Inert Waste Landfill Tax

Although large tonnages of these inert waste is disposed of at landfill sites, the disposal of inert waste ( which complies with the classification rules) usually attracts a much lower rate of landfill tax for its disposal than municipal waste.

The UK Landfill Tax was presented when it was first introduced in 1996 as an environmental tax by the Treasury. The reason for introducing it was to assist in encouraging UK industry to minimize the quantity of waste going to landfill.

At the time, there it was claimed that it would not lead to an increase in costs for businesses as the National Insurance payment (NI) levied on all working UK citizens was simultaneously decreased, but it has since become disconnected from that argument and the NI was only increased in that year, whereas the Landfill Tax has continued to rise.

The rate of landfill tax has also been progressively increased, still disguised as an incentive to attempt to minimize landfill and encourage recycling, and in 2015 will be pegged to the rate of  inflation, until the UK government decides whether to raise it still further beyond inflation every year.

The Inert Waste Landfill Tax is divided into two bands.

A lower band is used to inert waste that consists of no naturally degradable material, whilst all other general waste has the basic band used.

Certain wastes are exempt and these regulations are subject to change, but when written the following applied:

• dredgings from inland waterways and harbors,
• infected land under certain circumstances,
• waste from mining and quarrying and
• inert waste that is used for long-term engineering functions on a landfill site, to name a few.

You may also find our page titled “Inert Waste Disposal – Is My Waste Inert?” interesting.