On 26 May 2016 the UK published a consultation document on changes to the definition of a taxable disposal for the purposes of landfill tax. The government also wants to gather information and views on hazardous waste that comes within the scope of the Qualifying Material Order. The stated aim of the changes is to provide more clarity and certainty to taxpayers.

Landfill tax is charged on waste disposed of at a permitted landfill site and is collected from the operator of the site. The tax charge is based on the weight and type of waste material. There is a standard rate and a lower rate that applies to the least polluting types of waste.

In 2008 the Court of Appeal found that material used on a landfill site as a daily cover or to construct roads on the site was not taxable. Legal challenges from parts of the industry over what constitutes a taxable disposal have led to increased complexity in the tax. The government now aims to clarify the uncertain areas that have led to litigation.

Also the government has identified some types of waste material that are liable to the lower rate of landfill tax despite being classified as hazardous. Information and views are therefore being invited on hazardous waste that is currently liable to the lower rate.

Comments are invited from stakeholders including operators of landfill sites, waste producers including energy generators and other interested groups in the waste industry. It should be noted that the changes do not apply to Scotland because the taxing power in relation to landfill tax has been devolved to the Scottish parliament. The closing date for comments from interested parties is 18 August 2016. If legislative changes are to be made there will be another consultation on draft legislation.