The disposal of waste ‘by way of landfill’ has been subject to tax since 1996 and is now taxed at the rate of £2 per tonne for inert materials and £24 per tonne for active materials.
Recently, the courts had to consider the issue of whether waste disposed of by the operators of landfill sites had to be treated as landfill when it was used for other purposes. In the case in point, some of the waste was used for the ancillary purpose of making roads and some as overnight cover for the daily waste.
In the view of the court, there was no principle that said that waste remained waste no matter to what use it was put – where the waste is used for other purposes, landfill tax is not payable.
This decision has potential implications for anyone who operates a landfill site.
Partner Note
HMRC v Waste Recycling Group Ltd. See Indirect Tax Voice, August 2008 p3.