Glossary · UK
What is Landfill Tax?
A tax on waste disposed of at licensed landfill sites. The 2026/27 standard rate is GBP 126.15 per tonne; lower rate GBP 4.05 per tonne for inactive waste.
Full Definition
Landfill Tax is a UK environmental tax charged on the disposal of waste at licensed landfill sites, introduced on 1 October 1996. It is designed to encourage waste producers to produce less waste, recover more value from waste through recycling and composting, and use more environmentally friendly methods of waste disposal. There are two rates for 2026/27: the standard (active waste) rate of GBP 126.15 per tonne applies to most types of waste disposed of at landfill; the lower rate of GBP 4.05 per tonne applies to qualifying inactive (inert) waste -- materials such as rocks, soil, concrete, bricks, tiles and ceramics that do not decompose, burn or produce leachate or gases. The tax is paid by the landfill site operator, who typically passes the cost on to the waste producer. Landfill operators must register with HMRC. Certain exemptions apply, including waste from mining and quarrying operations, dredging activities, pet cemeteries, and waste from sites used for charity fundraising events. The Landfill Communities Fund (LCF) allows landfill site operators to contribute a percentage of their Landfill Tax liability to approved environmental bodies, in exchange for a credit against their tax bill. Landfill Tax has contributed to a significant reduction in the proportion of UK waste going to landfill over recent decades.