Legalize / United Kingdom / Wales / Act of Senedd Cymru

Landfill Disposals Tax (Wales) Act 2017

Type Act of Senedd Cymru

Publication 2017-09-07

State In force

Jurisdiction Wales

Department Statute Law Database

Source legislation.gov.uk

Reform history JSON API

PART 1 — OVERVIEW

Overview of Act

1

(1) This Part provides an overview of this Act.

(2) Part 2—

(a) makes provision for a tax (landfill disposals tax) to be charged on taxable disposals,

(b) explains what a taxable disposal is, and

(3) Part 3 makes provision about how the tax is to be charged on taxable disposals made at authorised landfill sites. It includes provision about—

(a) the persons on whom the tax is chargeable,

(b) how the amount of tax chargeable on a taxable disposal is to be calculated,

(d) registration and accounting requirements, and

(e) payment, recovery and repayment of the tax.

(4) Part 4 makes provision about how the tax is to be charged on taxable disposals made at places other than authorised landfill sites. It includes provision about—

(a) how the amount of tax chargeable on a taxable disposal is to be calculated,

(b) the persons on whom the tax may be charged,

(d) payment of the tax, and

(e) late payment interest on unpaid tax.

(5) Part 5 makes supplementary provision in connection with the tax. It includes provision—

(a) enabling regulations to be made about circumstances in which a person is to be entitled to credit in respect of the tax,

(b) about the creation of non-disposal areas within authorised landfill sites,

(d) about penalties,

(e) about the application of the provisions of this Act and the Tax Collection and Management (Wales) Act 2016 (anaw 6) in special cases (for example, in the case of corporate groups, partnerships and unincorporated associations), and

(f) about other miscellaneous matters.

(6) Part 5 also makes provision for a Landfill Disposals Tax Communities Scheme.

(7) Part 6 contains provision that applies generally for the purposes of this Act (including provision about the interpretation of this Act).

PART 2 — THE TAX AND TAXABLE DISPOSALS

CHAPTER 1 — LANDFILL DISPOSALS TAX

The tax

2

(1) A tax, to be known as landfill disposals tax, is to be charged on taxable disposals in accordance with this Act.

(2) The Welsh Revenue Authority (“WRA”) is responsible for the collection and management of the tax.

(3) References in this Act to tax (or to the tax) are references to landfill disposals tax.

CHAPTER 2 — TAXABLE DISPOSALS

Taxable disposals

3

(1) A taxable disposal is made when all of the following conditions are met.

(2) Condition 1 is that there is a disposal of material by way of landfill (see section 4).

(3) Condition 2 is that either—

(a) the land where the disposal is made is, or forms part of, an authorised landfill site (see section 5(1)), or

(b) the disposal requires an environmental permit (see section 5(2)) but the land where it is made is not, and does not form part of, an authorised landfill site.

(4) Condition 3 is that the disposal is a disposal of the material as waste (see sections 6 and 7).

(5) Condition 4 is that the disposal is made in Wales.

(6) See also section 8 for specified landfill site activities that are to be treated as taxable disposals (whether or not the above conditions are met).

Disposal of material by way of landfill

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(1) There is a disposal of material by way of landfill if material is—

(a) deposited on the surface of land or on a structure set into the surface, or

(b) deposited under the surface of land (for example, in a cavity such as a cavern or mine).

(2) Subsection (1) applies whether or not the material is placed in a container before it is deposited.

(3) Regulations may modify the meaning of a disposal of material by way of landfill (including by amending this section or any other enactment relating to the tax).

Authorised landfill sites and environmental permits

5

(1) Land is an authorised landfill site if an environmental permit authorising disposals of material by way of landfill is in force in relation to the land.

(2) An environmental permit is a permit granted under regulations made under section 2 of the Pollution Prevention and Control Act 1999 (c. 24).

Disposal of material as waste

6

(1) A disposal of material is a disposal of it as waste if the person responsible for the disposal intends to discard the material.

(2) An intention to discard material may be inferred from the circumstances of its disposal, and in particular from the fact (where it is the case) that the material is deposited in a landfill disposal area.

(3) The following are not to be treated as inconsistent with an intention to discard material—

(a) making a temporary use of the material, or a use of the material which is incidental to its disposal by way of landfill;

(b) deriving a benefit from the material or from anything emitted by it (for example, using gas produced by its decomposition in electricity generation).

(4) Regulations may modify the meaning of a disposal of material as waste (including by amending this section or any other enactment relating to the tax).

Disposal of material as waste: person responsible for disposal

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(1) This section identifies the person responsible for a disposal of material for the purposes of section 6.

