The Landfill Tax Regulations 1996

The Commissioners of Customs and Excise, in exercise of the powers conferred on them by sections 47(9), 48(1) and (2), 49, 51(1) to (6), 52(1) to (3), 53(1) to (4), 58(1) and (4) to (6), 61(2), 62(1) to (3) and (5) and (6) and 68(1) to (6) of, and paragraphs 2(1) to (3), 13(1) and (6), 14(5), 20(3), 23(1), 42(1) to (5) and 43(1) to (5) of Schedule 5 to, the Finance Act 1996[^f00001], hereby make the following Regulations:

PART I — PRELIMINARY

Citation and commencement

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These Regulations may be cited as the Landfill Tax Regulations 1996 and shall come into force on 1st August 1996.

Interpretation

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• (1) In these Regulations—

• ...

• “accounting period” has the meaning given in regulation 10;

• “the Act” means the Finance Act 1996;

• “Collector” means a Collector, Deputy Collector or Assistant Collector of Customs and Excise;

• “credit”, except where the context otherwise requires, means credit which a person is entitled to claim under Part IV of these Regulations;

• “disposal” and “disposed of” shall be construed in accordance with section 40A of the Act (including any order made under that section or section 46 of the Act) (save in regulation 21(4)(c));

• “environmental regulator” means the Environment Agency in England and the Department of Agriculture, Environment and Rural Affairs, or any agency thereof, in Northern Ireland;

• “effective date of registration” means the date determined in accordance with section 47 of the Act upon which the person was or should have been registered;

• “landfill invoice” means an invoice of the description in regulation 37;

• “landfill site” has the meaning given in section 40(4) of the Act;

• “landfill tax account” has the meaning given in regulation 12;

• “landfill tax bad debt account” has the meaning given in regulation 26;

• “LOI percentage” means the amount of non-qualifying material contained in fines, as indicated by the percentage of the mass of those fines lost on ignition;

• “LOI test” means a test to determine the LOI percentage of fines, conducted in accordance with the terms of a published notice made under the Landfill Tax (Qualifying Fines) Order 2015 or the Landfill Tax (Qualifying Fines) (No. 2) Order 2015;

• “quarter” means a period of three months ending at the end of March, June, September or December;

• “registered person” means a person who is registered under section 47 of the Act and “register” and “registration” shall be construed accordingly;

• “registrable person” has the meaning given in section 47(10) of the Act;

• “registration number” means the identifying number allocated to a registered person and notified to him by the Commissioners;

• “return” means a return which is required to be made in accordance with regulation 11;

• “taxable business” means a business or part of a business in the course of which taxable activities are carried out;

• “transfer note” means written information or a transfer note within the meaning of—the Waste (England and Wales) Regulations 2011, where the transferor of material to a landfill site is a person in England and Wales;the Controlled Waste (Duty of Care) Regulations (Northern Ireland) 2002,where the transferor of material to a landfill site is a person in Northern Ireland;the Environmental Protection (Duty of Care) (Scotland) Regulations 2014, where the transferor of material to a landfill site is a person in Scotland.

• “working day” means any day of the week except Saturday and Sunday and a bank holiday or public holiday, in either case, for England.

• (2) In these Regulations any question whether a person is connected with another shall be determined in accordance with section 1122 of the Corporation Tax Act 2010.

• (3) Any reference in these Regulations to “this Part” is a reference to the Part of these Regulations in which that reference is made.

• (4) Any reference in these Regulations to a form prescribed in the Schedule to these Regulations shall include a reference to a form which the Commissioners are satisfied is a form to the like effect.

Designation, direction or approval

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Any designation, direction or approval by the Commissioners under or for the purposes of these Regulations shall be made or given by a notice in writing.

PART II — REGISTRATION AND PROVISION FOR SPECIAL CASES

Notification of liability to be registered

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• (1) A person who is required by section 47(3) of the Act to notify the Commissioners of his intention to carry out taxable activities shall do so on the form numbered 1 in the Schedule to these Regulations.

• (1A) A registered person who is required by section 47(3A) of the Act to notify the Commissioners of their intention to carry out taxable activities shall do so by providing the information prescribed by paragraph (6).

• (2) Where a notification referred to in this regulation is made by a person who operates or intends to operate more than one landfill site or place other than a landfill site, it shall include the particulars set out on the form numbered 2 in the Schedule to these Regulations.

• (3) Where a notification referred to in this regulation is made by a partnership, it shall include the particulars set out on the form numbered 3 in the Schedule to these Regulations.

• (4) Subject to paragraph (5), a notification referred to in this regulation shall be made within 30 days of the earliest date ... on which the person either forms or continues to have the intention to carry out taxable activities.

