (LCF)
Maximum percentage credit in 2018-19
As announced at Autumn Budget 2017, the potential value for the LCF for 2018-19 will be set at £33.9 million. The percentage credit that landfill site operators may claim against their Landfill Tax liability for LCF contributions made to Environmental Bodies (EBs) will be maintained at 5.3 per cent from 1 April 2018.
Environmental Body Levy
The ENTRUST levy for 2018-19 is set at 3.27 per cent.
Devolution of Landfill Tax to Wales
The Wales Act 2014 provides for Landfill Tax to be devolved to the Welsh Assembly. This will take effect on 1 April 2018. A briefing was sent to all landfill operators on 15 June 2017. There will also be a two year transition for the Landfill Communities Fund in Wales, as was the case in Scotland when Landfill Tax was devolved to the Scottish Parliament.
HMRC expect to publish draft legislation on the ‘switch-off’ of Landfill Tax and the closure of the LCF in Wales early in December on gov.uk and a further briefing will be issued at that time.