There was a recent change to the Landfill Tax Regulations 1996 (Regulations), which came into force on 01 November 2010.
In regulation 30(1) of the Principal Regulations (interpretation and general provisions) the words
““income” includes interest”
have now been replaced by the following words :-
““income” includes interest; or
(a) the proportion of any proceeds attributable to the initial acquisition and disposal of an asset (or part of an asset) purchased with a qualifying contribution (or part of a qualifying contribution), or
(b) the proportion of any proceeds attributable to any subsequent acquisition and disposal of an asset (or part of an asset) purchased with the proceeds (or part of the proceeds) of—
(i) the initial acquisition and disposal representing the original qualifying contributions, or
(ii) any subsequent acquisition and disposal representing the original qualifying contributions,
through any number of transactions.”
These changes expressly provide that income includes interest and also a proportion of any income derived from the sale or disposal of an asset that is equal to the proportion of LCF monies that were used to purchase the asset. This now provides absolute clarity that the disposal of assets generates derived income. Further details in respect of this change can be found in Statutory Instrument 2010/2437, which came into force on 1 November 2010, at:
If you have any queries in relation to this please do not hesitate to contact Pardeep Bansi on 01926 488 323.