• (5) The Commissioners may allow a registered person additional time to comply with paragraph (4) in relation to a notification made under section 47(3A) of the Act.

• (6) For the purposes of paragraph (1A), the prescribed information required from a registered person is—

• (a) their name and address and, where applicable, company registration number;

• (b) their contact telephone number;

• (c) if a business, whether they are a sole trader, partnership or a company;

• (d) the address of each place other than a landfill site at which they intend to carry out taxable activities;

• (e) the details of any licence or permit issued by an environmental regulator in respect of each place;

• (f) whether any of the intended disposals are within the scope of any published guidance issued by an environmental regulator in the form of a regulatory position statement;

• (g) if any disposals have already taken place at any place other than a landfill site at the time of notification, the address of each place at which such disposal occurred and the volume of the material disposed of;

• (h) a signed declaration that the information provided under the preceding sub-paragraphs is true and complete.

Changes in particulars

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• (1) A person who has made a notification under regulation 4, whether or not it was made in accordance with paragraph (4) of that regulation, shall, within 30 days of—

• (a) discovering any inaccuracy in; or

• (b) any change occurring which causes to become inaccurate,

any of the information which was contained in or provided with the notification, notify the Commissioners in writing and furnish them with full particulars.

• (2) Without prejudice to paragraph (1) above, a registrable person shall, within 30 days of any change occurring in any of the circumstances referred to in paragraph (4) below, notify the Commissioners in writing and furnish them with particulars of—

• (a) the change; and

• (b) the date on which the change occurred.

• (3) A registrable person who discovers that any information contained in or provided with a notification under paragraph (1) or (2) above was inaccurate shall, within 30 days of his discovering the inaccuracy, notify the Commissioners in writing and furnish them with particulars of—

• (a) the inaccuracy;

• (b) the date on which the inaccuracy was discovered;

• (c) how the information was inaccurate; and

• (d) the correct information.

• (4) The circumstances mentioned in paragraph (2) above are the following circumstances relating to the registrable person or any taxable business carried on by him:

• (a) his name, his trading name (if different), his address and the landfill sites he operates;

• (b) his status, namely whether he carries on business as a sole proprietor, body corporate, partnership or other unincorporated body;

• (c) in the case of a partnership, the name and address of any partner.

• (5) Any person failing to comply with a requirement imposed in any of paragraphs (1) to (3) above shall be liable to a penalty of £250.

• (6) Where in relation to a registered person the Commissioners are satisfied that any of the information recorded in the register is or has become inaccurate they may correct the register accordingly.

• (7) For the purposes of paragraph (6) above, it is immaterial whether or not the registered person has notified the Commissioners of any change which has occurred in accordance with paragraphs (1) to (3) above.

Notification of cessation of taxable activities

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A person who is required by section 47(4) of the Act to notify the Commissioners of his having ceased to have the intention to carry out taxable activities shall, within 30 days of his so having ceased, notify the Commissioners in writing and shall therein inform them of—

• (a) the date on which he ceased to have the intention of carrying out taxable activities; and

• (b) if different, the date on which he ceased to carry out taxable activities.

Transfer of a going concern

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• (1) Where—

• (a) a taxable business is transferred as a going concern;

• (ab) that business includes taxable activities that are carried out by a registered person;

• (b) the registration of the transferor has not already been cancelled;

• (c) as a result of the transfer of the business the registration of the transferor is to be cancelled and the transferee has become liable to be registered; and

• (d) an application is made on the form numbered 4 in the Schedule to these Regulations by both the transferor and the transferee,

the Commissioners may with effect from the date of the transfer cancel the registration of the transferor and register the transferee with the registration number previously allocated to the transferor.

• (2) An application under paragraph (1) above shall be treated as the notification referred to in regulation 6.

• (3) Where the transferee of a business has been registered under paragraph (1) above with the registration number previously allocated to the transferor—

• (a) any liability of the transferor existing at the date of the transfer to make a return or account for or pay any tax under Part III of these Regulations shall become the liability of the transferee;

• (b) any entitlement of the transferor, whether or not existing at the date of the transfer, to credit or payment under Part IV of these Regulations shall become the entitlement of the transferee.

• (4) In addition to the provisions set out in paragraph (3) above, where the transferee of a business has been registered under paragraph (1) above with the registration number previously allocated to the transferor during an accounting period subsequent to that in which the transfer took place (but with effect from the date of the transfer) and any—

• (a) return has been made;

• (b) tax has been accounted for; or

• (c) entitlement to credit has been claimed,

by either the transferor or the transferee, it shall be treated as having been done by the transferee.

