SLfT2010 - Discounting for water content

SLfT guidance on the circumstances when Revenue Scotland can authorise a landfill operator to discount the water content of waste when weighing waste.

SLfT2010 - Discounting for water content

In certain circumstances, we can authorise a landfill operator to discount the water content of waste (but only where it is not present naturally) when calculating the taxable weight of the waste.

Naturally occurring water is any water that is present in the waste at the time of disposal that has not been added to the waste (or arisen) in any of the circumstances where a water discount applies described in the table below.

We would normally expect the waste producer to provide evidence to us of the amount of water that has been added to (or arisen in) the waste and remains in the waste at the time of disposal. The waste producer must nominate the sites that are to receive their waste and obtain the written agreement of the relevant site operators to apply the water discount. If we agree that a water discount may be applied we will write to the nominated sites informing them of the discount scheme and authorising them to apply the discount.

The circumstances under which a waste producer can and cannot apply for the water content of their waste product(s) to be discounted for SLfT purposes are set out in the table below.

Circumstances where water discount applies

Circumstances where no water discount can apply

 

If water is present in the waste because:

  • it has been added to allow for transportation for disposal;
  • it has been used for the purpose of extracting any minerals; or
  • it has arisen, or been added, in the course of an industrial process;

and

 

the water constitutes 25% or more of the waste by weight at the time of disposal;

and

you have demonstrated that the water content of your waste cannot readily be removed or reduced further.

If:

  • water is present naturally in the waste;
  • water is present because of rain or snow;
  • the amount of added water that is in the waste at the time of disposal is less than 25% of the waste, by weight, at the time of disposal;
  • any of the material is capable of escaping from the landfill site by leaching. (This restriction does not apply if it is only likely to do so in the form of water or if the leachate is collected on site and treated in order to eliminate any potential it has to cause harm); or
  • where the quantity of water extracted exceeds the quantity of water added, the water which remains in the waste will be deemed to have been present naturally.

     

If:

  • the waste material is the residue from the treatment of effluent or sewage by a water treatment works which contains water naturally;

and

  • additional water has been added to the waste prior to disposal.
  • no additional water has been added to the waste prior to disposal; or
  • water is present naturally in the waste; and
  • where any water has been extracted prior to disposal, this will be deemed to be water that has been added, up to but not exceeding the quantity of water that has been added, and in preference to water present naturally in the material;
  • where the quantity of water extracted exceeds the quantity of water added, the water which remains in the waste will be deemed to have been present naturally.

The Scottish Landfill Tax (Administration) Regulations 2015 regulation 38(5)-(9)

Applying to discount water

New applications from 1 April 2015

Guidance for both waste producers and landfill operators on how to make a new application to us to discount water for SLfT purposes (and where neither have an existing agreement with HMRC) is available on our website.

HMRC agreement for discounting water for pre-1 April 2015 disposals

If either you or a waste producer has an existing agreement from HMRC for discounting water in respect of certain waste producers, this will no longer be valid for SLfT purposes for any waste disposed of to landfill in Scotland from 1 April 2015. Both you and the waste producer will respectively need a new authorisation and agreement with us. Revenue Scotland has published further guidance on water discounting.

Penalty for failing to comply with authorisation or agreement to discount water content

You may be liable to a penalty if there is a failure to weigh material in accordance with any authorisation to discount water content you have with us or any agreement a waste producer has with us - see RSTP3021.

Regulation 39 of The Scottish Landfill Tax (Administration) Regulations 2015

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