(2) In the case of a disposal made at an authorised landfill site, the person responsible for the disposal is the person who is the operator of the site at the time of the disposal.

(3) But if the disposal is made without the permission of the operator, the person responsible for the disposal is the person who makes the disposal.

(4) The operator of an authorised landfill site is the holder of the environmental permit authorising disposals of material by way of landfill at the site.

(5) In the case of a disposal made at a place that is not, and does not form part of, an authorised landfill site, the person responsible for the disposal is the person who makes the disposal.

Landfill site activities to be treated as taxable disposals

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(1) The carrying out of a specified landfill site activity in Wales is to be treated as a taxable disposal of the material in relation to which the activity is carried out (whether or not the conditions in section 3 are met).

(2) The taxable disposal is to be treated as being made when the specified landfill site activity is first carried out in relation to the material.

(3) The following are specified landfill site activities when carried out at an authorised landfill site—

(a) using material to create or maintain a temporary road giving access to a landfill disposal area;

(b) using material to create or maintain a temporary hard standing;

(d) using material (other than naturally occurring material extracted from the site) to create or maintain a temporary screening bund;

(e) using material to cover a landfill disposal area during a temporary cessation in landfill disposals;

(f) placing material in a landfill disposal area to provide a base for, or prevent damage to, anything used to line, cap or drain that area;

(g) keeping material in a non-disposal area beyond the end of the maximum period specified in the notice designating the area under section 55, unless the material is dealt with in accordance with an agreement under section 56(4)(a);

(h) storing ashes (for example, fly ash and bottom ash);

(i) using material in restoration work.

(4) In subsection (3)—

“cell bund” (“bwnd cell”) means a structure within a landfill disposal area which separates quantities of material deposited in that area;

“hard standing” (“arwyneb solet”) means a base on which a landfill site activity is carried out;

“restoration work” (“gwaith adfer”) means work carried out to restore an authorised landfill site (or any part of the site) to a use other than making landfill disposals; but where a landfill disposal area is capped, work carried out to restore that area is restoration work only if it is carried out after the area has been capped;

“screening bund” (“bwnd sgrinio”) means a structure, whether above or below ground, for protecting or concealing a landfill site activity or reducing noise.

(5) Regulations may—

(a) provide that a landfill site activity is to be a specified landfill site activity,

(b) modify the description of a specified landfill site activity, or

(6) The regulations may amend this section or any other enactment relating to the tax.

CHAPTER 3 — EXEMPT DISPOSALS

Exemptions: general

9

(1) This Chapter provides exemption from tax for certain disposals of material which would otherwise be treated as taxable disposals.

(2) A disposal of material that is exempt from tax is not a taxable disposal.

(3) In this Chapter, references to a disposal of material include the carrying out of a specified landfill site activity in relation to material.

Multiple disposals of material at same site

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A disposal of material is exempt from tax to the extent that—

(a) it is a disposal of material which has already been included in a taxable disposal—

(i) which was made at an authorised landfill site, and

(ii) in respect of which tax was chargeable, and

(b) it is made at the same authorised landfill site as that taxable disposal.

Pet cemeteries

11

(1) A disposal of material is exempt from tax if—

(a) it is a disposal of material consisting entirely of the remains of dead pets (and any container or material in which the remains are contained), and

(b) it is made at an authorised landfill site which meets the condition in subsection (2).

(2) The condition is that no landfill disposals were made at the site during the relevant period other than disposals of material consisting entirely of the remains of dead pets (and any container or material in which the remains are contained).

(3) The relevant period is the period which—

(a) begins with the day on which this section comes into force, or on which the site becomes an authorised landfill site, whichever is later, and

(b) ends immediately before the disposal mentioned in subsection (1).

Power to modify exemptions

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(1) Regulations may—

(a) create an additional exemption from tax,

(b) modify an existing exemption, or

(2) The regulations may provide for an exemption to apply subject to conditions (for example, a condition requiring WRA to be notified before a disposal is made).

(3) The regulations may amend any enactment relating to the tax.

PART 3 — TAXABLE DISPOSALS MADE AT AUTHORISED LANDFILL SITES

CHAPTER 1 — PERSONS CHARGEABLE TO TAX

Persons chargeable to tax

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Tax chargeable on a taxable disposal of material made at an authorised landfill site is chargeable on the person who is the operator of the site at the time of the disposal (whether or not the operator makes the disposal or permits it to be made).

