HM Revenue & Customs has launched a consultation on extending landfill tax to illegal sites, which details safeguards for landowners who carry out ”reasonable due diligence”.
The Government said it would combine legislation on illegal sites with changes on what materials are taxable.
HMRC said: “As a result, the legislation planned for the summer Finance Bill will be incorporated into the winter Finance Bill. There will be a common implementation date of 1 April 2018.”
Under the new measures, a person who dumps waste at a site without a permit – or who knowingly facilitates the dumping – could become liable for tax. All parties involved could also be liable to penalties for non-compliance or face criminal prosecution.
HMRC added: “Safeguards will be put in place to ensure that landowners and people in the waste supply chain who, despite carrying out all reasonable due diligence, were unknowingly involved in the illegal dumping won’t be assessed for any tax or penalties.”
The consultation closes on 18 February.
Mel Stride, financial secretary to the Treasury and paymaster general, told a Public Bill Committee meeting on the Finance (No. 2) Bill that the Office of Budget Responsibility had assessed the revenue impact of the landfill tax changes.
Stride said: “£145m is expected over the five years following implementation. Those impacts were assessed with the full support of the waste industry and after further contributions from the Environment Agency.”