Landfill Tax

The UK Landfill Tax was introduced in 1996 by the Conservative government, and was the UK's first environmental tax. Landfill tax was brought about to enable the UK to meet its targets set out in the Landfill Directive.

The amount of tax payable is calculated according to the weight of the material disposed of and whether it is active or inert waste.

• Inert waste covers most materials used in a buildings fabric as well as earth excavated for foundations. Most forms of concrete, brick, glass, soil, clay and gravel are classified as inactive.
• Active waste covers all other forms of non hazardous bio degradable material.

The standard rate of tax is charged on active waste; inactive waste is covered by the lower rate.

As of April 1st, 2009 the standard rate of landfill tax is £40 per tonne, up from £32 previously. 2007's budget announced annual increases in the standard rate of landfill tax of £8 per tonne from 2009/10 until at least 2010/11, by which time it will have reached £48 per tonne.

The current lower rate is £2.50 per tonne; an increase from the previous £2 rate.