Landfill Tax Changes
Budget Update
Key points
Government published a consultation paper early in 2008 announcing changes to be made in the 2008 Budget regarding land remediation and in particular to Japanese Knotweed.
Government has announced in the 2008 Budget:
o Introducing measures to reform the tax incentives for developing brownfield land to make them more environmentally sustainable. The landfill tax exemption for waste from contaminated land will be phased out by 1 April 2012.
o The Government intends to recycle the additional revenue to extend land remediation relief to expenditure on derelict land and to the removal of Japanese Knotweed by treatment from 1 April 2009.
o The intention is to provide land remediation relief at the rate of 150% for certain expenditure (now extended to JK) on long-term derelict sites.
o From 1 April 2008, and until at least 2010-11, the standard rate of landfill tax will increase by £8 per tonne each year.
o The transitional arrangements (to be confirmed in the summer) are expected to be as follows:
A deadline of 30 November 2008 for receipts of applications for exemption certificates,
All certificates granted after the 2008 Budget would have an end date of 31 March 2010 recorded on them,
All certificates issued prior to the 2008 Budget would cease to have an effect after 31 March 2010,
Waste disposal to landfill on or after 1 April 2010 would not be entitled to contaminated land tax exemption.
o The Government will consult on draft legislation for both reforms to land remediation relief and the landfill tax exemption for waste from the clean up of contaminated land in the summer.
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