Scottish Landfill Tax is a fully devolved environmental tax administered by Revenue Scotland, separate from UK Landfill Tax. This guide explains who is liable, the standard and lower rates, and the Scottish Landfill Communities Fund.
What Scottish Landfill Tax Is
Scottish Landfill Tax replaced UK Landfill Tax in Scotland from April 2015, becoming one of the first fully devolved taxes administered independently by Revenue Scotland. It is charged on landfill site operators for taxable waste disposed of at their sites, with the cost normally passed on to businesses and organisations using the site through the gate fee charged.
Standard and Lower Rates
There is a standard rate applied to most active and biodegradable waste, and a much lower rate for qualifying inert material such as rock and soil that meets Revenue Scotland's criteria for lower-rate treatment. Because rates are reviewed each Scottish Budget, operators and businesses should check current published rates rather than assume they match previous years.
The Scottish Landfill Communities Fund
The Scottish Landfill Communities Fund allows registered landfill operators to claim a tax credit against their SLfT liability for contributing to approved environmental and community projects near landfill sites, similar in structure to the Landfill Communities Fund that operates alongside UK Landfill Tax elsewhere in the UK.
Comparison With Other Nations
Wales operates its own equivalent devolved tax, Landfill Disposals Tax (LDT), administered by the Welsh Revenue Authority, while England and Northern Ireland remain under UK Landfill Tax administered by HMRC. Each nation's rates, exemptions and community fund rules can differ, so a business operating landfill sites across more than one nation needs to track each regime separately.
Frequently Asked Questions
What is Scottish Landfill Tax?
Scottish Landfill Tax (SLfT) is the fully devolved tax charged on waste disposed of at landfill sites in Scotland. It replaced UK Landfill Tax in Scotland from April 2015 and is administered separately by Revenue Scotland, rather than by HMRC.
Who has to pay Scottish Landfill Tax?
Landfill site operators are liable to register for and pay SLfT on taxable waste disposed of at their site. The cost is typically passed on to businesses and organisations that use the landfill site through the gate fee they are charged.
Are there different rates of Scottish Landfill Tax?
Yes -- there is a standard rate for most active or biodegradable waste and a significantly lower rate for less polluting "qualifying" material such as rocks, soil and other inert waste that meets the criteria set out by Revenue Scotland.
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How does Scottish Landfill Tax differ from UK Landfill Tax?
Both taxes work on a similar principle -- charging landfill operators for waste disposed of at their site -- but the rates, exemptions and administration are set separately in Scotland by the Scottish Parliament and Revenue Scotland, and can diverge from the rates and rules that apply to landfill sites in England and Northern Ireland under UK Landfill Tax.
What is the Scottish Landfill Communities Fund?
The Scottish Landfill Communities Fund lets landfill operators claim tax credits against their SLfT liability for contributing to approved environmental and community projects near landfill sites, similar in principle to the equivalent scheme that exists for UK Landfill Tax.
Does Wales have its own version of this tax too?
Yes -- Wales has its own devolved Landfill Disposals Tax (LDT), administered by the Welsh Revenue Authority, which operates on a similar model to Scottish Landfill Tax but with its own separate rates and rules, reflecting that environmental taxes on landfill are devolved separately to each of Scotland and Wales.
Do businesses need to register separately for Scottish Landfill Tax?
Landfill site operators in Scotland must register with Revenue Scotland specifically for SLfT; a business that was previously registered for UK Landfill Tax with HMRC for a site now in Scotland needed to register separately with Revenue Scotland once the devolved tax took effect.
Does Scottish Landfill Tax apply to household waste collections?
The tax is charged on waste disposed of at the landfill site itself rather than directly on households, but the cost is ultimately reflected in the fees local authorities and waste contractors pay, which can influence council tax and waste collection charges indirectly.
Disclaimer: Scottish Landfill Tax rates and rules are set by Revenue Scotland and reviewed each Scottish Budget. This guide is for general information only and is not professional advice. Refer to revenue.scot for current official guidance before relying on any figure.
