LFT12040 - Unjust enrichment: The reimbursement ‘scheme’

Schedule 5, Part 1 of the Finance Act 1997 gave the Commissioners powers to introduce a reimbursement scheme (“the Scheme”). The reimbursement provisions are covered in the Landfill Tax Regulations 1996 as Regulations 14A to 14H by the Landfill Tax (Amendment) Regulations 1998 (SI 1998 No 61).

The scheme is not compulsory as it gives those registered landfill site operators who accept they would be unjustly enriched by receiving a tax refund a choice. They can either:

• do nothing; or
• claim the refund. If they do they must abide by the terms of the scheme and reimburse consumers in a set manner. But see LFT12060 when the scheme does not apply.

Refunds must be made either in cash or by cheque - Regulation 14C(c). Credit notes were specifically excluded because consumers may choose not to dispose of waste at the refunding business again.