Finance Bill Tracking Service 2007 | Budget 2007 | Budget Notes

BN61 Landfill Tax: increases to rates

Who is likely to be affected?

1   Businesses registered for landfill tax.

General description of the measure

2   Legislation will be included in Finance Bill 2007 to increase the standard rate of landfill tax from 21 to 24 per tonne, and then to increase it further to 32 per tonne.

3   Legislation will also be included in Finance Bill 2007 to increase the lower rate of landfill tax from 2 to 2.50 per tonne. The lower rate applies to inactive wastes disposed at landfill that are listed in the Landfill Tax (Qualifying Material) Order 1996.

Operative date

4   The 24 per tonne standard rate will apply to any standard rated disposal of waste made, or treated as made, on or after 1 April 2007.

5   The 32 per tonne standard rate and the 2.50 per tonne lower rate will apply respectively to any standard rated and any lower rated disposal of waste made, or treated as made, on or after 1 April 2008.

Current law and proposed revisions

6   Section 42 of the Finance Act 1996 specifies the rates of landfill tax, and will be amended to reflect the new rates.

Further advice

7   If you have any questions about this change, please contact the National Advice Service on 0845 010 900. Information about Budget measures is available on the HM Revenue & Customs website at www.hmrc.gov.uk