Landfill tax - rates of tax

By Tolley

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Landfill tax - rates of tax
  • Rates of tax
  • Lower rate
  • Exemptions

This guidance note provides an overview of the rates of Landfill Tax and what waste will be liable to each rate. This note should be read in conjunction with the following guidance notes:

Finance Act 1996, Part III (subscription sensitive); Finance Act 2009, s 60; Finance Act 2015, Sch 15; The Landfill Tax Regulations 1996 ; The Landfill Tax (Material from Contaminated Land) (Phasing out of Exemption) Order 2008 ; The Landfill Tax (Prescribed Landfill Site Activities) Order 2009 ; The Landfill Tax (Amendment) Regulations 2010 ; Landfill Tax (Amendment) Regulations 2015 ; The Landfill Tax (Qualifying Material) Order 2011 ; The Landfill Tax (Qualifying Material) (Amendment) Order 2012 ; HMRC Notice LFT1 The Landfill Tax (Qualifying Fines) (No. 2) Order 2015 ; ; LFT2000; De Voil Indirect Tax Service V20.101 (subscription sensitive)
  • Landfill tax - introduction
  • Landfill tax - exemptions
  • Landfill tax - registration
  • Landfill tax - calculating the weight
  • Landfill tax - accounting requirements
  • Landfill tax - accounting for tax
Rates of tax

Landfill tax is charged at two rates and is levied on the overall weight of the taxable products. The following rates are applied:

  • lower rate – this is applied to less polluting waste listed in the Landfill Tax (Qualifying Material) Order 2011 
  • qualifying fines – (see below)
  • standard rate – this is applied to all taxable waste that is not liable to landfill tax at the lower rate

Landfill Tax was devolved to the Scottish Parliament in April 2015 and devolved to the Welsh Assembly from 1 April 2018.

Historical rates of landfill tax

The tax was introduced in October 1996 and the historical, current

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