Landfill Tax (Scotland) Act 2014 section 27

Adjustment of contracts

Section 27 deals with how existing waste disposal contracts are adjusted when there is a change in the landfill tax that applies to the disposal.

• Where a waste disposal contract is in place and the landfill tax charged on the disposal changes, the contract payment must be adjusted to reflect the new tax position.
• This automatic adjustment applies unless the contract specifically states otherwise — meaning parties can opt out if they wish.
• The rule applies regardless of when the contract was made, whether it covers other matters besides disposal, or whether it specifies a particular method of disposal.
• A "change in tax" includes a move from no tax being charged to tax being charged (or vice versa), as well as any change in the amount of tax due.