Legalize / United Kingdom / Scotland / Act of the Scottish Parliament

Landfill Tax (Scotland) Act 2014

Type Act of the Scottish Parliament

Publication 2014-01-21

State In force

Jurisdiction Scotland

Department Statute Law Database

Source legislation.gov.uk

Reform history JSON API

Part 1 — Scottish landfill tax

The tax

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(1) A tax (to be known as Scottish landfill tax) is to be charged in accordance with this Act.

(2) The Tax Authority is to be responsible for the collection and management of the tax.

Overview

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This Act is arranged as follows—

Part 2 contains provision for the key concepts underlying the tax including—what is a taxable disposal,what disposals are exempt from tax,how to calculate the amount of tax,who is liable to pay the tax,when credit is available in relation to the tax,

Part 3 contains provision about the administration of the tax,

Part 4 contains provision about the Tax Authority and definitions of expressions used in the Act,

Part 5 contains provision about subordinate legislation powers and commencement as well as other final provisions.

Part 2 — Key concepts

Taxable disposals

Charge to tax

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(1) Tax is to be charged on a taxable disposal made in Scotland.

(2) A disposal is a taxable disposal if—

(a) it is a disposal of material as waste (see section 4),

(b) it is made by way of landfill (see section 5), and

(3) For the purposes of subsection (2)(c), a disposal is made at a landfill site if the land on or under which it is made constitutes or falls within land which is a landfill site at the time of the disposal.

Disposal of material as waste

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(1) A disposal of material is a disposal of it as waste if the person making the disposal does so with the intention of discarding the material.

(2) The fact that the person making the disposal or any other person could benefit from or make use of the material is irrelevant.

(3) Where a person makes a disposal on behalf of another person, for the purposes of subsections (1) and (2) the person on whose behalf the disposal is made is to be treated as making the disposal.

(4) The reference in subsection (3) to a disposal on behalf of another person includes references to a disposal—

(a) at the request of another person,

(b) in pursuance of a contract with another person.

Disposal by way of landfill

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

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

(b) it is deposited under the surface of land.

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

(3) Subsection (1)(b) applies whether the material—

(a) is covered with earth after it is deposited, or

(b) is deposited in a cavity (such as a cavern or mine).

(4) If material is deposited on the surface of land or on a structure set into the surface with a view to it being covered with earth, the disposal must be treated as made when the material is deposited and not when it is covered.

(5) The Scottish Ministers may, by order, make provision varying the meaning of the disposal of material by way of landfill.

(6) The order may modify any enactment (including this Act).

(7) In this section, “land” includes land covered by water where the land is above the low water mark of ordinary spring tides.

(8) In this section, “earth” includes similar matter (such as sand or rocks).

Prescribed landfill site activities to be treated as disposals

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(1) The Scottish Ministers may, by order, prescribe a landfill site activity for the purposes of this section.

(2) A “landfill site activity” means any of the following descriptions of activity, or an activity that falls within any of the following descriptions—

(a) using or otherwise dealing with material at a landfill site,

(b) storing or otherwise having material at a landfill site.

(3) If a prescribed landfill site activity is carried out at a landfill site, the activity is to be treated—

(a) as a disposal of the material involved in the activity as waste,

(b) as a disposal of that material made by way of landfill, and

(4) An order under this section may prescribe a landfill site activity by reference to conditions.

(5) Those conditions may, in particular, relate to either or both of the following—

(a) whether the landfill site activity is carried out in a designated area of a landfill site,

(b) whether there has been compliance with a requirement to give information relating to—

(i) the landfill site activity, or

(ii) the material involved in the landfill site activity,

including information relating to whether the activity is carried out in a designated area of a landfill site.

(6) In subsection (5), “designated area” means an area of a landfill site designated in accordance with—

(a) an order under this section, or

(b) regulations under section 30, 32 or 33.

(7) An order under this section may modify any enactment (including this Act).

Exemptions

Material removed from water

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(1) A disposal is not a taxable disposal for the purposes of this Act if it is shown to the satisfaction of the Tax Authority that the disposal is of material all of which—

(a) has been removed (by dredging or otherwise) from water falling within subsection (2), and

(b) formed part of or projected from the bed of the water concerned before its removal.

(2) Water falls within this subsection if it is—

(a) a river, canal or watercourse (whether natural or artificial), or

(b) a dock or harbour (whether natural or artificial).

