When a Landfill Operator (LO) makes a contribution to an Environmental Body (EB), it can only claim tax relief on 90% of the contribution it makes and the LO is left with a 10% funding shortfall. HMRC expect that LOs will absorb this cost, or a portion of it, themselves. Sometimes LOs will require you to find a separate third party - a Contributing Third Party (CTP) to make the 10% payment or a portion of it.
CTP payments should always go direct from the third party to the LO unless there are exceptional circumstances. This is mainly when the EB is fundraising multiple small amounts and direct payments would not be possible. If the EB is acting as an intermediary please contact ENTRUST before any money is raised. Any money raised this way must be kept separate as it is not the EB's own funds and must be clearly identifiable. If you are fundraising to find the CTP payment you should also read the FAQ on the right hand side entitled 'Can an Environmental Body fundraise to find the CTP payment' as there are specific requirements for how money is raised if it is intended for a CTP payment.
To determine whether a potential CTP payment meets ENTRUST's guidance you can use our decision tree document or you can consult our sections 3 and 6 of our Guidance Manual and our CTP Guidance note which you can access through our related documents section at the bottom right hand side of this page. You should also read all of the FAQs relating to CTPs which you can find on the right hand side of this page. Please contact us if you have any further questions.