Determining whether Landfill Disposals Tax is payable

Since 1 April 2018, LDT is chargeable on taxable disposals in Wales. A taxable disposal is a disposal of material as waste made by way of landfill.

A disposal of material as waste

An authorised landfill site is a site which operates under a bespoke environmental permit authorising the disposal of waste by landfill.

The person responsible for the disposal is the landfill site operator holding the environmental permit authorising landfill disposals at the site, at the time of the disposal.

If the person responsible for the disposal intends to discard the material, the disposal is treated as a disposal of waste.

If the disposal is made without the permission of the landfill site operator, then the person responsible for the disposal is the person who makes the disposal.

An intention to discard material may be inferred from the circumstances of its disposal, in particular, from the deposit of material in an area on a landfill site, such as a void, that's generally used for landfill disposals.

Sometimes a landfill site operator continues to make a temporary or incidental use of material deposited on the site and benefits from it. One example would be using gas produced by the waste’s decomposition to generate electricity.

This temporary or incidental use does not necessarily mean the landfill site operator, when depositing the material, did not intend to discard it. The intention to discard material can still be inferred in these circumstances. Ordinarily, the disposal of material in a landfill disposal area will be a taxable disposal.

At an unauthorised site, the person responsible for the disposal is the person who made that disposal.

Disposal of material made by way of landfill

A disposal is made where material is deposited: 

• on the surface of the land
• on a structure set into the surface of the land
• or under the surface of the land, such as in a mine or cavern

This applies whether or not the material is placed in a container before it's deposited.

Please contact us for a tax opinion, if you're using material: 

• to form a layer immediately above the base of a landfill cell which performs the function of drainage
• to construct any pipe, pump or associated infrastructure for the purposes of the extraction or control of surplus liquid or gas from or within the cell

We'll need evidence of depths and quantities.

LDTA contains a list of activities (at section 8(3)), which are to be treated as taxable disposals, whether or not the activity would otherwise meet the conditions for a taxable disposal. 

They are:

• using material to create or maintain a temporary road giving access to a landfill disposal area
• using material to create or maintain a temporary hard standing
• using material to create or maintain a cell bund
• using material (other than naturally occurring material extracted from the site) to create or maintain a temporary screening bund
• using material to cover a landfill disposal area during a temporary cessation in landfill disposals
• 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
• keeping material in a non-disposal area beyond the end of the maximum period specified in a WRA notice designating the area (section 55 LDTA), unless the material is dealt with in accordance with an agreement
• storing ashes, for example, fly ash and bottom ash
• using material in restoration work

The disposal is to be treated as taking place when material is first used in relation to a specified activity. For example, the point at which material was used to create a temporary road would trigger a taxable disposal and if further material was subsequently used to maintain or repair that road, that material would be the subject of a taxable disposal on the date on which it was used.

For activities that are taxable disposals, tax is due regardless of whether the material was bought for the purpose of the activity or was otherwise obtained.

Temporary and permanent roads

Temporary road

A temporary road giving access to a landfill disposal area meets the conditions of a taxable disposal. 

These may:

• have no engineered features, such as kerbs, drainage, road signs or other markings or landscaping
• be constructed using crushed or re-usable materials, including concrete and tarmac as well as dry household or construction waste
• eventually be subsumed into the landfill site
• not be surfaced

Permanent road

In contrast, a permanent road (whether at the approach or entrance to the site or a primary or secondary access road) does not meet the conditions of a taxable disposal. 

These may:

• have engineered features, such as kerbs, drainage systems, culverts, road signs or other markings or landscaping
• be surfaced, for example with concrete or tarmac
• have been constructed before the start of tipping operations on the site
• not usually be subsumed into the landfill site
• have to be maintained

Temporary and permanent hard standing

Temporary hard standing

The use of material for the construction or maintenance of a temporary hard standing or a base is taxable. Activities such as waste recycling or treatment could take place on the hard standing.

Such bases do not have engineered features (which may include sealed drainage) and may be made from crushed or re-used materials, such as concrete or tarmac. They may eventually be subsumed into the landfill site.

Permanent hard standing

The use of material for construction or maintenance of a permanent hard standing is not taxable. Permanent hard standings have engineered features (which may include sealed drainage) and have a surface that's prepared and/or finished.

Temporary screening bund 

The use of any material to create or maintain a temporary structure, either below or above ground, with the purpose of reducing the visual or noise impact of discrete activities on a landfill site, is taxable.