(3) A disposal is not a taxable disposal for the purposes of this Act if it is shown to the satisfaction of the Tax Authority that the disposal is of material all of which—

(a) has been removed (by dredging or otherwise) from water falling within the approaches to a harbour (whether natural or artificial),

(b) has been removed in the interests of navigation, and

(4) A disposal is not a taxable disposal for the purposes of this Act if it is shown to the satisfaction of the Tax Authority that the disposal is of material all of which—

(a) consists of naturally occurring mineral material, and

(b) has been removed (by dredging or otherwise) from the sea in the course of commercial operations carried out to obtain substances such as sand or gravel from the seabed.

(5) A disposal is not a taxable disposal for the purposes of this Act if it is shown to the satisfaction of the Tax Authority that the disposal is of material all of which comprises material falling within subsection (1) or (3) and other material which has been added to that material for the purpose of securing that it is not liquid waste.

Material resulting from mining and quarrying

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(1) A disposal is not a taxable disposal for the purposes of this Act if it is shown to the satisfaction of the Tax Authority that the disposal is of material all of which fulfils each of the conditions set out in subsection (2).

(2) The material—

(a) must result from commercial mining operations (whether the mining is deep or open-cast) or from commercial quarrying operations,

(b) must be naturally occurring material extracted from the earth in the course of the operations, and

(c) must not have been subjected to, or result from, a non-qualifying process carried out at any stage between the extraction and the disposal.

(3) A non-qualifying process is—

(a) a process separate from the mining or quarrying operations, or

(b) a process forming part of those operations and permanently altering the material's chemical composition.

Disposal of qualifying material at former quarries

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(1) A disposal is not a taxable disposal for the purposes of this Act if it is—

(a) of material all of which is treated for the purposes of section 13 as qualifying material, and

(b) made at a qualifying landfill site.

(2) A landfill site is a qualifying landfill site for the purposes of this section if at the time of the disposal—

(a) the landfill site is or was a quarry,

(b) subject to subsection (3), it is a requirement of planning permission in respect of the land in which the quarry or former quarry is situated that it be wholly or partially refilled, and

(c) subject to subsection (4), the authorisation permitting disposals on or in the land comprising the site permits only the disposal of material which constitutes qualifying material.

(3) Where a quarry—

(a) was in existence before 1 October 1999, and

(b) quarrying operations ceased before that date,

the requirement referred to in subsection (2)(b) must have been imposed on or before that date.

(4) Where an authorisation permitting disposals on or in the land does not (apart from the application of this subsection) meet the requirements of subsection (2)(c) and an application has been made to vary the authorisation in order to meet them, it is to be deemed to meet them for the period before—

(a) the application is disposed of, or

(b) the second anniversary of the making of the application if it occurs before the application is disposed of.

(5) For the purposes of subsection (4), an application is disposed of if—

(a) it is granted,

(b) it is withdrawn,

(d) a time limit for appeal against refusal expires without an appeal having been commenced, or

(e) an appeal against refusal is dismissed or withdrawn and there is no further right of appeal.

Pet cemeteries

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(1) A disposal is not a taxable disposal for the purposes of this Act if—

(a) the disposal is of material consisting entirely of the remains of dead domestic pets, and

(b) the landfill site at which the disposal is made fulfils the condition set out in subsection (2).

(2) The condition is that during the relevant period—

(a) no landfill disposal was made at the site, or

(b) the only landfill disposals made at the site were of material consisting entirely of the remains of dead domestic pets.

(3) For the purposes of subsection (2), the relevant period—

(a) begins with the coming into force of this section or, if later, with the coming into force in relation to the site of the authorisation mentioned in section 12, and

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

Power to vary what is a taxable disposal

Taxable disposals: power to vary

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(1) The Scottish Ministers may, by order, make provision to produce the result that—

(a) a disposal which would otherwise be a taxable disposal is not a taxable disposal,

(b) a disposal which would otherwise not be a taxable disposal is a taxable disposal.

(2) The order may, in particular—

(a) confer exemption by reference to certificates issued by the Tax Authority and to conditions set out in certificates,

(b) allow the Tax Authority to direct requirements to be met before certificates can be issued.

(3) The order may modify any enactment (including this Act).

Landfill sites and operators of landfill sites

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(1) Land is a landfill site at a given time if at that time an authorisation is in force in relation to the land and authorises disposals on or under the land.

