Requirement to give security for environmental taxes
Requirement to give security for environmental taxes

The following Environment practice note provides comprehensive and up to date legal information covering:

  • Requirement to give security for environmental taxes
  • Notice of requirement to give security
  • The amount of security
  • Acceptable forms of security
  • Duration
  • Use
  • Right to appeal

STOP PRESS: This overview is being updated in light of the Finance Act 2018 and other amendments to landfill tax, the aggregates levy and climate change levy coming into force on 1 April 2018.

HMRC has power to require security from a registered person if it considers that there is a risk that a business will not fully meet its obligations to pay:

  1. Insurance Premium Tax

  2. Landfill Tax

  3. Aggregates Levy

  4. Climate Change Levy

It is a criminal offence to continue to trade following the issue of a Notice of Requirement to give security. Specific offences are:

  1. Insurance Premium Tax—entering into taxable insurance contracts (as defined by Finance Act 1994, s 73(1)) without giving security

  2. Landfill Tax—carrying out taxable activities (as defined by Finance Act 1996, s 69(1)) without giving security

  3. Aggregates Levy—being responsible for commercial exploitation of any aggregates as defined by Finance Act 2001, s 17 within the UK without giving security

  4. Climate Change Levy—being liable to account for the levy on a taxable supply or being liable to account for the levy on a taxable supply (as defined by Finance Act 2000, Pt II, Sch 6, Pt XIII) made

Popular documents