The Landfill Tax (Amendment) Regulations 2007

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations, which come into force on 1st April 2007, amend the Landfill Tax Regulations 1999 (S.I. 1999/1527) (“the principal Regulations”) and make changes to Part VII of the principal Regulations: “Credit: bodies concerned with the environment”. They change the maximum credit that landfill site operators may claim against their annual landfill tax liability. They simplify some of the obligations placed on environmental bodies and the regulatory body. They enable the regulatory body to make its approval of an environmental body subject to conditions. The Regulations enable the Commissioners to make its approval of the regulatory body subject to conditions.

Regulation 2 amends regulation 31(3) of the principal regulations to change the maximum credit a landfill site operator may claim against their annual landfill tax liability from 6.7% to 6.6%.

Regulation 3 provides for amendments to regulation 33A of the principal Regulations (obligations of approved bodies).

New regulation 33A(1)(aa) requires an environmental body to comply with any conditions that the regulatory body may impose under regulation 34(1)(aa).

The amendment to regulation 33A(1)(f) reduces the obligation on an environmental body to notify the regulatory body about the transfer of qualifying contributions. Only those contributions transferred by an environmental body must be notified.

New regulation 33A(1)(ha) requires an environmental body to provide the financial information specified there when the regulatory body requests that information. New regulation 33A(1)(hb) imposes a similar requirement on the environmental body if the Commissioners are performing regulatory functions in place of the regulatory body.

New regulation 33A(1)(i) reduces the obligation on an environmental body to provide accounts for its last financial year. The obligation arises only when the regulatory body requests those accounts. That request may not be made earlier than 10 months following the end of the financial year.

New regulation 33A(2) establishes the relevant period for the purposes of regulation 33A(1)(h),(ha) and (hb). New regulation 33A(4) relieves an environmental body of the obligation to provide financial information body under regulation 33A(1)(h) if that information has already been provided at the request of the regulatory body.

Regulation 4 provides for amendments to regulation 34 (functions of the regulatory body).

New regulation 34(1)(aa) and (ab) provides for the regulatory body to impose conditions in relation to the approval of an environmental body, and to vary or revoke those conditions.

New regulation 34(1)(k) requires the regulatory body to comply with the conditions imposed by the Commissioners under regulation 35(1)(aa).

Regulation 5 provides for amendments to regulation 35 (functions of the Commissioners).

New regulation 35(1)(aa) and (ab) provides for the Commissioners to impose conditions in relation to the approval of the regulatory body, and to vary or revoke those conditions.

Regulation 6 revokes regulation 6 of the Landfill Tax (Amendment) Regulation 2003. It preserves the effect of regulation 6 in relation to qualifying contributions made before 1st April 2003 but only if such contributions are required to be spent by an environmental body on one or more of the objects specified in regulation 6(3) of these Regulations. This obligation must be contained in a written agreement made before the Regulations come into force.

A full regulatory impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is forseen.