(2) The operator of a landfill site at a given time is the person who is at the time concerned the holder of the authorisation.

(3) Land is to be treated as a landfill site at a given time if at that time—

(a) disposals of material are made on or under the land,

(b) an authorisation is required in relation to those disposals, and

(4) In determining for the purposes of subsection (3) whether an authorisation is required in relation to disposals of material, no account is to be taken of any prohibition or restriction under the Regulatory Reform (Scotland) Act 2014 that would prevent an authorisation being granted in relation to the disposal of the material by way of landfill.

Calculation of tax

Amount of tax

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(1) The amount of tax charged on a taxable disposal is to be found by multiplying the standard rate by the weight in tonnes of the material disposed of.

(2) The standard rate is the sum specified for the purposes of this section in an order made by the Scottish Ministers.

(3) Where the material disposed of consists entirely of qualifying material, the amount of tax charged is to be found by multiplying the lower rate by the weight in tonnes of the material disposed of.

(4) Qualifying material is material listed (in one or more category) in an order made by the Scottish Ministers.

(5) The lower rate is the sum specified for the purposes of this section in an order made by the Scottish Ministers.

(6) An order under subsection (5) may set different lower rates for different categories of qualifying material.

(7) The Scottish Ministers must—

(a) set criteria to be considered in determining from time to time what material is to be listed as qualifying material,

(b) keep those criteria under review,

(d) publish the criteria (and any revised criteria).

(8) In determining from time to time what material is to be listed as qualifying material, the Scottish Ministers must have regard to—

(a) the criteria (or revised criteria) published under subsection (7)(d), and

(b) any other factors they consider relevant.

Qualifying material: special provisions

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(1) This section applies for the purposes of section 13.

(2) The Tax Authority may direct that where material is disposed of it must be—

(a) treated as qualifying material if it would in fact be such material but for a small quantity of non-qualifying material,

(b) treated as qualifying material of one category if it would in fact be such material but for a small quantity of qualifying material of another category.

(3) The Tax Authority may at the request of a person direct that where there is a disposal in respect of which the person is liable to pay tax the material disposed of is to be—

(a) treated as qualifying material if it would in fact be such material but for a small quantity of non-qualifying material,

(b) treated as qualifying material of one category if it would in fact be such material but for a small quantity of qualifying material of another category.

(4) Whether a quantity of non-qualifying material or (as the case may be) qualifying material of another category is small is to be determined in accordance with the terms of the direction.

(5) A direction under subsection (3) may apply to all disposals in respect of which a person is liable to pay tax or to such of them as are identified in the direction.

(6) If a direction under subsection (3) applies to a disposal, any direction under subsection (2) is not to apply to it.

(7) The Scottish Ministers may, by order, provide that material must not be treated as qualifying material (or as qualifying material of a particular category) for the purposes of this section unless conditions specified in the order are fulfilled.

(8) A condition specified under subsection (7) may relate to any matter the Scottish Ministers think fit (such as the production of a document which includes a statement of the nature of the material).

Weight of material disposed of

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(1) The weight of material disposed of on a taxable disposal is to be determined in accordance with regulations made by the Scottish Ministers.

(2) The regulations may—

(a) specify rules for determining the weight,

(b) authorise rules for determining the weight to be specified by the Tax Authority in a manner set out in the regulations,

(c) authorise rules for determining the weight to be agreed by the person liable to pay the tax and a designated officer.

(3) The regulations may, in particular, specify, or authorise the specification or agreement of, rules about—

(a) the method by which the weight is to be determined,

(b) the time by reference to which the weight is to be determined,

(4) The regulations may include provision that a specification authorised under subsection (2)(b) may provide—

(a) that it is to have effect only in relation to disposals of such descriptions as may be set out in the specification,

(b) that it is not to have effect in relation to particular disposals unless the Tax Authority is satisfied that such conditions as may be set out in the specification are met in relation to the disposals,

and the conditions may be framed by reference to such factors as the Tax Authority thinks fit (such as the consent of a designated officer to the specification having effect in relation to disposals).

(5) The regulations may include provision that—

(a) where rules are agreed as mentioned in subsection (2)(c), and

(b) the Tax Authority believes that they should no longer be applied because they do not give an accurate indication of the weight or they are not being fully observed or for some other reason,

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