Landfill tax: increase to standard rate

Who is likely to be affected?

1. Businesses registered for landfill tax.

General description of the measure

2. The standard rate of landfill tax will be increased from £21 per tonne to £24 per tonne. The lower rate of tax, which applies to inactive wastes disposed at landfill, as listed in the Landfill Tax (Qualifying Material) Order 1996, remains unchanged at £2 per tonne.

Operative date

3. The £24 per tonne rate applies to any standard rated disposal of waste made, or treated as made, on or after 1 April 2007.

Current law and proposed revisions

4. Section 42 of the Finance Act 1996 specifies the rates of landfill tax, and will be amended in the Finance Bill 2007.

Further advice

5. If you have any questions about this change, please contact the HMRC National Advice Service on 0845 010 9000.