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<p>In response to concerns over the mis-description of fines (residual waste from
waste processing produced by mechanical treatment plants) the Government announced
in Budget 2014 a consultation on introducing a new testing regime. This loss on Ignition
(LOI) testing regime will help operators of landfill sites to determine the correct
landfill tax liability of fines.</p><p> </p><p> </p><p> </p><p>The proposal for this
test arose from a government-industry working group, including representatives from
HM Revenue and Customs (HMRC), HM Treasury, the Environment Agency, the Environmental
Services Association (representing the main landfill site operators) and the United
Resource Operators Consortium (UROC) (representing waste transfer stations and skip
hire operators). The Government held a formal consultation over the summer which closed
on 19 September 2014.</p><p> </p><p> </p><p> </p><p>Comments on the assessment of
impacts in the Taxes Impact Assessment were welcomed within the consultation document.
The Government is currently considering its response and an impact note will be published
alongside draft legislation.</p><p> </p><p> </p><p> </p><p>HMRC is also considering
revising its guidance on landfill tax lower rating and conducted an informal consultation
with industry in Autumn 2013. That consultation is continuing through the government-industry
working group. The proposed revisions include clarification on the landfill tax liability
of hazardous wastes.</p><p> </p><p> </p><p> </p><p>In relation to hazardous waste,
the Government apply the underlying principle of the more polluting the waste the
higher the tax. According to existing guidance, wastes must be non-hazardous to qualify
for the lower rate of landfill tax. As the informal consultation raised concerns over
the potential impact on brownfield development there are no plans to publish the revised
guidance until this issue has been resolved. Publication of any revised guidance will
only go ahead once Ministers have given approval.</p><p> </p><p> </p><p> </p><p>Bottom
ash from waste combustion is liable to the lower rate of landfill tax. There are no
plans to change this policy.</p><p> </p>
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