Unspent Funds Guidance

12 Dec 2018

On 1 November 2018 we published our Framework for reviewing, monitoring and managing the level of administration costs and unspent funds claimed and held by Environmental Bodies (EBs).

We would like to remind EBs of the new guidance referred to in the framework relating to unspent funds, and recommend that if they are not currently meeting the level of unspent funds which HMRC would like to see, that they take appropriate action in the coming months to reduce their unspent funds before 31 March 2019 and the end of the Statutory Annual Return (Form 4) period.

Unspent funds are those Landfill Communities Fund (LCF) funds remaining at the end of each reporting period. EBs are required to state within their Annual Return whether these funds are committed to projects or retained for winding up. Any other funds are classed as uncommitted. New guidance has been published that an EB's total unspent funds at year end should be no more than 1.5 times an EB's LCF income (including contributions and transfers) in that year.

You can access the framework in the document on the right hand side of this page or on the Administration Costs and Unspent Funds page of our website.

You can also access the updated guidance on the unspent funds levels on the Guidance page of our website.