Landfill tax - exemptions

By Tolley

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

  • Landfill tax - exemptions
  • Dredgings
  • Mining and quarrying
  • Filling of quarries
  • Pet cemeteries
  • Visiting forces

This guidance note provides an overview of the types of materials that would be exempt from Landfill Tax when they are disposed of in a landfill site. This note should be read in conjunction with the Landfill tax - introduction, Landfill tax - rates of tax , Landfill tax - Registration, Landfill tax - calculating the weight, Landfill tax - accounting requirements and Landfill tax - accounting for tax 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 ; The Landfill Tax (Qualifying Fines) (No. 2) Order 2015 Excise Notice LFT1: a general guide to Landfill Tax ; LFT2000; LFT4000; De Voil Indirect Tax Service V20.101 (subscription sensitive)

If dredging is used to remove waste from inland waterways and harbours and it is disposed of in a landfill site, then the waste will be exempt from landfill tax. The following criteria will need to be satisfied in order for the material to be exempt:

  • the material will need to have been dredged from one of the following:
    • river
    • canal
    • watercourse. In order for it to be described as a watercourse it must be possible to demonstrate that a body of water has a natural source of surface or underground water flow, under the action of gravity; a reasonably well defined channel of bed and banks; a meeting point with another watercourse or tidal waters.
    • dock

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