How is Scottish Landfill Tax calculated under section 13 of the Landfill Tax (Scotland) Act 2014?

Scottish Landfill Tax is calculated by multiplying the applicable tax rate by the weight of the material disposed of, measured in tonnes. The standard rate applies to most disposals. If the material consists entirely of qualifying material, a lower rate applies instead. Both rates are set by order of the Scottish Ministers.

What is qualifying material for the purposes of the lower landfill tax rate in Scotland?

Qualifying material is material that appears on a list maintained by the Scottish Ministers by order. The Ministers must set, publish, and keep under review the criteria guiding what material is listed. Different categories of qualifying material may attract different lower rates, so operators should verify which category their waste falls into.

Can the lower rate of Scottish Landfill Tax apply if a disposal contains some non-qualifying material?

No. The lower rate only applies where the disposal consists entirely of qualifying material. If even a small portion of the waste is non-qualifying, the entire disposal is taxed at the higher standard rate. Accurate waste classification and record-keeping are therefore essential for landfill site operators in Scotland.

Who sets the standard and lower rates of Scottish Landfill Tax and how are qualifying material criteria determined?

The Scottish Ministers set both the standard rate and the lower rate by order. They may set different lower rates for different categories of qualifying material. They are also required to establish, review, revise, and publish criteria for determining what counts as qualifying material, while retaining discretion to consider other relevant factors.

Landfill Tax (Scotland) Act 2014 section 13

Amount of tax

Section 13 explains how the amount of Scottish Landfill Tax is calculated on a taxable disposal, including the application of a standard rate and a lower rate for qualifying materials.

Tax is calculated by multiplying the applicable rate by the weight (in tonnes) of material disposed of
The standard rate applies to most disposals, while a lower rate applies where the material consists entirely of qualifying material
The Scottish Ministers set both the standard and lower rates by order, and may set different lower rates for different categories of qualifying material
The Scottish Ministers must establish, review, revise, and publish criteria for determining what counts as qualifying material

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