What is the Plastic Packaging Tax in the UK for 2026/27?

Full answer

Plastic Packaging Tax (PPT) was introduced on 1 April 2022 under the Finance Act 2021 to encourage the use of recycled plastic content in packaging and reduce plastic waste. It is charged on plastic packaging manufactured in or imported into the UK that contains less than 30% recycled plastic by weight. **2026/27 rate:** £217.85 per tonne (increased from £210.82 in 2025/26, uprated by CPI each April). **Who must register:** Any business that manufactures or imports 10 or more tonnes of plastic packaging in a 12-month period must register for PPT with HMRC, even if all packaging contains at least 30% recycled plastic (registration is still required but no tax is due on exempt packaging). **What is "plastic packaging":** Packaging where plastic is the predominant material by weight -- if a packaging component is made of multiple materials and plastic is not the greatest by weight, PPT does not apply to that component. **Exemptions (PPT not due):** - Packaging containing 30%+ recycled plastic content - Packaging that is NOT primarily plastic (e.g. cardboard with a thin plastic window) - Packaging permanently fitted to goods for transportation purposes only (but not retail-ready) - Packaging used for immediate packaging of a licensed medicine - Exported plastic packaging (relief/credit available) **Supply chain liability:** If PPT is not paid by the manufacturer or importer, liability can pass down the supply chain to the next UK business that holds the packaging. **Records and returns:** Quarterly returns filed online. HMRC may carry out compliance checks. Penalties apply for late returns and underpayment. **Policy intent:** PPT is designed to create a financial incentive for businesses to use recycled plastic -- the 30% recycled content threshold encourages investment in recycled plastic supply chains.

Try the calculator