SLfT1002 - How Scottish Landfill Tax works
SLfT1002 - Overview of SLfT and what it applies to
SLfT guidance covering the purpose of the tax as well as defining what a taxable disposal is.
We are responsible for the collection and management of SLfT. SLfT is a tax on the disposal of waste to landfill in Scotland, whether or not an authorisation (see section 39 of the LT(S)A 2014) is in force. The taxation of disposals of waste to landfill at unauthorised landfill sites (that is, illegal dumping) is a key difference between SLfT and UK Landfill Tax.
SLfT is designed to encourage efforts to minimise the amount of waste produced and the use of non-landfill waste management options, which might include prevention, reduction, recovery or recycling.
SLfT applies to all taxable disposals made in Scotland on or after 1 April 2015. A disposal is a taxable disposal if:
- it is a disposal of material as waste (see SLfT1003)
- it is made by way of landfill (see SLfT1004) and
- it is made at a landfill site (see SLfT1005)
SLfT also applies to the prescribed landfill activities relating to use of material on site that are listed in The Scottish Landfill Tax (Prescribed Landfill Site Activities) Order 2014 (as amended by The Scottish Landfill Tax (Prescribed Landfill Site Activities) Amendment Order 2022 and illustrated in SLfT3002 (subject to the site being covered by SLfT1005).
See SLfT3005 for guidance on disposals which are exempt from SLfT.
LT(S)A 2014 section 3
LT(S)A 2014 section 6
SLfT1003 - Disposal of material as waste
SLfT guidance on the definition of a disposal of material as waste.
A disposal of material as waste occurs if the person making the disposal does so with the intention of discarding the material. It does not matter if the material, either now or at some point in the future, may have a value or use by either the person making the disposal or another person. If the material is discarded then it is disposal of material as waste.
‘Material’ is defined in section 39 of the LT(S)A 2014 as meaning ‘material of all kinds, including objects, substances and products of all kinds’.
Where a person makes a disposal on behalf of another person, either at their request or in pursuance of a contract, the person on whose behalf the disposal is made is treated as making the disposal.
SLfT1004 - Disposal by way of landfill
SLfT guidance on the definition of disposal by way of landfill.
Disposal of waste by way of landfill takes place 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 (land includes land covered by water which is above the low water mark of ordinary spring tides).
Whether the material is placed in a container before it is deposited is irrelevant.
If the material is covered with earth or similar material straight away, or if it is deposited in a cavity such as a cavern or mine, this is still a disposal for the purposes of SLfT.
If material is deposited with a view to being covered at a later stage with earth (or similar material such as sand or rocks), the disposal is made when the material is deposited, not when it is covered.
A landfill site is generally a site designed and adapted for the disposal of waste. It includes any site:
- where disposals of material are made on or under the land;
- where an environmental authorisation is required for the disposals (whether actually held or not);
- which is used for more than a year for the temporary storage of waste prior to disposal, or where waste is stored as a general rule for a period of more than three years prior to recovery or treatment; or
- which is an internal waste disposal site (that is, a site where a producer of waste is carrying out its own waste disposal at the place of production).
A landfill site does not generally include:
- any facility where waste is unloaded in order to permit its preparation for further transport for recovery, treatment or disposal elsewhere;
- any site where waste is stored as a general rule for a period of less than three years prior to recovery or treatment; or
- any site where waste is stored prior to disposal for a period of less than one year.
A site operating under an exemption from Waste Management Licensing, which is complying with the exemption requirements, will not have a tax liability. However, there may be a tax liability for sites operating under a waste management exemption where the activity is not compliant with the terms of that exemption.
SLfT1005 - Disposal at a landfill site
Waste disposed of to landfill at an unauthorised landfill site (that is, illegal dumping) is a taxable disposal for the purposes of SLfT.
A site is relevant for the purposes of SLfT if there is, or should be, a requirement to have a licence, permit or authorisation to allow disposals in or on the land under:
- The Pollution Prevention and Control (Scotland) Regulations 2012 (as amended);
- The Landfill (Scotland) Regulations 2003 (as amended);
- Part II of the Environmental Protection Act 1990 (as amended); and
- Regulations made under section 18 of the Regulatory Reform (Scotland) Act 2014 (note: this section was commenced on 30 June 2014 but regulations have not yet been made).
SLfT1006 - Liability to pay SLfT
SLfT guidance on who is liable to pay SLfT.
You are liable to pay SLfT on a taxable disposal if you are the permit or authorisation holder for a landfill site in Scotland. You will also be liable to pay SLfT on a taxable disposal if you should have had a permit or authorisation for the deposit. In other words, if you knowingly permit or carry out a disposal on an unauthorised site you will be liable to pay SLfT on that disposal.
If you operate a licensed or permitted landfill site in Scotland, any waste deposited in it, including waste which you have produced, will be liable to SLfT unless it is exempt from tax. This includes in-house sites where waste producers dispose of their own waste.
You must notify us of your intention to make taxable disposals and liability to be registered for tax within 30 days of first making taxable disposals, or forming the intention to make taxable disposals, whichever date is earlier (see SLfT4002).
Waste disposed of to landfill at an unauthorised landfill site (that is, illegal dumping) is a taxable disposal for the purposes of SLfT.
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