At Budget 2009 the Government launched a consultation on modernising landfill tax legislation. The consultation sought stakeholder views on proposals designed to ensure that landfill tax remains an effective means of reducing the volume of waste that goes to landfill; those proposals included the possibility of redefining the qualifying criteria for the lower rate of tax.
A non-interpretative summary of representations made during the consultation period, available at
was published on 4 December 2009. Responses were received from local authorities about incinerator bottom ash.
The Government have completed their dialogue with stakeholders who responded to the consultation and a response was announced at Budget 2010.
The Government have concluded that bottom ash and fly ash from wood or waste combustion will remain eligible for the lower rate of tax, as will those from coal combustion when they are landfilled in a site containing no other waste.
It is not possible using landfill tax receipts data to determine how much revenue is received from local authorities. This is because registered landfill site operators pay the tax to HM Revenue and Customs and pass on the cost to their customers through the disposal charges they set. The origin of the landfilled waste is not recorded on the tax return.