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Treasury includes transitional period in trommel fines testing regime

A one-year transitional period will be granted as part of the introduction of a testing regime for the application of the lower rating of landfill tax on trommel fines, the Chancellor has said.

The decision was announced by George Osborne as part of the Autumn Statement on 3 December.

A loss on ignition (LoI) testing regime on waste resulting from recycling processes, grit and screenings will be introduced from April 2015.

The Treasury has confirmed that for the first 12 months, a LoI threshold of 15% will be in place for the fines to be eligible for the £2.5 per tonne rate. This will then be reduced to 10%.

The application of landfill tax to trommel fines has been at the centre of continuous discussions between industry and HM Revenue & Customs representatives.

The skip hire trade body Uroc had long campaigned for the introduction of a transitional period at 15%.

Uroc director Gary Ellison has said: “[We need] a transitional period in order to adjust to the new testing regime, modify and potentially improve operational procedures, for example take as much plasterboard out at the front end to try and prevent contamination of materials going through trommels and ultimately to raise capex to invest in new technology and equipment.”

Other moves included in the Autumn Statement were the launch of a public consultation on a reform of the Landfill Communities Fund and the start of negotiations with the Scottish Government on a block grant adjustment in relation to the devolution of the landfill tax from April 2015.

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