Landfill Disposals Tax (Wales) Act 2017 section 88

Adjustment of contracts

Section 88 deals with the automatic adjustment of contract prices when there is a change in the landfill disposals tax that affects a disposal covered by an existing contract.

• Where a contract covers a taxable disposal at an authorised landfill site, and the tax chargeable on that disposal changes due to new legislation after the contract was made, the contract price adjusts automatically to reflect the tax change.
• This automatic adjustment applies unless the contract itself contains provisions that say otherwise — so parties can opt out by including specific terms in their agreement.
• A "change in tax chargeable" includes situations where tax is newly introduced on a previously untaxed disposal, where tax is removed from a previously taxed disposal, or where the amount of tax goes up or down.
• The contract in question is any agreement that provides for the disposal of material at a landfill site, regardless of whether it also covers other matters beyond the disposal itself.