Landfill tax changes
New legislation came into force on 1 April 2010 in relation to Landfill tax. The legislation follows the announcement by the Chancellor in the Budget of a reduction in the maximum percentage that landfill site operators may claim against their annual landfill tax liability for contributions to environmental bodies under the Landfill Communities Fund (LCF).
The LCF redresses some of the environmental costs of landfill by improving the environment in the vicinity of landfill sites. Projects benefiting from LCF funding include those that are involved with the reclaiming of land, improvements to local community facilities, repairs to places of worship and habitat creation in support of biodiversity.
The maximum percentage is to be reduced to 5.5% (from 6%). The total amount of money given to the LCF is still expected to increase as a result of the increase in the standard rate of landfill tax from 1 April 2010. HMRC estimates that up to £74 million may be contributed to the fund in 2010/11 tax year.