Budget 2014: New testing to define "rubbish tax" rates

Budget 2014: New testing to define "rubbish tax" rates

Tax rates fuel strong emotions between lower and higher rates of landfill tax

Also on KPMG.com

Wednesday 19th March 2014

There has been a mixed response from industry to today’s Budget announcement that the Government is to adopt loss on ignition testing to determine the rate of landfill tax that will apply to residual material from waste transfer stations.

Commenting on the announcement, Barbara Bell, Head of KPMG’s Environmental Tax team, said: “This is a debate that has raged since the skip tax furore of 2012 and it provokes strong emotions because of the huge difference between the lower and higher rates of landfill tax. Some taxpayers also feel that it is unfair that they should be hit by the full rate of landfill tax at £80 per tonne from 1st April 2014, when they have done everything they can to remove recyclable material from the waste that is delivered to their transfer stations.”

“Loss of ignition testing will be one way to decide landfill tax liability but, whilst welcomed by some waste producers and landfill site operators, others consider that it does not sit easily with the environmental rationale of the tax. Any interested parties should ensure that they partake in the consultation exercise that will be launched later this year.”


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For further information please contact:

Simon Chan, KPMG Corporate Communications

M: 07747 564 737

E: simon.chan2@kpmg.co.uk

KPMG Press office: +44 (0)207 694 8773

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Chancellor’s Budget 2014


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KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with approximately 11,500 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such. 

This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.

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