CHAPTER 2 — TAX CHARGEABLE ON TAXABLE DISPOSALS

Calculation of tax chargeable

Calculation of tax chargeable on taxable disposal

14

(1) This section applies to a taxable disposal of material made at an authorised landfill site.

(2) The amount of tax chargeable on the disposal is to be calculated by multiplying the taxable weight of the material in tonnes by the standard rate.

(3) The standard rate is the rate per tonne prescribed for the purposes of subsection (2) in regulations.

(4) Subsection (2) does not apply to the disposal if the material disposed of—

(a) consists entirely of one or more qualifying materials (see section 15), or

(b) is a qualifying mixture of materials (see section 16).

(5) The amount of tax chargeable on a disposal of that description is instead to be calculated by multiplying the taxable weight of the material in tonnes by the lower rate.

(6) The lower rate is the rate per tonne prescribed for the purposes of subsection (5) in regulations.

(7) Regulations under subsection (3) or (6) may prescribe different rates for different descriptions of material.

(8) See section 18 for provision about how the taxable weight of the material in a taxable disposal is to be calculated.

Qualifying materials and qualifying mixtures of materials

Qualifying material

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(1) Qualifying material is material in respect of which the following requirements are met.

Requirement 1 The material is specified in the Table in Schedule 1.

Requirement 2 Each condition in the Table in Schedule 1 that applies in respect of the material is met (if any).

Requirement 3 There is—if a written description of the material is required by virtue of section 34(1)⁠(c)(ii) of the Environmental Protection Act 1990 (c. 43), a written description of the kind required, orif no written description of the material is required by virtue of that section, other evidence,from which it can be determined that requirements 1 and 2 are met.

(2) Regulations may amend Schedule 1.

Qualifying mixtures of materials

16

(1) A qualifying mixture of materials is a mixture in respect of which the following requirements are met.

Requirement 1 The mixture consists of—one or more qualifying materials, anda small amount of one or more non-qualifying materials that is incidental to the qualifying materials.

Requirement 2 There is—if a written description of the mixture is required by virtue of section 34(1)⁠(c)(ii) of the Environmental Protection Act 1990 (c. 43), a written description of the kind required, orif no written description of the mixture is required by virtue of that section, other evidence,from which it can be determined that requirement 1 is met.

Requirement 3 The non-qualifying materials have not been mixed with the qualifying materials deliberately for the purposes of—disposal, ormatters preparatory to disposal.

Requirement 4 The non-qualifying materials do not include any material prescribed as material that must not be included in a qualifying mixture of materials.

Requirement 5 The mixture is not hazardous waste within the meaning of Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste.

Requirement 6 No arrangements have been made in respect of the mixture that have, as their main purpose, or as one of their main purposes, the avoidance of liability to the tax.

Requirement 7 If the mixture consists entirely of fines, any requirement prescribed under section 17(1) (either in relation to mixtures generally or in relation to mixtures of that particular description) is met in respect of the mixture.

(2) For the purposes of requirement 1—

(a) both the weight and the volume of the non-qualifying materials must be taken into account in determining whether the amount of those materials is to be treated as a small amount;

(b) the potential that the non-qualifying materials have to cause harm must be taken into account in determining whether those materials are to be treated as incidental to the qualifying materials.

(3) Regulations may provide that an amount of non-qualifying materials is not to be treated as a small amount for the purposes of requirement 1 if it constitutes more than a prescribed percentage of the mixture of materials (by weight or volume or both).

(4) Regulations may amend this section to—

(a) add a further requirement to subsection (1),

(b) modify an existing requirement,

(d) make further provision about matters that must or may be taken into account for the purposes of determining whether a requirement is met, or modify or remove existing provision about those matters.

(5) In this section—

“arrangement” (“trefniant”) has the meaning given in section 81B(3) of TCMA;

“fines” (“gronynnau mân”) has the meaning given in section 17(6);

“non-qualifying material” (“deunydd anghymwys”) means a material that is not a qualifying material;

“prescribed” (“rhagnodedig”) means prescribed in regulations.

Qualifying mixture of materials: fines

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(1) Regulations may prescribe requirements that must be met (in addition to requirements 1 to 6 in section 16) in order for a mixture of materials consisting entirely of fines to be treated as a qualifying mixture of materials.

(2) The regulations may provide (among other things)—

(a) that the mixture must originate in a prescribed way (for example, by means of a prescribed waste treatment process);

(b) that there must be prescribed evidence regarding the nature of the fines in the mixture;

(c) that prescribed steps must have been taken in relation to the mixture (either by the operator of an authorised landfill site or by any other person);

(d) that there must be prescribed evidence regarding the taking of those steps;

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