• (5) Where—

• (a) a taxable business is transferred as a going concern;

• (ab) that business includes taxable activities that are carried out by a registered person;

• (b) the transferee removes material as described in regulation 21(2) or (4); and

• (c) the transferor has paid tax on the disposal concerned,

then, whether or not the transferee has been registered under paragraph (1) above with the registration number previously allocated to the transferor, any entitlement to credit arising under Part V of these Regulations shall become the entitlement of the transferee.

Representation of unincorporated body

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• (1) Where anything is required to be done by or under the Act (whether by these Regulations or otherwise) by or on behalf of an unincorporated body other than a partnership, it shall be the joint and several responsibility of—

• (a) every member holding office as president, chairman, treasurer, secretary or any similar office; or

• (b) if there is no such office, every member holding office as a member of a committee by which the affairs of the body are managed; or

• (c) if there is no such office or committee, every member;

but, subject to paragraph (2) below, if it is done by any of the persons referred to above that shall be sufficient compliance with any such requirement.

• (2) Where an unincorporated body other than a partnership is required to make any notification such as is referred to in regulations 4 to 6, it shall not be sufficient compliance unless the notification is made by a person upon whom a responsibility for making it is imposed by paragraph (1) above.

• (3) Where anything is required to be done by or under the Act (whether by these Regulations or otherwise) by or on behalf of a partnership, it shall be the joint and several responsibility of every partner; but if it is done by one partner or, in the case of a partnership whose principal place of business is in Scotland, by any other person authorised by the partnership with respect thereto that shall be sufficient compliance with any such requirement.

Bankruptcy or incapacity of registrable persons

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• (1) If a registrable person carrying out disposals at a landfill site becomes bankrupt or incapacitated, the Commissioners may, from the date on which he became bankrupt or incapacitated, as the case may be, treat as a registrable person any person carrying on any taxable business of his; and any legislation relating to landfill tax shall apply to any person so treated as though he were a registered person.

• (2) Any person carrying on such business as aforesaid shall, within 30 days of commencing to do so, inform the Commissioners in writing of that fact and the date of the bankruptcy order or of the nature of the incapacity and the date on which it began.

• (3) Where the Commissioners have treated a person carrying on a business as a registrable person under paragraph (1) above, they shall cease so to treat him if—

• (a) the registration of the registrable person is cancelled, whether or not any other person is registered with the registration number previously allocated to him;

• (b) the bankruptcy is discharged or the incapacity ceases; or

• (c) he ceases carrying on the business of the registrable person.

• (4) In relation to a registrable person which is a company, the references in this regulation to the registrable person becoming incapacitated shall be construed as references to its going into liquidation or receivership or entering administration; and references to the incapacity ceasing shall be construed accordingly.

PART III — ACCOUNTING, PAYMENT , RECORDS AND INFORMATION AREAS

Interpretation

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• (1) In this Part, an accounting period of a registered person means each period of three months ending on the dates notified to that person by the Commissioners, whether by means of a registration certificate issued by them or otherwise.

• (2) In every case, the first accounting period of a registered person shall begin on the effective date of registration.

Making of returns

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• (1) Subject to paragraph (3) below and save as the Commissioners may otherwise allow, a registered person shall, in respect of each accounting period, make a return to the Controller, Central Collection Unit (LT), in a form that is determined by the Commissioners in a public notice.

• (2) Subject to paragraph (3) below, a registered person shall make each return not later than the last working day of the month next following the end of the period to which it relates.

• (3) Where the Commissioners consider it necessary in the circumstances of any particular case, they may—

• (a) vary the length of any accounting period or the date on which it begins or ends or by which any return must be made;

• (b) allow or direct the registered person to make a return in accordance with sub-paragraph (a) above;

• (c) allow or direct a registered person to make returns to a specified address,

and any person to whom the Commissioners give any direction such as is referred to in this regulation shall comply therewith.

Landfill tax account

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• (1) Every registered person shall make and maintain an account to be known as “the landfill tax account”.

• (2) The landfill tax account shall be in such form and contain such particulars as may be stipulated in a notice published by the Commissioners and not withdrawn by a further notice.

Correction of errors

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• (1) In this regulation—

• “overdeclaration” means, in relation to any return, the amount (if any) which was wrongly treated as tax due for the accounting period concerned and which caused the amount of tax which was payable to be overstated, or the entitlement to a payment under regulation 20 to be understated (or both) or would have caused such an overstatement or understatement were it not for the existence of an underdeclaration in relation to that return;

• “underdeclaration” means, in relation to any return, the aggregate of—the amount (if any) of tax due for the accounting period concerned which was not taken into account; andthe amount (if any) which was wrongly deducted as credit,and which caused the amount of tax which was payable to be understated, or the entitlement to a payment under regulation 20 to be overstated (or both) or would have caused such an understatement or overstatement were it not for the existence of an overdeclaration in relation to that return.